Hundreds of hectares of Lake Macquarie bushland could be rezoned for a new community of up to 600 houses.
The proposal was put forward more than five years ago by Landcom, the government's land and property development arm, but has been moving at glacial pace due to issues around biodiversity, flooding and geotechnical matters.
The 265-hectare site is located off Toronto Road, opposite Woodrising and immediately south of the Main Northern Railway line and Billy's Lookout estate in Teralba.
It's understood the development could accommodate around 600 dwellings, between eight and 10 per cent of which would be affordable housing.
Landcom's rezoning proposal is up for public comment with Lake Macquarie City Council, after its first attempt stalled in 2022.
The current proposal will comprise a mix of freestanding housing, terrace housing and manor homes for affordable housing, as well as public open spaces, walking and cycling paths through the site.
Landcom has also indicated more than 70 per cent of the site would be preserved as bushland in perpetuity.
The full scope of the housing project will be developed once the land has been rezoned. A new proposal is expected to be submitted within the next 12 months.
"The project represents an opportunity to deliver additional housing supply as well as affordable housing in the Hunter region," Landcom stated.
Landcom first flagged the idea with council in 2019 and submitted the planning proposal in late 2021, which was subsequently withdrawn in 2022 to give it more time to respond to several issues and to conduct further site investigation work.
The original plans for the housing estate had its entrance at the Toronto Road and Enterprise Way intersection.
At the time, concerns were raised about the already congested Toronto Road would handle the additional traffic generated by the housing estate.
The site has been held by Landcom since 2001. A portion of it was developed almost two decades ago, however the larger section was affected by the Glencore coal mining lease, which ceased operations in 2015.
The organisation is consulting with several agencies and confirmed a submission pathway with the Department of Planning, Housing and Infrastructure.