Last month the project had looked to be in doubt when the vacant land at Knockview Road was claimed by two different Government departments.
While Social Development Minister Margaret Ritchie publicly declared the site would indeed be used for social housing, Education Minister Caitriona Ruane contradicted that statement, claiming it would be sold off on the open market.
With local politicians left confused and frustrated by the apparent lack of clarity on the matter, the Newtownabbey Times asked the two departments to reveal what exactly was going to be done with the former school site.
It appears both departments are now singing from the same hymn sheet, and the proposed new housing project will definitely be going ahead.
"When this site was first declared as surplus by Land and Property Services, the Northern Ireland Housing Executive immediately registered their interest in acquiring the site.
"Negotiations to finalise the purchase of the site are at an advanced stage and Oaklee Housing Association has been appointed to develop the site once formal acquisition has taken place," a spokesperson for the Department for Social Development confirmed.
"The purchase of this site will allow for a much needed housing solution to be found for those in housing need in that community," he added.
A spokesperson for the Department of Education confirmed that the Education Minister is "reviewing" her earlier statement on the issue.
While no official response was available at the time of going to print, the Times understands that the department is no longer laying claim to the site, paving the way for the DSD's social housing scheme.
It is understood that Oaklee Housing Association has programmed for construction work to begin on 20 new houses in 2009 or 2010.
Local councillor and Ballyduff community worker John Scott, who hit out at the confusion created by the Ministers' conflicting statements last month, welcomed the latest development.
"It's very good news, especially for the many local people needing somewhere to live because the housing shortage in this area is unbelievable.
"It'll be great for the area - for the Ballyduff area in particular and people across Newtownabbey in general.
"We were previously told that building could start in 2009 or 2010, but the sooner work starts the better," he said.
The school, which closed last year because of falling pupil numbers, was demolished by contractors last month.