Work is to resume at the Ballymun site where the first set of pre-fabricated or modular homes are to be located.
Construction had been stalled since last week after protesters gathered at the entrance.
There have been no demonstrations since Friday.
Dublin City Council said work will resume at the site tomorrow morning.
It said an agreement has been reached in principle with O Cualann Housing Co-operative over the development of co-operative housing on the remainder of the site.
Protesters had claimed the modular housing project puts plans by the local co-op to build 40 social housing units on the same land in serious doubt.
Some of the demonstrators also expressed concerns about the suitability of the prefabricated or modular homes.
The 22 units for homeless families are due to be finished and ready for living in by the end of December.
