The state body responsible for delivering affordable homes will review a landmark site in Killarney to see if it’s suitable for house-building.
Kerry County Council has said the Land Development Agency will progress its assessment of the former St Finan’s Hospital site.
This will be done in conjunction with the local authority.
Kerry County Council was responding to a question from Cllr Maura Healy-Rae at yesterday's meeting of Killarney Municipal District.
Killarney MD manager Martin O’Donoghue said refurbishing the St Finan’s site, if this is feasible, could cost up to €100 million.
Management said it would be a huge challenge to redevelop the former hospital.
Cllr Brendan Cronin was concerned that if nothing is done, the St Finan’s site would be sold to a private developer.
Cllr Niall ‘Botty’ O’Callaghan said people were worried that the building will be left fall to rack and ruin.