Louth Town Council has thrown its support behind an application to build 57 new homes in Ramsgate Road.
The plans, pictured, have been submitted by Westleigh Partnerships Ltd.
A similar application was made last year, but planning permission was refused by East Lindsey District Council due to concerns over the impact to neighbouring properties in Station Approach.
At the latest Town Council meeting, Mayor Coun Andrew Leonard said: “The way they’ve rehashed it is very much a better layout.
“There’s a bit more of a spacious feel to it and less crammed in, so we’re quite happy to recommend this.”
Coun James Pocklington raised concerns that the Sustainable Drainage Systems (SUDS) scheme may be inadequate, but councillors voted to support the application on the understanding that the drainage authorities will ensure that the required standards are met.