Bellway Strategic Land has submitted plans to Durham County Council for the development in Hawthorn, which would also include open space and a convenience store.
The 15-acre site off Stockton Road sits between residential areas that have been added to the village over recent decades.
Around half of the site would be landscaped open space, including a recreation area, a play area, a community orchard, swales and other wildlife habitats. A new sustainable urban drainage system will also be delivered.
Martyn Earle, Strategic Land Director (North), said: “Hawthorn is a well-connected village which is well placed to accommodate new homes. This development has been designed to provide facilities that are currently lacking, including affordable bungalows, a shop, and new public open space which would provide the missing link between the existing residential areas.”
There would be 12 affordable homes, including eight bungalows and four houses.
Bellway would make contributions towards local services, such as education and healthcare, based on the local authority’s requirements.
People living in and around Hawthorn were invited to take part in a public consultation in November and their views were taken onboard before the planning application was finalised.
Martyn said: “Sustainability sits at the heart of the plan, with footpaths and cycle paths linking the new homes to the village and public transport connections to Hartlepool, Sunderland and Durham. The new residents would be living in low-carbon homes heated by electric air source heat pumps.”
The development would support 115 jobs during the construction period, along with a further 60 in the supply chain and connected industries. Bringing new residents to the village would increase spend in the local economy by an estimated £975,000 each year.
Durham County Council will make a decision on the application after carrying out its own consultation process.