The Regeneration Bill would have for the extension of powers to councils such as the power to address social need and carry out regeneration schemes.
Councillor Tim Attwood said it would also allow for the responsibility for Laganside to transfer to Belfast City Council.
He Attwood said: "The dreadful decision to delay the transfer of regeneration powers to Council completely undermines the reform of local government. The power of planning, community planning and regeneration powers go together and would have enabled Belfast City Council play an even greater role in shaping and regenerating our city centre and neighbourhoods.
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"Once again central government delay important changes and stifle our ability to make positive changes to our City. It must be remembered that the proposed reform of local government has been going on for 12 years and it is six years since the NI Executive agreed 11 Councils, now a key aspect of the reform is being delayed.
"It is another example of SF and DUP failing to get their act together. I understand there were issues with the Houses in Multiple Occupation aspect of the Bill and this was decoupled from the Bill. Now the DSD Minister says the Bill has timed out. Why could the Executive not agree accelerated passage of the Bill just as they are doing with the Education Bill?"
(CD/JP)
