23 new homes are to be built in Calle ses Coves den Vicari Ronda, in the municipality of Santanyí.
The project will cost 3.6 million euros and the houses will be built on a plot that's been owned by the Ibavi for around 10 years.
The Mayor of Santanyí, Mari Pons, says building will begin this year, but that more homes are desperately needed.
"We will continue to claim that more social homes be made in the municipality because these are not enough."
A total of 200 social homes are to be built in Inca, Calvià, Manacor, Vilafranca, Son Servera and Santanyí.
The Government is investing 28.8 million euros in the project and 13 million euros of Tourist Tax money will be used to finance the rest.