Waterford Council must force landlords to engage with the HAP scheme, according to Fianna Fáil Councillor Jason Murphy.
The Housing Assistance Payment is provided by local authorities to tenants, who can then source their own accommodation.
Councillor Murphy says there are many landlords in Waterford refusing to engage with the scheme and it's putting immense pressure on families.
He queried if there was anything the local authority could do to.
However Director of Housing Services Ivan Grimes says the council cannot compel landlords to accept HAP but, he said, it was against the law for them to discriminate.
Ivan Grimes advised complaints to be directed to the Workplace Relations Commission.