Century Youth House in Romford will be partly demolished so the council can build eight three-bedroom houses and one two-bed.
The Victorian building, which dates back to the late 1800s, has been dormant since 2018.
It stopped being used as a school in 1979 but was recently used as a pupil referral unit for young people who had been expelled or were too ill for schooling.
If approved, the main building would be replaced with four homes, while the rear will be converted into five houses.
The building is surrounded by similar Victorian-era housing, which the council says would be in-keeping with its plans for the area.
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The authority hopes to preserve the historic core of the building, and has proposed keeping the school’s 1883 dedication plaque.
The plans include provisions for eight car parking spaces, which has led to some concerns from residents about traffic flow.
Conservative ward councillor Judith Holt said parking was “at a premium” on the road, with residents “often struggling” to find a space.
She said the road was already “extremely busy” and the extra traffic would “not be appreciated”.
Her fellow ward councillor, Labour’s Jane Keane, requested for the scheme to go before the planning committee to address her fears that residents would lose privacy and sunlight.
Other residents suggested converting the building into a community hall or an ambulance depot.
A formal planning application was submitted by Mercury Land Holdings, a developer wholly owned by Havering Council, in early December last year.
Havering Residents Association councillor Graham Williamson, who serves as the cabinet member for development and regeneration, said at the time: “Our goal is to create new homes to help meet the housing needs of our residents and we welcome this proposal which is sympathetic to the heritage of the building.”
The building was designated as surplus to the council’s needs under its asset disposal strategy for 2022 through 2028.
A decision on the plans was due to be made by the council’s planning committee on Thursday (March 13), with a recommendation to approve the proposal.
If approved, work is forecast to begin later this year.