Councillors in South Kesteven have been recommended to approve a plan for 25 apartments and townhouses in Bourne.
The proposals were submitted by Gravitas Housing Ltd for land at Wherry’s Lane in the town.
Under the plans, 20 new apartments and five townhouses would be built on the site.
Planning officers at South Kesteven District Council have recommended that the application is approved.
Members of the authority’s Development Management Committee will meet on July 24 to make a decision on the proposals.
However, the application has been met with objection from Bourne Town Council, which said the development would not be in keeping with the local area.
The council added that there would be limited parking for the site.
But, the applicant said that the proposed development would be aimed at first time buyers, as well as those wishing to downsize.
In a letter, Gravitas Housing said that the plans would help to revitalise Bourne town centre.
It said: “Gravitas was established to support the delivery of market housing in the district and to do this on a commercial basis.
“The Wherry’s Lane scheme proposals and housing mix has been developed following the analysis of demand for market housing to support town centre living and improve the vitality of Bourne town centre.”
A section 106 agreement would be required for the development, including contributions to local healthcare and affordable housing.
This would include £454,000 for provision of affordable housing off site and £11,000 towards local NHS services.