In 2008, elderly residents were moved out of Greyhound Opening in Norwich and senior city council officers moved in.
The council's head of neighbourhood and strategic housing, Kristine Reeves, was later sacked over the affair.
The development proposals, put forward by Norwich City Council, include 60 flats and 45 houses.
The report to the council says 35 of the houses and flats will be for social rent.
A report to Norwich City Council's planning committee, which meets on Thursday, advises councillors to approve the plans.
Elderly residents were moved out of Greyhound Opening and nearby Goldsmith Street seven years ago after Norwich City Council agreed to redevelop the site.
The council agreed that new employees relocating to the city could move in temporarily ahead of demolition.
However other staff, including Ms Reeves, also moved in, in contravention of council policy.
The council resisted calls for a full independent inquiry.
Its own investigation found safeguards covering conflicts of interest were in place but not followed.
In February 2009, London-based architects Riches Hawley Mikhail won a competition to design a new social housing development on the site, but they were never commissioned.
During that year homes on the derelict site were demolished, but the site has since remained untouched.

The move comes after Mexico drew their opening Confederations Cup game 2-2 with Portugal in Russia.
Fifa has since warned the FMF about "insulting and discriminatory chants" and said it could take further action if it happens again.
Mexico have already been fined eight times during World Cup qualifying because of homophobic chanting.
Some fans of Mexico shout an insult at keepers when they take a goal-kick which is argued to be homophobic.
"As you know, Fifa is very serious about the chanting that we do when the goalkeeper takes a kick, and the possible sanctions are serious," said a statement from the FMF.
"Our efforts on the pitch will come to nothing if, because of this (behaviour), we lose the match, the game is suspended or you are expelled from the stadium.
"We lose, you lose, everyone loses."

Aiton, 30, had scans to diagnose the injury on Monday.
He joined the Dragons from Leeds at the end of 2015, and missed the end of the last campaign with an arm injury.
The Papua New Guinea player played 94 games for both Wakefield and Leeds following his move from Cronulla-Sutherland Sharks in 2012.
Plans to build 105 homes on the site of a housing scheme in Norwich - which was at the centre of a "homes for staff" scandal - have been put forward.
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Mexico's football federation (FMF) has asked a "small group" of its fans to stop a chant Fifa says is homophobic.
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Catalans Dragons will be without hooker Paul Aiton for up to six weeks after he tore a pectoral muscle on his debut, in a defeat by Wigan Warriors on Friday.