Plans to build 39 new homes on a public car park in Lancaster city centre have been recommended for approval.
The scheme at Nelson Street will provide 35 apartments and four town houses, as affordable housing, should the proposals get the final go-ahead.
Lancaster City Council planning committee is expected to make a final decision on whether to grant planning permission, at a meeting on Monday October 27.
The application is for four dwellinghouses, two four-storey apartment blocks and one two-storey apartment block with associated parking, landscaping, public realm, associated infrastructure and alterations to the canal wall.
The scheme would be made up of 32 affordable rented homes, and seven shared ownership homes, with a mix of house types including one, two and three-bedroom.
A Lancaster City Council report, which recommends that the scheme be approved, describes the plans as the "first step in the delivery of a wider reaching regeneration objective for the Canal Quarter area".
It also says there remains a "significant shortfall" in housing supply in the Lancaster and Morecambe District.
"Furthermore, there is an acute undersupply of affordable housing within the district," says the report, published this week ahead of the meeting.
"The proposal would deliver a 100 per cent affordable housing development, to include the provision of 39 dwellings to meet a mix of affordable housing needs and tenures.
"This would to a degree help address the significant shortfall in the five-year housing land supply position and, perhaps more importantly, the acute undersupply in affordable housing.
"The proposal will also result in the redevelopment of an existing brownfield site and will provide the catalyst to unlock the wider regeneration opportunities set out within the Canal Quarter Masterplan.
"The proposal represents an inclusive and sustainable design that successfully incorporates and enhances existing pedestrian linkages and secures new pedestrian linkages to the canal towpath, to the benefit of residents and the wider community.
"Attractive on-site open space along with highly sustainable and adaptable accommodation lie at the heart of the scheme and will promote a healthier and sustainable place for future residents and the existing community."
The new housing is part of Lancaster City Council's long-held ambition to develop the Canal Quarter area of the city, transforming derelict and underused land into a brand new neighbourhood.
There are also longer-term plans to build on car parks on St Leonard's Gate and Edward Street.
Pans have been opposed by residents and Lancaster business owners, who are worried about a potential loss of parking spaces.
The planning committee meeting starts at 10.30am at Morecambe Town Hall and is open to the public.
Read more: Plans go in for 39 new homes on Lancaster city centre car park - Beyond Radio
New strategy approved for Lancaster city centre car parking - Beyond Radio
Investigation closed into prisoner's death at Lancaster hospital
LISTEN: How Lancaster life coach aims to spread Christmas cheer this year
Lancaster schoolgirl's design wins Mayor’s Christmas card competition
Heysham Power Stations worker wins coveted Apprentice of the Year award
Iconic former Morecambe hotel and nightclub set to go under the hammer
Record-breaking funding expected for Morecambe events and festivals
Police release video clip as search for missing Lancaster University student continues
TV star Brian Cox pays a visit to Lancaster’s Police Museum
Morecambe Football Club confirm details of Fans’ Forum
Multiple people treated after carbon monoxide leak at Morecambe address
Heysham Power Stations alarm tests planned for Christmas Day and New Year's Day
LISTEN: St John's Hospice in Lancaster set for 40th anniversary year
Second earthquake in a month shakes Lancaster and Morecambe Bay
LISTEN: Lancaster Samaritans are there for you at Christmas
WATCH and LISTEN: Lancaster band's new music video for song written by Morecambe schoolchildren
Safer Pod launched to make Lancaster safer during ‘Winter of Action’
Police make two arrests after pedestrian critically injured in Morecambe hit and run
D-Day war hero, 101, to receive Freedom of City of Lancaster
LISTEN: Beyond Radio helps Santa deliver presents from annual Christmas Toy Appeal
Modern day mixtape to help fund reopening of Lancaster music facility
