B.C. court dismisses challenge to 229 rental homes approval in Vancouver's Cambie Corridor
Justice Morellato found the City Council's rezoning decision was reasonable and the approval process fair. The project will replace upscale townhomes with secured purpose-built rental housing.
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Justice Morellato of the Supreme Court of British Columbia dismissed a legal challenge to a 229-unit secured purpose-built rental housing project in the Cambie Corridor, ruling that the City Council's approval process was fair and the decision reasonable.
The Cambie Corridor Neighbourhood Association had challenged the rezoning of properties at 520-590 West 29th Avenue and 4510-4550 Ash Street, located about a 10-minute walk south of the Canada Line King Edward Station, half a block west of Queen Elizabeth Park, and one block east of BC Children's Hospital. The project includes two six-storey buildings and two townhouse blocks.
City Council unanimously approved the rezoning in July 2025. A development permit was issued in December 2025, with the final unit count at 229 rental homes (down from the initially approved 230).
The central issue in the case was the removal of a below-market rental housing component. The Transit-Oriented Area (TOA) policy required at least 20 per cent of net residential floor area as below-market rental housing, defined as rents at least 10 per cent below Canada Mortgage and Housing Corporation (CMHC) citywide average. Sightline Properties, the local developer, initially proposed below-market rental units in its rezoning submission. However, city staff recommended approving the project entirely as market rental housing, concluding the rezoning would not create enough additional land value to support below-market rents. Staff also noted the site's existing zoning already allowed more density than many other properties in the TOA. Justice Morellato upheld the city's decision to proceed without below-market rental homes.
Sightline's pivot to rental housing follows a market shift. The company originally planned 46 upscale townhomes with anticipated prices of $2 million to $2.3 million each after obtaining permits in 2022 and demolishing previous single-family houses. Construction had begun with excavation when a weakening housing market left Sightline without pre-sales. The shift to secured purpose-built rental housing also followed provincial legislative changes encouraging residential density near SkyTrain stations.
Why did city staff recommend removing the 20 per cent below-market rental component when the Transit-Oriented Area policy required it?
How many of the nearly 4,300 properties across the Broadway Plan and Cambie Plan areas will face similar rezoning pressure?
We'll update this story as answers emerge.
The facts
How many rental homes will the project include?
The project will include 229 rental homes in two six-storey buildings and two townhouse blocks in Vancouver's Cambie Corridor.
What did the project replace?
The project replaced upscale townhomes that Sightline Properties had originally planned to build at prices between $2 million and $2.3 million each.
When was the rezoning approved by City Council?
City Council unanimously approved the rezoning in July 2025.
Why did the project shift from townhomes to rental housing?
Construction on the townhomes had begun with excavation when a weakening housing market left Sightline without pre-sales, and provincial legislative changes encouraged residential density near SkyTrain stations.
