The Garda Economic Crime Bureau is to look at issues around the deal after the university contacted gardaí about an alleged overpayment for the homes.
It is also to be examined for a possible fraud.
This garda team will determine if there are criminal matters which warrant further investigation.
UL wrote to gardaí earlier this week about the issue.
The university has a statutory obligation to report such concerns to gardaí and did so in a letter addressed to Henry Street Garda Station in Limerick city.
While the garda’s work on the matter is at an early stage, and no criminal investigation is underway, UL’s concerns are being taken seriously.
UL bought the homes from Silvergrove Developments last year for €11.44m.
However, there has been much scrutiny of the deal after a value-for-money exercise showed UL overpaid for the homes by about €5.2m.
Students moved into the houses last year despite UL not having planning permission to do so.
The homes were granted planning permission in 2018 for use as social housing.
Limerick City and County Council has warned UL it is in breach of planning rules by housing students at the development, risking a fine of up to €12.7m.
UL’s governing authority, a board responsible for planning and policy decisions, approved spending €10.88m on the homes in August 2022.
However, this contract was later amended to €11.9m without the governing authority’s (GA) knowledge.
The contract was later negotiated down to €11.44m after UL agreed to pay the developer upfront and ended a rent share agreement.
Public records show this contract was paid last October, but UL was subsequently landed with a higher than anticipated stamp duty bill, bringing the total cost of the homes to more than €12.5m.
This means UL spent €630,000 each on the homes, twice the rates typically seen in the area.
Due diligence and governance questions have been asked of the university in light of the issues around the deal.
The Higher Education Authority (HEA) has ordered a review of the purchase and it will have officials in Limerick for three days next week to draw up its terms of reference.
Potential conflicts of interest, governance, oversight and the cultures at UL will be examined as part of this HEA assessment which will also look back over other unrelated UL acquisitions over the past 15 years.
UL said it would not comment on its letter to gardaí but has previously said it is working with the HEA to chart the best way forward for the university.
