The Department of the Environment has told RTÉ News that the allocation of funds for 2009 to the Ballymun Regeneration Scheme will be finalised after next month's Budget.
The Department has already said that €45m will be provided this year, compared to €80m last year.
Ballymun Regeneration Limited says that this means that 500 families who had hoped to be moved out of their old flats and placed in new homes by 2012 will now have to wait until 2014 for the move.
One of those still waiting to be moved told RTÉ News that she would invite any of the people who control the purse strings to come and live in Ballymun flats and see what they think.
'They should come and live here for a week, they wouldn't even last a week,' said mother of two Deirdre Byrne.
'This a disgrace, we have nobody living in the flat above us, or below us, or beside us. I'm terrified someone will break in to one of the flats and cause a flood or other damage,' she added.
Jim Conway of Ballymun Regeneration Limited said that because of the cut in funding the completion of the Ballymun project was being pushed out to 2014.
'We have 1,500 families already moved to their new accomodation, and 300 more moving soon. But this cut means the remaining 500 units will not be ready until 2014,' he said.
Local Sinn Féin Councillor Ray Corcoran described the situation as crazy.
He said 'People are looking at their friends moving into their new homes, and they want that for their families. People are being left in limbo.'
'Now is the time to actually build,' said Labour Councillor Andrew Montague.
'Not only should the building happen now because it's what families deserve, but it would also create employment and provide value for money, as builders compete for contracts,' he said.
The Department of Environment this evening said that over €580m has already been devoted to the Ballymun Regeneration Programme.
The Department is 'actively working with Ballymun Regeneration Ltd and the local authorities to ensure that the regeneration project can be sustained, consolidated and completed, taking account of budgetary circumstances, with a particular focus on achieving best value for money.'
