Planning has been submitted for the North Fod site following a consultation with local residents in the summer.
25% of the new homes on the seven-hectare site will be affordable housing.
It is thought the new homes will range from one to four bedrooms and include wheelchair and amenity housing.
Following the public consultation in June, the council said it would take "active measures" to alleviate flooding concerns "and possibly enhance" the football pitch.
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But villagers are worried the new development could add to parking congestion on Fod Street and increase traffic on Pittsburgh Road.
The council has said due to new pedestrian routes, green travel plans and four potential vehicle routes from the site, "the new development would not lead to any significant increase in the level of traffic on Pittsburgh Road".
Sheila Chadfield, of the Halbeath Residents and Tenants Association, said: "It would be better to have housing there as it's just a big open space and there are drainage problems with back gardens in Fod Street being flooded by the run-off from the fields.
"Another query was about capacity in the primary school, as there would be families moving here, but I think there is room.
"No-one has objected to it as far as I know and as long as it doesn't hurt the village it should be fine."
(IT)
