Over the development period, the province will receive proceeds, comprised of cash and non-market housing, with a total value of approximately $300 million.
The sales agreement includes a requirement for Holborn Properties to provide 234 new social housing units on the Little Mountain site. The units will replace the 224 units from the original Little Mountain social housing project and add 10 new units for the Musqueam people.
The province says former Little Mountain residents will have the first option to move back into the subsidized suites once construction is completed.
Construction on the first building, a five-storey building with 53 affordable housing units, is expected to wrap up in 2015.
Little Mountain, at East 33rd Avenue and Ontario Street, was built in the early 1950s for families of Canadian veterans returning from World War Two. But most of it was demolished in 2008 despite waves of protests from housing advocates.