The panel said the designer, Gosford-based ADG Architects, had tried to fit too many storeys and units into the 13m height limit for the site at 4 Bourke St, Fairy Meadow. This “compromised the internal amenity of the small living spaces”.

It did not comply with required setbacks of 6m, with balconies and parts of the building encroaching.

Residents had complained the plan had only six car parking spaces for 28 rooms (47 beds), and would cause shading and privacy problems.

But council’s development assessment planners had recommended it be approved, after telling the designer to go back and improve the proposal. With more trees promised for screening, better landscaping and improvement of the design, council planners said the problems had been resolved.

But IHAP said while a boarding house could be suitable for the neighbourhood, this one was not.

“The panel is of the view that the scale and siting of the building is not compatible with either the existing character or the desired future character,” IHAP said.

“The combination of the response to flooding and maximising yield and allowable height has resulted in a compromised design outcome evident in, among other matters, the proposed roof form and minimal floor to floor height.”