The aim is to have an initial 22 units in place by December with a further 128 units to follow through a fast-tracked procurement.
350 units will be provided through a national procurement framework overseen by the office for Government procurement.
Environment Minister Alan Kelly said: "The housing market in Dublin was ruined during the recession and this sector is not recovering quickly enough to keep up with demand. Therefore, as a temporary measure while supply is coming on stream, I will be funding the delivery of 500 modular units for families in Dublin experiencing homelessness.
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"Modular units can offer a much better quality of life than a hotel while families are waiting to be housed in more permanent settings. The families that avail of these will continue to have the full set of supports available from homelessness services. They will not be considered to be housed by the local authority, they will remain 'homeless' for statistical purposes but they will be in a better environment where their family life will be minimally disrupted. The homes will be built to all necessary building standards with the sites being selected on the basis of access to community infrastructure and services."
(CD/MH)
