A number of families and individuals have been forced out of their homes after the blaze in a carpark beneath an apartment block on Rosemount Lane.
The local authority was accused of doing nothing to help those effected.
In a statement the council says that since the fire last Thursday, residents were accommodated at Dillion's Hotel and those who presented to the council are being accommodated there until tomorrow.
Yesterday, one resident, 'Magda', was critical of the council for not helping the families affected - she said the majority are Polish and suggested that the council would be more inclined to help if they were Irish families.
The council says there are up to 20 one and two bedroom apartments available in Letterkenny and says residents have been advised to seek alternative private rented accommodation until their apartments are available for occupation again.
The residents are advised to keep in touch with the council regarding their individual situations.