A Bundoran councillor has called for an independent report into whether large-scale apartment blocks built in the town in recent years should be able to avail of lucrative tax schemes.
Bundoran UDC councillor Mr John O'Donnell said it was feared that many of these developments would become the eyesores of the future.
Since the seaside resort tax scheme came into operation, some 200 apartments and 150 houses have been built in Bundoran.
Another application is now with Bundoran UDC, and Mr O'Donnell said he would call at the next meeting of the UDC for all such applications to be put on hold until a report into the long-term viability of the developments was completed.
Mr O'Donnell said it was feared that if the developments did not generate sufficient rental income, there would be little incentive for absentee owners to maintain the properties.
Most of the new developments are built in prime locations, some blocking views of the sea, and if they were not well maintained, the appearance of the town would be ruined.
For local people, it was becoming increasingly difficult to buy a house because the tax scheme developments had distorted the market. Houses that would have been sold for £60,000 were now being bought for as much as £100,000.
Mr O'Donnell said he was also concerned about the quality of some of the recent building.
Elected to the UDC this summer, Mr O'Donnell said that as far as he could see, Donegal planning officials had let the process work on "a free-for-all" basis. "It seems the way things work is that you build, then apply for retention and then you are in," he said.
Large developers were operating in this way, he said, and no retention application had been turned down. Yet at the same time, individuals who wanted to build extensions to their homes were having "every avenue closed to them", Mr O'Donnell said.