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The scheme allows people who are in mortgage arrears to remain in their homes and pay rent to an approved housing body.
Clúid Housing and Cork City Council have purchased Leeside Apartments.
The criticism comes a week after the minister announced a number of new measures to address the crisis.
A new report assesses the scale and impact of stigma on social housing in Ireland.
The ‘bad bank’ has identified almost 7,000 properties that are potentially suitable for social housing, with demand being confirmed for over 2,700.