74 social housing projects have been delayed by months after running out of money due to building cost inflation.
The Department of Housing confirmed to RTÉ's This Week programme that it has been asked to provide additional finance so that the projects can be completed.
However, the process of applying for new funding can take several months, resulting in delays in the delivery of thousands of social homes.
The projects are being financed by the Capital Advance Leasing Facility (CALF) which is available to Approved Housing Bodies to help them finance social housing.
Funding is also being provided by the Housing Finance Agency.
However, in some cases funding was approved before the Covid pandemic, and since then building costs have increased by an average of 6.5%.
A spokesperson from the Department of Housing said the Government understands challenges facing the construction sector from high inflation, pressures on supplies and rising interest rates.
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"During the last 12 months, this Department has considered in the region of 74 CALF projects for reassessment due to increased cost inflation and analysis of that data is ongoing.
"The indications are that the average Capital cost increase is in the region of 6.5% with the resulting input from the CALF fund on projects increasing by approximately 4.5%" the spokesperson said.
The department said the Minister for Housing announced changes to the CALF scheme in March, which would address the challenges faced by the sector in accessing income to build social houses, particularly in rural towns and villages.
The housing agency Respond confirmed that work on one of its projects in Sandyford in Dublin has been halted due to building cost inflation.
The project, involving the construction of 65 social homes, is scheduled to recommence later this month once new finance has been secured.
The agency blamed building cost inflation and Covid lockdowns for the delays.
It said it is working with the developer and has gone back to the Department of Housing and the Housing Finance Agency to reapply for funds.
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Meanwhile, Sinn Féin's finance spokesperson has said that he was concerned but not surprised by the delay to the social housing projects.
Pearse Doherty said that Sinn Féin had been arguing that there needs to be a nimble way for the department to sanction approved house bodies over legitimate increases in costs due to inflation through an open book process.
Speaking on RTÉ's This Week programme, he said: "It can't be a situation where you have to go back for for full approval again... we've heard of approved housing bodies for example, that was one that was supposed to have 700 commencements last year, only 200 actually commenced.
"This is another example of just where the lack of urgency is there from Government... stalling these projects means that it's going to cost more at the end of the day."
