Plaid Cymru AM Lindsay Whittle has urged the Welsh Government to provide funding so local authorities can build desperately needed homes.
The South Wales East AM, who is a former leader of Caerphilly County Borough Council, raised the issue at meeting of the Local Government Committee in the Welsh Assembly.
Lindsay Whittle said: “There is a desperate shortage of affordable housing and I believe with funding from the Welsh Government, local authorities could develop small infill developments on land they already own.
“This could also provide an opportunity for local companies to bid for work and provide jobs when development takes place. It also keeps money in the local community. Imagine what say £70m of funding could do to tackling the housing crisis.
“There are partnerships between local authorities and housing associations. But the changes in housing benefit regulations where money is paid directly to tenants could have a major impact on association finances as a pilot scheme in Torfaen showed when arrears jumped substantially. The Welsh Government could have a major impact if it provided a stimulus.”