North Norfolk District Council development committee members have approved the housing bid in North Walsham despite local concerns.
It will be built on the former sports ground off Station Road, which was once used by Paston College.
Mal Gray, local councillor for Market Cross Ward, said people were worried that the roads will not cope with the traffic it will bring.
He said: “This is a crucial step in addressing the shortfall of affordable housing. But the roads experience far more traffic than they are designed for. Local services are also under increasing pressure.”
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He also added that people were worried the development will harm wildlife, with locals reporting seeing birds of prey, deer and bats in the area.
Sports England have objected to the project due to the loss of the playing field.
However, on balance, councillors decided that the need for affordable housing outweighed the potential harm the scheme could cause.
Housing association Flagship will deliver the scheme, with support from the Paston Foundation, with 100pc of the homes to be classed as affordable housing, meaning they will be offered for rent or sale 20pc under market value.
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This is much needed in the area, with a growing number of families in North Walsham seeking help from NNDC due to being at risk of homelessness.
Peter Simmons, chairman of the Paston Foundation, also said that the homes would bring a new lease of life to the playing field, which has been shut to the public for a number of years.
Funding worth £45,483 will also be contributed by the developer towards the provision of a new 3G football pitch at North Walsham Football Club.