Plans for 111 new homes off a main road are to be considered by a full council meeting.
The scheme, on 12 acres of pasture off Rossendale Road, Burnley, by Seddon Homes Limited, is a reduction from the 122 properties originally proposed.
It was debated and rejected by last month's meeting of Burnley Council's development control committee.
The vote was nine councillors in favour of rejection, four for approval and two abstentions.
The decision was taken despite planning officers' advice it was beyond the committee's powers and was 'substantially contrary' to the borough's Local Plan.
The reasoning for the refusal was 'the application did not meet the requirements of Burnley’s Local Plan 2018 policy IC5 Protection and Provision of Social and Community Infrastructure as the social infrastructure within the local area, in particular, the provision of school places and health services, is unable to cater for the proposed development, which would adversely affect the delivery of social and community facilities'.
Following the committee decision Catherine Waudby, the authority's head of legal and democratic services has referred it to a full meeting of Burnley Council for final determination.
The councillors had been warned if the decision was successfully appealed by Seddon Homes the council could be landed with the costs of the hearing.
Habergham Parish Council, Burnley Civic Trust and more than 20 nearby residents objected to the scheme on grounds including loss of attractive countryside, the impact on dog walkers and ramblers, traffic and highway safety along Rossendale Road, impact on birds and wildlife, the impact on local schools and health services, and insufficient protection for the local Buttercross monument.
A report to the meeting recommending approval with 28 conditions by planning officer Janet Filbin said: "The proposal would provide a mix of mainly detached and semi-detached houses and one terrace of three houses.
"There would be a range of eleven house types across the site which would provide 49 four-bedroom, 52 three-bedroom and 10 two-bedroom houses.
"All proposed dwellings would be two storeys with one plot having an individual dormer bungalow design.
"The proposal includes provision for a total of 11 affordable homes (nine two-bedroom and two three-bedroom).
"The proposed scheme has been amended since first submitted to provide a greater amount of public open space.
"Subject to a contribution to improve the off-site junction of Rossendale Road and Manchester Road, the proposal can be satisfactorily accommodated within the highway network without any significant impact on traffic or highway safety.
"The proposal seeks to develop a site that is allocated for housing purposes in Burnley`s Local Plan. It proposes a high-quality scheme."
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