Plans to close around 14 Victorian-era psychiatric hospitals and to transfer around 1,200 patients to community facilities over the next three years have been announced.
The changes were promised in the Government's 2006 mental health policy 'A Vision for Change'.
Minister for State with Responsibility for Mental Health John Moloney said around €50m a year will be available over the next three years, from the sale of buildings and land, to reinvest in community mental health facilities.
He said that the transfer of patients to community facilities will not be totally dependent on the sale of assets.
Recent reports from the Inspector of Mental Health Service have heavily criticised conditions in several hospitals including St Ita's in Portrane, St Loman's in Mullingar and St Senan's in Enniscorthy.
The College of Psychiatry of Ireland has also criticised the slow pace of promised improvements.
The HSE said that around €140m has been spent on mental health infrastructure since 2005.