Vancouver's new NPA-dominated city council has voted to roll back the amount of social housing at the large-scale residential development in Southeast False Creek.

The last council had approved plans for a three-tiered project – with an even split of market, middle-income and social housing.

Southeast False Creek development area (Courtesy: City of Vancouver)
Southeast False Creek development area (Courtesy: City of Vancouver)

But Mayor Sam Sullivan says it's unacceptable for the city to sell its most valuable land at a discount to attract developers who can meet those targets.

"The last council was unable to achieve even the 20 per cent on North False Creek. I think the rate is down to 16 per cent. But I agree that we need as much social housing as possible within the principle of sustainability."

On Tuesday night, council voted along party lines to sell the land along Southeast False Creek between Science World and the Cambie Bridge at market value.

That will likely mean no subsidies for 80 per cent of the units – with social housing clawed back to 20 per cent, and units for middle-income people eliminated.

That's not what Sean McEwan had in mind when he helped pioneer the vision for the project a decade ago. "It shouldn't be just the very rich and the disadvantaged living in this area. It should very much be a mix of different incomes."

It's estimated the city would have lost about $36 million from the development unless the amount of subsidized housing was reduced.

A short-list of developers for the land will now be notified that the project they bid on has changed.