Efficient local authorities will be rewarded as part of a Government drive to reduce housing waiting lists by a quarter by 2017.
Some €1.5bn is being allocated to City and County councils across the country to tackle the number of people waiting for social housing.
The Government expects almost 23,000 additional housing units to be built or refurbished in the next two years.
Minister for the Environment Alan Kelly told LIVE 95 his department will be keeping a close eye on progress.
"Really what we are doing is we're giving every local authority the chance to show what they can deliver - and I fully intend on rewarding local authorities that can deliver quickly and on time and in budget," he said.
"And I expect from my engagement with all the local authorities who have key demands, that they will be the ones who will deliver the most."