The last 31 families waiting on new homes as part of the Ballymun regeneration plan will now have to go through a voluntary housing scheme because of cutbacks.

Dublin City Council has confirmed that funding changes for the regeneration will mean a cutback of €19m and deferment of additional projects worth €50m.

The council said there are discussions with Clúid Voluntary Housing Association about getting the families permanent new homes.

It also pointed out that over 1,700 families have been re-housed as part of the regeneration with a further 245 housing units due to be completed.

The council said that negotiations with the Department of the Environment about funding are continuing and that the 2014 deadline for re-housing all families will be met.

The cutbacks were revealed in a letter from Ballymun Regeneration Limited (BRL), the company set-up by Dublin City Council, to local representatives.

It stated that the "current turn of events" is driven by a shortage of funding at a national level.

It also said that BRL have been requested by the Department of the Environment to "explore alternative funding options" in relation to the final 31 housing units.

Cllr Paul McAuliffe of Fianna Fáil said the families currently living in the remaining flats have been left in limbo with a limited prospect of being re-housed.

Mr McAuliffe also said the cutbacks by the Department of the Environment to planned public parks and road realignments amounted to a downgrading of the regeneration project.

"In focussing purely on housing, the department is reverting to an old-style housing programme rather than regeneration, a path that will lead to many of the original mistakes, made in the Ballymun estate in the 1960s, being repeated 50 years on," he said.