A cash-strapped council wants to give away land so that it can meet its need for affordable homes.
Adur District Council wants to give a car park and adjoining land in one of its poorest areas to a housing association.
In exchange, Worthing Homes would build eight new affordable homes on The Courts estate off Stoney Lane, Southwick. Six council houses at Rectory Court in Arundel Close would be transferred to Worthing Homes.
They would be refurbished with new roofs, kitchens and bathrooms and bigger back gardens. Adur would then have the right to nominate some of the people on its housing list to become tenants.
If the scheme is approved, Arundel Close would be closed and a new access built from Stoney Lane.
The move has been welcomed by residents who have complained about noise and problems from speeding cars and mini-motorbikes.
Southwick and neighbouring Fishersgate are recognised as some of the poorest areas in Sussex.
A report to the housing committee states that by giving the land to Worthing Homes, the cost to the council of providing the access road would be £100,000.
Other options for providing affordable homes, which include not transferring the land to the housing association, could cost the council more than £425,000 in grants.
Paul Spedding, head of housing, will tell the committee there is an urgent need for affordable housing in the area.
At the end of December there were 1,493 people on its housing waiting list, including 324 who wanted transfers. Of those, 150 were in temporary accommodation or had been recognised as homeless through no fault of their own.
The council had only 196 vacancies for its properties last year and only 48 housing association properties were available, including 20 at Ropetackle.
In his report Mr Spedding states the Courts Action Group, which represents residents, has been consulted about the proposals.
Most were in favour of the project but further consultation will be carried out once the preferred option has been decided.
Mr Spedding said: "There is a clear requirement for the council to use whatever methods are available to increase the number of affordable homes to meet the assessed need. One way is to use land assets such as the car park at Arundel Close, which is underused."
The housing committee is being recommended to approve the transfer of land when it meets on Tuesday.
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