The cost of bringing damaged housing at Priory Hall in Dublin up to standard will cost €17m more than originally envisaged.
Last year Dublin City Council decided to refurbish the apartment complex, instead of demolishing it. The units are known to be fire hazards. The Council set aside €10m for the project.
The Irish Times reports redevelopment work at the site in Donagmede has begun but construction has revealed a string of problems - including the presence of pyrite - which is pushing up the cost of project.
Property owned by rogue developer Tom McFeely will be sold off to offset some of the cost.