Councillors were divided on the controversial project, which has been debated many times since being identified as a major issue by the council in 2005.
The project is an initiative requiring new developments to provide a component of affordable housing or in the alternative pay compensation through the council to be administered by the Community Housing Trust.
The aim is to provide accommodation that will assist in keeping people in the district and help build a stable workforce.
Yesterday councillors were asked to vote on the recommendations of a two-day hearing in August, which would require a change to the district plan, but after a spirited debate there were five against the project proceeding and four in favour.
With Cr Leigh Overton absent, Mayor Geddes used his casting vote to ensure Plan Change 24; Affordable and Community Housing was put out for public notification.
Affordable housing has been subject to public information sessions, submission processes, a resource consent hearing, and the subject of the Hope (Housing Our People in our Environment) Strategy, formed to address the shortage of affordable housing in the district in 2006.
The plan change has drawn significant criticism from developers, some of whom felt it would ultimately drive housing prices up, by increasing compliance costs for developers and reducing their profit margins.
Yesterday, QLDC policy analyst Daniel Wells presented the final document to the council.
"The shortage of affordable housing and the effects this has on the community is a matter of some concern in the district," Mr Wells said.
"In the last Queenstown Lakes District Residents' and Ratepayers' Satisfaction and Opinion Survey, 71.4% of respondents said the council should have a key role in addressing affordable housing."
Those against Plan Change 24 were Crs Gillian McLeod, Vanessa van Uden, Cath Gilmour, Lyal Cocks and Mel Gazzard, while John Mann, John S. Wilson, John. R Wilson, Lex Perkins and the mayor were in favour.
