NEWCASTLE City Council has approved a controversial block of 24 bedsits at Islington despite concerns about the project's design.
Acting lord mayor Brad Luke used his casting vote to determine the matter, after councillors were locked at six-all.
The four-storey development, to be built by Compass Housing, is the first of several affordable housing projects slated for the area.
Cr Michael Osborne earlier sought to have the development deferred to allow mediation talks between the developer and the residents to conclude.
Several councillors expressed concern about development mix.
"At the moment it's 24 dog boxes," Cr Osborne said. "Affordable housing is good, but it's the quality that counts."
Cr David Compton said the project was urgently needed to accommodate the large number of single, displaced people living in the city.
Council staff recommended the development be given deferred commencement approval subject to further modification.