OXFORD City Council is planning to build 17 affordable homes on a car park in Cutteslowe.
The authority wants to build the homes on a site next to Elsfield Hall which is currently occupied by a cadet hall and parking spaces.
The plan proposes six houses and 11 flats at the Harefields site.
They would be owned and run by the council.
The site currently consists of two office buildings and a prefabricated hut that is used by the TA cadets.
The council says it will supply the cadets with suitable alternative accommodation on site within existing vacant office space.
About 70 car parking spaces will be provided to prevent tenants from parking in the surrounding streets.
Scott Seamons, the city councillor in charge of housing
City councillor Scott Seamons, executive board member for housing, said: “This is an exciting proposal which would see an under-utilised car park transformed into much needed residential accommodation.
“The local community have made very positive contributions and have been able to shape the proposals from the outset.
“We have also worked closely with OPP, the business who occupy the adjacent office building, to ensure that they have also had input in to the scheme which will not prejudice their on-going operations.”
City councillor for Summertown and Wolvercote Jean Fooks said: “It is good to have more social housing and good to have some good-sized dwellings.
“Noise from the A40 is still a bit of a concern but a screen is proposed by the hedge to act as a barrier of sorts.
“I think there should be more on-site renewables – more solar panels on the roofs so as not to rely on some on the flat roof of the commercial building next door.”
The development forms part of round two of the city council’s 2011-15 affordable homes new build programme which has already seen 112 new social homes given planning permission last year.
A decision will be made by a committee of city councillors at a date yet to be set.
Elsfield Way Detachment executive officer Major Mark Batin said: “We are satisfied with their efforts to provide alternative accommodation; our relationship with the council, their agents and the other occupants of the site is entirely amicable.”