Councillors have vetoed plans by Dublin City Council to refurbish O’Devaney Gardens to house homeless families.
Forty three councillors voted in favour of the motion stopping the council from spending 4.7 million euro on retro-fitting the dilapidated complex.
Council management had said temporary housing was needed due to the numbers of families in emergency accommodation.
But councillors said the idea of refurbishing units earmarked for demolition was the wrong solution.
Many also expressed concern for the 14 remaining families in the complex who feared that the planned regeneration of the area would not go ahead as a result.
Lord Mayor Christy Burke said it would be a waste of taxpayers money while Sinn Fein’s Janice Boylan says the project is not the solution to the bigger problems in the area.