The council this week approved a development application for three townhouses on Fairway Gardens Road near Thurgoona golf course.

The backing came after the plan was rejected 7-1 by councillors at their May meeting, despite the planning department recommending it proceed.

Hotondo Homes Albury-Wodonga franchisee Jim Carroll, who is behind the development, welcomed the move.

"It's great for it to be approved, but I'm a little bit confused as to why it took so long to eventuate,” Mr Carroll said.

"It was endorsed by planning staff originally and for some reason one or two councillors took it upon themselves to knock it on the head and now it has gone through as it originally was,  I don't understand."

Mr Carroll said the delay had put the project behind by 12 months and cost him an estimated $10,000 as legal issues were tackled.

"It's something that should have gone through in four weeks, maybe eight weeks, but not 50 weeks,” he said.

Objections raised by residents since the May knockback centred on property values suffering, traffic increasing, excessive size and non-compliance with council planning controls.

Positives for the development included its similarity to the previous plan which had been recommended by council staff and its boost to housing diversity and affordability.

Cr Alice Glachan who moved the recommendation to approve the development said it was "appropriate to the area".

"It shows our planning staff were correct in the way in which they have dealt with process in the recommendation they gave us originally," Cr Glachan said.

Cr Graham Docksey said he believed traffic volume increases flagged by objectors were overstated.

He added the council would have faced a $40,000 cost in the NSW Land and Environment Court if the project was rejected and the council's decision was contested.

Cr Glachan echoed Cr Docksey's concern, noting that planning "can become litigious and expensive for us as a community".

Mayor Kevin Mack said the episode showed "we do listen and we have gone through due process".

Mr Carroll said more approvals for construction will still to be finalised before building began.

He said work on the site could begin by the end of the year.