The South East England Development Agency (SEEDA) and partners such as Swale Forward, Swale Borough Council and Kent County Council drew up the 164ha proposal that could see Queenborough and Rushenden transformed.
A quarter of the homes will be affordable and half are allocated for families. If approved, employment space could be developed at Neats Court. A marina, community facilities, footpaths and cycle roots are also planned.
A separate masterplan for the Rushenden link road was submitted in August to open up the site and remove industrial traffic from the residential areas. The DCLG committed £12 million to the road, for which Kent County Council granted consent in August. A full decision is expected soon.
The plans have been part of a Planning for Real project led by the Neighbourhood Initiatives Foundation. This involves a model presented to the local community so they can physically flag up what they want to see developed where. Each time plans are changed local children update the model.
A SEEDA spokeswoman said: "A decision was made to use the project for the consultation. We had around 5,000 ideas and many were included in the scheme, such as community facilities, a primary school and more jobs."
SEEDA has announced further consultation days this month on which local people will be able to see the proposed model.