Fredericton city council approved the building of a controversial subsidized housing project on Dundonald Street Monday night.

The Fredericton Non-Profit Housing Corp. wants to convert a two-storey building into six apartment units.

City councillors voted 5-4 to rezone the property to allow the construction to proceed.

The project is opposed by many homeowners on Dundonald Street who contend that the project would bring more traffic to the neighbourhood and destroy its family ambience.

"Save our street signs" have been popping up throughout the neighbourhood for several weeks.

There are also fears the apartment building will open up the city's historic downtown to more development.

"The secondary plan zoned that for two [unit buildings]," said street resident Kim Howland.

"If you're going to change that to a six-unit, then you're going to open the whole Town Plat to change," Howland told CBC News. "This can be a challenge that other developers can use. 'Well, they did on Dundonald Street.'"

The changes to the zoning are being done within the current rules, said Coun. Mike O'Brien, chair of the city's affordable housing committee.

"There's part of the municipal plan that deals with the protection of residents and density," said O'Brien. "The other part envisions that in appropriate locations, affordable housing should be strongly considered. So it's a balancing act."

There are 382 people waiting for subsidized housing in Fredericton.

"Basic affordable housing is a basic human right," said O'Brien.