An agreement on the housing mix for the redevelopment of O'Devaney Gardens in Dublin 7 has been reached between city councillors and the Department of Housing.
Dublin City Council Chief Executive Owen Keegan had warned the plan for 479 units on the North City site was in jeopardy after councillors passed a motion that all the homes should be either social or cost rental because of the housing crisis.
But representatives of a majority of councillors have now agreed to a proposal from Minister for Simon Coveney.
Mr Coveney agreed that his department would fund 30% of the units for social housing, with 50% for the private market and another 20% for affordable or cost rental, which involves low-income tenants paying 20% below market rents.
The agreement was reached after a meeting between the Corporate Policy Group, which is made up of the Lord Mayor and councillors who are heads of Strategic Policy Committees.
It will now be presented to the Housing Committee and a full meeting of the council which will be asked to remove the original motion.
Mr Keegan had said that having the development 100% public housing this was in breach of planning permission and national housing policy and would not be funded by the Government.
Head of the Housing Committee Daithí Doolin (Sinn Féin) said he welcomed the agreement.
He said "it is essential that we have a building programme that meets the needs of our city. Dublin City Council has plans for housing but until now we lacked the funding to proceed. I believe today's proposal changes all that."
However, Éilis Ryan (WP), who proposed the motion to have 50% of the units for social housing and 50% for cost rental, criticised the fact there were no representatives of her party or People Before Profit, Anti Austerity Alliance or Independents4Change invited to the meeting.
"In arranging such a behind closed doors meeting, Minister Coveney is showing he is willing to completely disregard and ride rough shod over local democracy in his fevered charge to give public lands to private developers."
She also said her party had legal advice that the 100% public housing requirement was not in breach of planning permission or national policy.
The O'Devaney development is part of a new form of public private partnership called the Land Initiative which the city council hopes will provide a total of 1,345 homes and also involves two other sites at Oscar Traynor Road in Coolock and St Michael's Estate in Inchicore.
Private developers will be allowed to build on council-owned land as part of a master plan that involves an agreed mix of private, social and affordable housing.
