Dublin City Councillors secured an agreement with Minister Alan Kelly at a scheduled meeting on Thursday.
There are currently 950 vacant housing units in the city that are in need of refurbishment before they are habitable.
The Minister now agreed to demands from Dublin Councillors to immediately invest in bringing these units up to scratch by the end of the year.
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Fianna Fáil Leader on Dublin City Council Paul McAuliffe said: "It is completely unacceptable that we have nearly a thousand vacant housing units sitting idle in the city while there are so many homeless families desperate for somewhere to go. Many of these units need very little work to make them suitable homes.
"I welcome the fact that the Minister has now finally agreed to provide the funding necessary to open up these housing units to people on waiting lists. While the number is relatively small in terms of the housing that is needed, this measure will at least provide a much-needed home to nearly a thousand families and individuals by the end of the year.
"It is essential that the Minister keeps his word on this. Unfortunately we have seen all too many promises from Minister Kelly over the past few months that have resulted in nothing, and the housing and homeless crisis has got immeasurably worse."
(CD)
