The Ontario Municipal Board has ruled on the side of a developer who wants to build a nine-storey private student residence in Ottawa's Sandy Hill neighbourhood.

Viner Assets proposed building the 180-unit residence at Laurier Avenue East and Friel Street, and received the approval of city staff and the city's planning committee.

But Ottawa city council rejected it last March because they felt the building didn't fit into the surrounding low-rise neighbourhood, and because the planned Confederation Line will mean students won't necessarily need to live so close to the University of Ottawa campus.

The community group Action Sandy Hill also opposed the building.

But in a decision released earlier this week, the OMB said the residence will "serve the neighbourhood well" and will "contribute to the creation of a complete community."

The OMB found the city's argument about future transit options "did not justify refusal" of the project.

The board also found the building, which will house some 600 students, will help alleviate pressure on the surrounding neighbourhood, where many single family homes have been turned into overcrowded bunk houses.

The OMB also rejected heritage arguments against the proposal because the only building near the site with heritage status will be preserved.

"The city is reviewing the decision. Next steps, if any, will be determined in the coming days," said John Moser, the city's general manager of planning and growth management, in an emailed statement on Friday.