Labor mayor Adam Shultz's plan to explore using Lake Macquarie City Council-owned land for affordable housing was endorsed by councillors, despite early scepticism along party lines.
Cr Shultz's mayoral minute on Monday night called for the council to open up expressions of interest for community housing providers to develop vacant land at Cardiff and Booragul.
A council spokesperson said on Tuesday that the addresses of the land were unavailable as staff are "still undertaking investigations to determine suitable sites".
The plan was endorsed 10-1, with Liberal North Ward councillor Jack Antcliff the sole vote against.
East Ward Liberal Matt Schultz and Labor West Ward's Madeline Bishop were absent through illness.
Labor councillors Brian Adamthwaite, Keara Conroy and Christine Buckley strongly supported the mayoral minute.
East Ward's Cr Buckley said homelessness was a significant issue in Lake Macquarie.
"I think our residents would be pleased that we're doing something to assist in this issue because most of us know somebody who is affected by the cost of housing and the cost of rent within the community, and we really need to be looking to see what we can do to assist in making those rents and the price of housing more affordable for people," Cr Buckley said.
North Ward's Cr Adamthwaite said the mayoral minute was just the beginning of a conversation about potentially using the vacant land.
"We need to dispel the idea that we're in any way a developer," Cr Adamthwaite said. "We're not a developer.
"We can't necessarily hope for the free market to look after the concerns that we have.
"There are agencies, which we have worked with in the past, that we have given discounts in the past so that we can have low-cost housing.
"That's something you can't guarantee will occur with a free-market developer."
Cr Antcliff said he held concerns about the council getting involved in providing community housing.
"I probably sit on the side that if we have surplus land, I'd rather see it divested and let the free market determine that rather than the ratepayers be involved in this process," Cr Antcliff said.
"I appreciate there are also challenges around that."
Lake Mac Independents' Kate Warner said she and other West Ward councillors had been contacted by Booragul residents with concerns over housing projects.
The Newcastle Herald reported in July that a nine-storey, 49-dwelling residential flat building was proposed for 17 Fourth Street in Booragul.
The proposal would be the suburb's tallest building and falls within the NSW government's Transport Oriented Development (TOD) rules because it is located within 400 metres of Booragul train station.
"Given the history of some of the difficulties with other housing developments there, I think it would be really important that we engage them in a really clear consultation process and note that the community is a little on edge with what's happening at the moment," Cr Warner said of Booragul residents.
"As part of this we need to ensure we take the community on the journey with us as much as we can in our consultative process given what's happening at the moment."
West Ward Liberal councillor Jason Pauling initially said the plan's "lack of detail creates a great deal of anxiety and commercial concern for me"; however, he was on board following the debate and questions to council staff.
"We are not developers. This is not our problem," Cr Pauling said.
"That said, we are landholders and we are responsible and accountable through various mechanisms to ratepayers for the assets of the city for appropriate due diligence and governance."
