Elderly residents in Dublin's Dolphin House complex are being left out of the regeneration scheme because of budgetary constraints.
The 44 units for older citizens in Dolphin Park consist of single room accommodation that would be regarded as sub-standard under new regulations.
Phase one of the regeneration for 96 units in Dolphin House flats is due to get under way, but the residents of Dolphin Park are being told they will have to wait.
Dublin City Council says it has drawn up a plan to attract independent housing agencies to develop new accommodation for them.
However, some of the older residents do not believe they will live to see it.
At present the residents have one room to live, eat and sleep, in which local councillor Críona Ní Dhalaigh says is not conducive to mental health.
She also says the number of units should be reduced with any future redevelopment.
While bedsits are still legal as long as they provide bathroom and toilet facilities, the current units would not meet the minimum space requirements for new builds.
The city council which is facing a big increase in housing demand, has said it would not be feasible to eliminate bedsit accommodation at present.