A proposal to build more than 700 houses on the North Lismore Plateau has been rejected by the Northern Regional Planning Panel because the application was considered incomplete.
The rejection comes as residents in flood-ravaged Lismore say they are in the grips of a housing crisis.
Panel chair Paul Mitchell told a determination meeting that virtually every aspect of the $39 million housing proposal needed further work but he had not ruled out future development on the site.
"I'm sure we'll see some residential development on the plateau," he said.
"The issues are not insurmountable, but this development application wasn't complete in the sense that it didn't answer key questions, such as whether landslip issues could be managed."
Lismore City Council had previously supported development on the plateau but in a submission to the panel recommended the project be refused.
The development of the site has been discussed for many years, with Aboriginal heritage and biodiversity listed as the greatest concerns.
Developers urged to submit again
Lismore City Council general manager John Walker said there was support for flood-free housing on the plateau.
"It's disappointing because we do need land, but any approval for DA (development application) must be fully compliant," Mr Walker said.
"You can't expect councils and planning authorities to approve matters without the necessary studies and reviews."
A report from the independent flood inquiry recommended urgently moving people out of high-risk areas on flood plains.
Mr Walker has urged the developers to submit a new application.
"We would certainly encourage them to do so, the plateau was a really important part of the future of Lismore. We'd encourage them to work with us to get that development happening," he said.
Consultants speaking on behalf of the developer told the panel they will now consider starting proceedings in the Land and Environment Court.
