Plans to build new homes on one of the biggest brownfield sites in Sussex could be knocked back because the land has been earmarked for employment and business.
Developers are trying to gain permission for more than 300 homes as part of the bid to regenerate Shoreham harbour.
The two schemes also include offices and live-work units and would create local jobs while they were being built.
The port's Sussex Wharf has been targeted by developers Wilson Connolly Southern for 298 homes, nine live-work units, six industrial units and a shop.
The company would also provide a shop, public open space, a promenade fronting the River Adur and new roads and parking in Harbour Way.
In addition, Bovis want to build 19 homes and eight offices with landscaping and parking at South Wharf, Harbour Way.
Both firms have submitted applications due to be decided by Adur District Council's planning committee on July 21.
The council recently carried out a survey which showed more than 500 affordable homes a year were needed to meet Adur's housing needs.
The biggest scheme has 75 affordable homes, including 15 three-bedroom terraced houses and 31 two-bedroom flats.
The Bovis development is below the size which requires affordable homes to be provided.
However, officers are recommending that both schemes should be refused because the two sites have been identified in the Local Plan for employment and business use.
In a report on the Sussex Wharf scheme, they said: "It lacks a sufficient amount and variety of employment-generating floor space and would also result in the loss of existing employment provision.
"It does not contain enough affordable housing for a site of this size and the construction, layout and public space would not create an environment of sufficient quality."
Thousands of new homes will be built in other parts of the harbour over the next 20 years as part of the Shoreham Maritime Strategy It identifies areas for housing and light industry, including a media village, business and leisure facilities.
Bovis has already built hundreds of homes in the Anchor Close area off Harbour Way as part of the project.
Barclay Homes is now building more than 200 homes on the Ropetackle site.
The development is part of the latest phase of a programme designed to breathe new life into Shoreham harbour.
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