A 34-lot subdivision at Ravenswood has been approved by the City of Launceston council.
The Chapple Street development includes a road lot and footpaths to provide access to local shopping centres, community facilities and bus routes.
Councillors approved the application unanimously, supporting the affordable housing idea.
Councillor Hugh McKenzie said the vision of the subdivision worked because of the inclusion of paths to public transport.
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There were three representations against the proposal, raising concerns about the block being "very rocky", with blasting possibly resulting in damage to neighbouring houses.
However, the council said that is a matter out of their control, with the developer having to abide by Work Safe Tasmania requirements.
Concerns were also raised about increased traffic in the area. Councillor Rob Soward said any activity at the site would make it busier than it is now, which was normal for any subdivision.
The council's infrastructure and engineering team assessed the application and said the road has sufficient capacity to cope with additional traffic.
Councillor Andrea Dawkins was not at the meeting.
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