A developer planning 19 homes on the site of a former dairy has offered the council money instead of affordable homes.
Superstone Homes, owned by the Taghan family, and Brighton and Hove City Council signed an agreement covering affordable housing in March.
Superstone was due to include two homes to be let for an affordable rent and one for shared ownership at the old Dairy Crest depot, in The Droveway, Hove.
The council’s Planning Committee is being asked to agree to change the terms at a meeting on Wednesday (4 October) to allow an affordable housing contribution – or commuted sum – of £787,300 instead of the three homes.
A report to the committee said that the developer had contacted several registered providers, such as housing associations, but none had been willing to take on just three properties.
The report said: “Smaller numbers of affordable housing such as this are not currently viable for most registered providers (RPs) and the developer has shown that there has been no interest from RPs in purchasing these homes.
“The council also looks at potential purchase of rented homes but faces similar challenges in terms of viability and resources around smaller sites.”
Commuted sums help the council to buy or build affordable housing in other parts of Brighton and Hove.
The Planning Committee is due to meet at Hove Town Hall from 2pm on Wednesday (4 October). The meeting is scheduled to be webcast on the council’s website.