The Hawaii Community Development Authority voted Wednesday to reject the project in Kaka'ako known as 803 Waimanu.
There has been controversy over the development of the high-rise that would be three times the current height limit for the area.
Opponents say the area is too small and a high-rise would block the view of nearby residents.
Those for the project want to bring in 192 affordable housing units.
The HCDA made the decision after hearing public testimony Wednesday. The developer has until July 15 to appeal.
We will have more on this story tonight on KITV4 News at 5, 6 and 10.