A controversial plan by Housing Plus to build 26 units for affordable and social housing at 78 Forbes Road has been shelved.
Housing Plus submitted a development application to Orange City Council in May for the complex.
However a council spokesman said on Wednesday council was no longer considering a DA for 78 Forbes Road.
He said the applicant had withdrawn the DA.
The spokesman said council was writing to everyone who had made a submission about the DA to advise them it was not proceeding.
Housing Plus was contacted for comment about its options for the project by the Central Western Daily on Wednesday but did not respond.
As the DA has been withdrawn the applicant cannot now take it to a higher authority, the Western NSW Joint Regional Planning Panel.
The spokesman for the residents' group that has opposed the plan on several grounds this year, Norm Bolitho, said they were waiting for confirmation of the situation.
"We have heard it has been withdrawn [from council]," he said.
"If that is the case obviously we'll be very pleased with the outcome [we hope] has been brought about by Housing Plus giving proper consideration to residents' concerns."
Mr Bolitho said their opposition was due to traffic issues on Forbes Road, the destruction of trees and the size of the project.
"It's going to be developed sooner or later. Just not on the massive scale Housing Plus was proposing," he said.
Mr Bolitho said the residents supported Housing Plus' work but said it was not an appropriate site for what was being proposed.
In response to the DA the residents group sent council a petition of 1019 signatures, saying the stretch of road was already difficult to turn into and out of.
Under the DA submitted to council Housing Plus proposed to have 12 one-bedroom and 14 two-bedroom buildings in 14 separate buildings, particularly to house people over 55 years.
The existing house, domestic structures and some trees would be removed however the DA did state replacement trees would be planted.
It was proposed driveway access to the complex would be onto Forbes Road with 47 onsite parking spaces.
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