An 18-storey block of flats can be built after three attempts by a developer to secure planning permission.
A proposal for 164 apartments at Sayner Lane in Hunslet was agreed after Leeds City Council was offered an increased financial contribution.
The project was first deferred by the City Plans Panel in May after no affordable homes were offered.
Eight discount rents were then included by housing firm Countrylarge Ltd, but members were not satisfied and raised further concerns over a lack of grassed space at a July meeting.
On Thursday (7 August), councillors were told design changes had been made and almost £207,000 would go towards green space improvements in the city.
Panel member Colin Campbell said: “I think the whole process we have been through is an important lesson for developers.
“Because we expect the best of designs, the best of facilities. We expect the flats to meet the standards we have set.”
Cllr Campbell, who represents Otley and Yeadon, has criticised housing developers’ use of financial viability assessments to show discount rents cannot be provided.
He said: “If it’s not viable, why are you doing it? The answer is we do it because we can make it viable if we don’t meet council policy.”
The contribution to off-site green space improvements was up from the £31,860 first offered. Cllr Campbell pointed out there was little green space within the Sayner Lane scheme itself.
Farnley and Wortley Green Party member David Blackburn raised concerns that discount rents at 80 per cent of market rate were not really affordable.
But he said: “I’m still not happy with this but I think we’ve pushed it as far as we can.
“Let this be a warning to developers. Come with something that’s not quite policy and we’ll make you take it away.”
Councillors unanimously voted to defer and delegate approval to the chief planning officer, subject to legal agreements.
