The arms length property company set up by Cambridgeshire County Council – This Land Ltd – has submitted an application to build 100 homes at Burwell.
It is intended to be the first phase of a wider 350 home development for the village including a mix of two, three and four bedroom homes.
The company says the homes will have "a low carbon footprint and benefit from non-fossil fuel heating".
This Land says it will be offering around £1.6m to the community as part of a Section 106 agreement. This will include "a significant contribution" to the new Burwell to Exning cycle path and £29,000 for local libraries.
And This Land hopes to follow this up before Christmas with a revised application to build over 500 homes at Soham as part of the Gateway development.
Managing director David Gelling said: "Burwell is a popular village with a proud heritage and beautiful surroundings.
"Our proposal looks to complement and enhance this, transforming underutilised land with a range of eco-friendly homes that have widespread appeal - from first time buyers to families."
He added: "The scheme has significant benefits for all Burwell residents, including large areas of public open space and an area for a dedicated sport hub in future phases."
If approved the houses will be built on land at Newmarket Road and will include 25 per cent affordable homes.
The Burwell development will include a village green, play area for young people and what This Land describes as an "extensive network of pedestrian and cycle paths".
Mr Gelling said a further key benefit of the proposed development "will be to enhance biodiversity in the area, with the plans including careful planting of native hedgerows, wildflower meadows, swales, and ponds".
He said: "The benefit that we are delivering for the local community doesn't stop there.
"Because our sole shareholder is Cambridgeshire County Council, the revenue that we return to the council supports the delivery of vital front-line services for Cambridgeshire residents".
The planning application can be viewed by visiting www.eastcambs.gov.uk and searching for planning application 19/01578/RMM.
This Land is an independent company whose sole shareholder is Cambridgeshire County Council which has provided funding for the business.
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