Developers behind a proposal to create a 21-site estate in central Cobargo argue it will assist with the lack of housing in the region.
However, the plan is causing consternation among residents who are questioning the small lot sizes and the potential for congestion.
The site at 5 Village St, with the Cobargo Hotel to the north and Narira Creek to the east, is 1.05ha of vacant land owned by Darren Klower's Investments.
A development application currently before Bega Valley Shire Council (BVSC) proposes to create a 21-site manufactured housing estate (MHE), where the sites range in size from 150sqm to 280sqm and would have two or three-bedroom dwellings.
The statement of environmental effects by the DA's applicant Garret Barry Planning Services (GBPS) is available on BVSC's website.
When discussing its compliance with planning controls, GBPS stated the estate would add accommodation and diversity of accommodation to an existing settlement in a way that will integrate with Cobargo.
"The MHE will be a new form of accommodation for Cobargo and has proven popular for retirees and lower to middle income households in other parts of the shire. It will add 20 reasonable cost dwellings to supply," it said.
"While not true 'affordable housing', the price range for a moveable dwelling and annual rental is within middle to some lower income groups' range.
"It is a form that will likely be more affordable than a standard Cobargo dwelling on a full village allotment.
"A proportion may be let by the developer - adding to the range of affordability and rental accommodation."
The statement concludes: "Minimal adverse impact on existing Cobargo residents is envisaged".
The proposal has generated discussion in Cobargo's community.
On social media many have commented on the small size of the sites and the impact it could have on the village, with one person saying: "That looks like something that will destroy the beauty of Cobargo".
Resident Eddy Stulpinas wrote to the Bega District News to say he believed the MHE would become "a congested overpopulated site - with heavens knows how many people, animals, waste bins, pollution, cars and noise".
"[The] traffic congestion will become a nightmare for all the people living in this area and for people trying to access and leave the Cobargo pub rear parking area. And especially for the elderly people living in the retirement village and for all the new tenants on Lot 5," he said.
However, other residents have also commented about the need for affordable housing in the region.
A BVSC spokesperson said regulations specify a dwelling site within the MHE must have an area of at least 130sqm.
The spokesperson said the advertising period in which public submissions can be made has been extended to December 11.
"Council's assessment from that point will include collating all of the feedback received to enable assessing officers to determine whether any additional information is required from the applicant and whether the issues raised can be dealt with through amendment of the application or conditions of consent," they said.
"Council officers will then form a view about whether the application should be approved, and, if so, under what conditions.
"Anyone who makes a submission during the notification period will be advised of how their concerns are to be addressed (generally as a summary response to submissions rather than individual responses) and council's intended course of action in relation to the development application."