Ground was broken Friday morning on what will be the final phase of the Apple Valley development on Benvoulin Road.
The nine-storey apartment, being built in partnership between the Society of Hope, City of Kelowna and both senior levels of government, will include 122 affordable, energy-efficient rental homes.
The mix of one and two bedroom units will provide rental housing for moderate to low income individuals, families, seniors and people with disabilities.
Dubbed Capstone, this is the fourth and final building to be included within the Apple Valley development.
The other three buildings, also operated by the Society of Hope, incorporate another 200 units of housing.
"Capstone completes a 25-year vision of the society to bring well-located, affordable homes to the midtown area of Kelowna," said Society of Hope president Phillip Lambert.
He adds the land for the entire Apple Valley complex was provided to the society through a donation by Gordon and Helen Ziegler in the 1990s.
"It's great the city was able to help reduce the costs of building Capstone, keeping the housing units more affordable," said Mayor Colin Basran.
"By waiving $300,000 in development fees, the Society of Hope and BC Housing were able to go ahead with another 122 homes for Kelowna residents at a time when we have a serious need for more affordable housing."
Homes are expected to be ready for occupancy in the spring of next year.