The Housing Minister has reappointed Conor Skehan as chair of the Housing Agency.
The Department of Housing said the move is temporary, and he will only stay in the role for up to one year until a suitable replacement has been found.
Mr Skehan will now continue in the role until the end of this year.
He had faced criticism earlier this week after claiming that some homeless people could be 'gaming the system' to get housing.
However, there is no evidence families 'gaming the system', according to Housing Minister
"He advises on Government policy and how he thinks it might be impacting. It's fair enough that he can do that, that is his role. It is not for me to criticise him for doing that, it is important that we have different voices in this debate," he said earlier this week.
"I have no evidence in my Department of people presenting or trying to 'game the system'," he added.
However, Minister Murphy said Mr Skehan may have been referring to the previous Government's policy.
"Conor was saying that that may have been an unintended consequence of previous Government policy. My commitment is to make sure that we build as many homes as possible," he added.
Responding to the news, ICHH CEO Anthony Flynn said: "The thoughts of allowing Mr Skehan to remain in his position until November, or later if a replacement is not found, is absurd.
"He has continuously criticised the whole homeless sector since news of his original departure broke late last year.
"Skehan has failed to be productive or progressive in his role and has tarnished himself as Chairman of the Housing Agency. He has been quick to point the finger of blame at the victims of the homeless crisis while failing to acknowledge his own failures as chairman of the housing agency. In my opinion he must go."