North Devon Homes bidding to create a mix of flats and terraced houses at the entrance to Gorwell Road.
North Devon Homes has lodged plans for 16 new affordable homes at Gorwell.
North Devon Council gave the charity the land for the two apartment blocks and four terraced houses in November.
The houses at the entrance to Gorwell Road will be 100 per cent affordable and have solar panels on their roofs.
The apartment blocks would have four one-bedroom flats and eight two-bedroom flats. The terraced homes would each be three-bedroom.