Commissioners say it has been five months since approval was given
Castletown Commissioners claims the delay on the second phase of its School Hill development is due to Treasury.
It says a decision was made in May this year to approve this stage of the scheme, but says it has been waiting for the government to 'approve' the initiative.
In May, it was estimated to cost the local authority £11.5 million and was planned to be completed in about two years.
The commissioners add that after five months, Treasury has 'still not approved' the finances and it will continue to seek an early start, so 'much needed' housing can be made available.
Manx Radio has contacted Treasury for comment.
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