A proposal by Housing New Zealand to subdivide and build on two vacant lots in South Dunedin would breach Dunedin City Council rules.
Housing NZ has applied to the council for consent to subdivide the properties at 78 and 80 Reid St into four lots, each between 242sq m and 280sq m in size, and build a two-bedroom, single-storey home on each.
Only one of the four lots - located in a residential 2 zone - would have street access, with the others reached using a right-of-way that would be created, a report by council planner Kirstyn Lindsay said.
The proposed development would not meet the requirements of the council's district plan, which required minimum lot sizes of 300sq m, her report said.
Four submissions were received, including two opposed to the development concerned a Government department was proposing to break the council's rules on housing density.
Opponents were also worried about the impact on parking and other infrastructure in the area.
Despite that, the council report recommended granting consent, subject to conditions, because smaller lots and higher-density development were common in the area.
Many of the adjoining properties were already developed to a density greater than that allowed by the council's plan, her report said.
The consent hearing will be held today.