The Dublin assistant city manager, Mr Philip Maguire, has said the city is "most grateful" to the Sisters of Charity for three acres of land at Merrion Road in Dublin.
The nuns have donated the land to provide housing for older people, those with disability, and people in local authority housing whose families are reared and who may be seeking smaller accommodation.
Mr Maguire described the gift as "a very generous donation" of "these very valuable three acres". The site will be used to build between 90 and 100 units.
The Sisters of Charity are also to donate their two nearby convents and grounds to St Vincent's Hospital, which is run by the order. This property in intended to assist "the further development of the hospital".