Sinn Fein, DUP and UUP members of the council's planning committee have rejected plans to develop a new social housing scheme in L'Derry.
A total of 54 residential units including a mix of two, three and four bedroom homes and apartments were planned to be built on the Springtown Road above Sheriffs Glen.
SDLP Derry Councillor Shauna Cusack said she is "severely disappointed" with the other members decision.
She said: "I understand there were technical issues in planning, however I was sure that these could be overcome given the strong need for social housing in the area. Indeed some who voted against the plan did not attend the pre determination meeting with the applicant where any concerns could have been ironed out.
"All councillors should have seen fit to let the scheme progress. With recent figures from the NIHE confirming over 2000 people homeless in this area, we need to advance projects like this which received absolutely no opposition or objection from the local community."
(CD/LM)
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