The application for the Alliance Street and Hind Street site proposes 114 homes ranging from two-bedroom flats to four-bedroom houses. It is part of a £40 million vision that would see around 400 homes built for sale or rent, as well as facelifts for other houses and environmental improvements.
The scheme was developed by Stockton-on-Tees Borough Council with the Parkfield and Mill Lane Neighbourhood Management pathfinder and the local community. It aims to tackle poor-quality housing for which there is little or no demand.
The council requires private and public sector investment and is in the process of preparing a funding bid in the region of £10 million to the regional housing board to progress the scheme.
The masterplan divides the rest of Parkfield into sites north and south of Yarm Lane. The north will be targeted first, with 190 properties and commercial sites to be replaced with 130 homes over the next four years.
A council spokesman said: "The houses are worth very little so the issue is about housing market renewal."