Sinn Féin's Tony Hassan also said that a further 600 hundred new dwellings will be necessary over the next three years to combat demand.
Mr Hassan, the Housing Spokesperson on Derry City Council, said: "The situation is that bad in the city that if 500 new social homes became available today it would not solve the homeless problem that we face in the area.
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The councillor said he had approached NI Housing Minister Margaret Ritchie regarding the urgency.
"I asked the Minister what message could she give to the homeless people in the city and when would they have new homes of their own?
"Her answer was that Derry would get its fair share of social housing."
He said Ms Ritchie discussed potential housing developments at the former Rosemount Barracks, and the United Technology Site at Bligh's lane.
However, Mr Hassan said planning permission and full consultation is still necessary to progress the schemes.
"So in effect the Minister is promising nothing to the homeless people of the Derry area except for hope and optimism, which I don't think will put a roof over people's heads," he claimed.
(PR/BMcc)
