The residents of Longboat Quay in Dublin Docklands have been given an extra 18 months to carry out €4m in fire safety works.
Failure to do so could result in around 900 residents being asked to leave their homes.
Serious fire safety issues were identified at Longboat Quay last year and Dublin Docklands Development Authority (DDDA) spent €1m on the fire alarm system.
However, another €3.9m is needed to upgrade fire walls and smoke vents before Dublin Fire Brigade will consider the building safe.
Last month, the residents were issued with a fire safety order and given until the start of this month to carry out the necessary works.
They argued this was not enough time and the deadline was extended today until the end of May 2017, on condition the work gets underway during 2016.
Counsel for Dublin City Council raised concerns about any delays and told the court it will "continue to be a potentially dangerous building" until the work is finished.
A full hearing on who should pay for the works will be heard next year.