The Government is to launch the new Land Development Agency, which it says will coordinate State owned lands for regeneration and development, and open up sites for the provision of housing.
It will be funded to the tune of €1.25 billion and will have the power to use State land and to buy private lands on which potentially thousands of homes will be built across the country.
The Government believes the new agency could lead to the construction of more than 150,000 homes over the next 20 years.
They will include social, affordable and private homes.
The new organisation will be run along commercial lines and it will see the State forming joint ventures with builders and developers to provide homes.
It is understood there will be a requirement that one third of homes built on State lands will have to be affordable ones.
Taoiseach Leo Varadkar has already said this initiative will be viewed in the future as being on par with the establishment of the ESB and the IDA.
Minister for Housing, Planning and Local Government Eoghan Murphy brought proposals for its establishment to a Cabinet meeting recently.