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.
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.