Residents in the Dublin 3 suburb had expressed concern over the plan to house up to 50 residents in a former nursing home on Haddon Road, beside Clontarf Promenade.
La Verna was sold last year and had been lying vacant before a plan was lodged to Dublin City Council by a company called Osdale, which applied for a change of use for the building.
This was green-lit by the council in July, which deemed it exempted development. The application said the Dublin Simon Community would operate the facility and use it to house those clients accessing its drugs rehabilitation programme.
However, in a statement to the Irish Independent, the Dublin Simon Community said it now no longer believed the site was suitable for its complex requirements.
Source: Melanie Finn, Irish Independent, 4th September 2019