Vancouver city council is being asked to approve a $1.2 million subsidy for a market rental project in the Hastings Sunrise neighbourhood.

The financial support is the form of an exemption in the payment of development cost levies or DCLs.

The proposed starting rents will be within the means of those with incomes ranging from $60,000 to $149,999.

This measure is based on the definition of affordable housing as shelter costs equal to less than 30 percent of total before-tax household income.

According to a staff report to council, projects that meet the city’s DCL bylaw definition of ‘for-profit affordable rental housing’ are eligible for a DCL waiver.

The bylaw states that ‘for-profit affordable rental housing’ means housing where “all dwelling units in the building are rental units”.

“This application will contribute towards the targets for purpose-built market rental units and units for families,” according to the staff report.

Council on June 11 will hold a public hearing on the rezoning application for the rental project at 708-796 Renfrew Street.

The development consists of two five-storey buildings with 73 units.

The proposed market rents will start on June 11, the day of the public hearing. The developer can increase rents yearly during construction.

The starting rents are $3,235 for three-bedroom units; $2,457, two bedrooms; $1,869, one bedroom; and $1,607, studio.

"The applicant has requested and qualifies for a waiver of DCL fees for the residential floor area...in exchange for meeting maximum average rental rates and unit sizes," according to the staff report.