The situation has been described as "inhumane".
Questions are being asked about why Ukrainian residents are being moved out of Sheperd's Huts at Toughers Restaurant, just outside Castledermot.
It follows reports that the former restaurant is being closed by the Department of Integration due to health and safety concerns.
However, speaking on Kildare Today, Cllr Vera Louise Behan said "there are no residents living in the restaurant".
She said she believes residents are being moved out not because of safety concerns but simply because of a "contract ending".
She has described the situation as "inhumane", arguing that children living on the Toughers site are settled in a school in Levitstown.
In a statement to Kfm, a spokesperson for the Department of Integration said: "Following an inspection by the Local Authority fire officer, it has been established that an extension of the contract to the end of January 2025 will be possible, if the provider fulfils certain conditions to ensure the safety of the people on the site. The Department has contacted the provider and is awaiting a reply in the next few hours."
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