Appeals are being made for up to ten Ukrainian school-going children and their families to be allowed remain in Cahersiveen, Co Kerry.
Some 80 residents, or just under half the Ukrainian residents at the Skellig Accommodation Centre in Cahersiveen, were told on Friday they are to be moved to other accommodation.
While 40 will remain in the area, another 40 are being placed in Tralee town centre with effect from next Tuesday.
The Department of Children, Equality, Disability, Integration and Youth said the move was in order to provide accommodation for international protection applicants, amid what it said in a statement to Radio Kerry, was a severe shortage of accommodation for international applicants.
The hotel and apartments formally known as the Skellig Star - and previously a direct provision centre during the pandemic - has been accommodating around 200 Ukrainian temporary protection refugees since March of last year.
However, the arrangement was on an interim basis as the facility had previously been successful in applying to host international protection applicants, according to the Department.
The plan to remove the five families has caused great upset in Cahersiveen, local Fianna Fáil councillor Norma Moriarity said.
"There are very few towns who have taken a 40% increase in population and made a real success in terms of integration and that didn't happen by accident. This has stemmed from a huge level of energy and commitment," Ms Moriarty said, referring to both the professional and volunteer input.
There are concerns that much of that spirit will be undermined, she said, and the community was appealing to the Minister and his department to "leave well enough alone" and let the families stay and not undermine the good work that had been done.
Both the Minister for Children Roderic O'Gorman and Education Minister Norma Foley, TD for Kerry, have been contacted.
Some of the people being moved are working in Cahersiveen, Fianna Fáil Councillor Michael Cahill said. They are also involved in sporting and social organisations.
"There is extreme anger about this - the agencies and schools have put in huge effort," Mr Cahill said.
"I am imploring Minister O'Gorman to allow these refugees the little comfort they have now achieved and give the alternative accommodation to the newcomers," he said.
In its statement, the Department of Children and Integration said there is a severe shortage of accommodation for international protection applicants, and as such the Skellig Accommodation Centre in Cahersiveen is required in order to prevent asylum seekers from entering homelessness.
The Department said it was aware of the impact of such moves, adding that they only take place where absolutely necessary.