Oaklee Housing Association is proposing to build 48 houses on the land where Ballyduff Primary School once stood.
The plan, which it says would provide a mix of social and affordable housing, has been welcomed by Newtownabbey's Mayor John Scott.
A consultation process with residents and local politicians is currently under way and, subject to planning permission and the purchase of the site, it is hoped that building work could begin in April 2010.
Alderman John Scott, who is also a community worker in the Ballyduff area, said: "This is fantastic news for the school site.
"I suggested social housing a long time ago because this area needs it. The sooner the houses are built the better. I would especially like to see some senior citizens bungalows built.
"The majority of people here will welcome this news. It's good quality housing at affordable prices," he added.
Oaklee Housing Association is one of the largest registered Housing Associations in Northern Ireland, providing social and affordable housing and services to meet a wide range of needs.
A spokesman for the
Association said: "We were nominated by the Housing Executive to put forward proposals to acquire and develop the former Ballyduff Primary School, which had been declared surplus to requirements by the North Eastern Education & Library Board, in order to provide a mix of social and affordable housing for which there is an established need in this area of Newtownabbey
"Following an initial feasibility study commissioned by the Association, Oaklee proposes to develop a mixed-tenure (i.e. social, rented and affordable for sale) scheme of approximately 48 No. 2 and 3-bedroom houses for families.
"Construction has been programmed by Northern Ireland Housing Executive to commence on site in April next year, and following consultation with local residents and elected representatives, which is currently under way, the Association proposes to submit a formal application to the Planning Service and purchase the site.
"If the application is approved, it is envisaged that the first houses would be ready for occupation/purchase in mid-2011."
Built in 1977, Ballyduff Primary once provided schooling for more than 500 pupils but the ageing population in the surrounding areas had seen pupil numbers fall steadily. The school closed its doors for the final time in 2007.