Immigration minister Marjolein Faber must continue to provide bed and board for 22 asylum seekers in Rotterdam who have been refused a residency permit but are still living in the port city.

Faber earlier announced she would stop funding for the emergency accommodation for refugees who have failed in their applications for refugee status from next year. There are five such shelters nationwide and the other four will still be funded by their city councils.

Judges have now ruled that the asylum seekers’ rights weigh more heavily than the minister’s right to stop funding. “Many of the people concerned, who will end up on the streets, have serious psychiatric or physical problems and it is not clear if there is anywhere else for them to stay,” the court said.

Faber said she would respect the law, given “that is how we do things in this country”.

Later on Friday the minister is due to publish three separate pieces of legislation as part of her plan to introduce “the strictest ever refugee policy” in the Netherlands.

On Thursday two MPs walked out of a parliamentary committee meeting where Faber was outlining some of her plans. They were angry that the minister refused to answer questions about what she considered “basic” accommodation for refugees to be.

A return to more basic housing is one of her key ideas to discourage people from applying for asylum in the Netherlands. Recently she vetoed plans to put up single refugees in a shared house, saying it was “not basic enough”.