Donegal County Manager Seamus Neely has confirmed that the sale of a house it planned to allocate to a traveller family had not been completed when the house was extensively damaged by fire on 11 February.
Gardaí are investigating the fire at the five-bedroom house at Parkhill in Ballyshannon.
The purchase of the property by the council for social housing was the subject of controversy.
Mr Neely told a meeting of Donegal County Council that following a review of the procedure, he was satisfied that the decision taken to purchase the house was justified.
The Local Traveller Accommodation Consultative Committee agreed the process was proper and in order.
Mr Neely said the council is committed to continuing to work with all stakeholders to ensure that all Travellers in Donegal have an opportunity to achieve their full potential in all aspects of their lives.
He added that the council is committed to continuing the work with the LTACC in terms of delivering the accommodation programme, as set out in its traveller accommodation programme.