Kerry County Council is being called on to designate a specific area as a pilot for the Repair and Lease Scheme.
Fianna Fáil councillor Michael O'Shea raised the issue at the monthly meeting of Kerry County Council.
He says operating a pilot scheme in one designated small town or village would get rid of dereliction.
The Repair and Lease Scheme was introduced under the Rebuilding Ireland Action Plan to assist property owners in bringing vacant properties back into use as social housing.
Councillor Michael O'Shea says every area of the county is now riddled with dereliction.
He says he is aware uptake to the scheme has been very poor, but feels the scheme could be used wisely to tackle dereliction.
Cllr O'Shea believes if the issue could be wiped out of one street or area that it would help tackle the problem.
Kerry County Council acknowledged there's been slow take-up of this scheme nationally, adding many property owners felt it was not user-friendly and there were other costs associated that were not covered.
The Government increased the funding allocation from €40,000 to €60,000 in order to improve the uptake of the scheme.
The council says it's previously advertised for expressions of interest and will be advertising again; it says given the current demand it's not necessary to confine to any specific location.
Kerry County Council's vacant homes officer is also actively engaging with owners of vacant properties in locations where there is a housing need, it adds.