The former convent site in Dumfries is being earmarked for affordable housing in council plans to go to the Scottish Government.
The move will be discussed at the economy and resources committee on Thursday in the annual review of the Strategic Housing Investment Plan (SHIP).
Members will be asked to agree to the inclusion of multiple new projects with the proposals then being submitted to Holyrood.
The investment plan is designed to tackle socio-economic challenges due to a lack of affordable housing.
Nearly 2,000 housing units are being put forward across Dumfries and Galloway with the Benedictine convent site being listed among them.
Developer Building Craftsmen is listed as seeking to create 62 affordable housing units on the site on Maxwell Street.
The building company is owned by Queen of the South chairman Billy Hewitson who also owns the former convent site.
The Dumfries landmark was ravaged by a blaze earlier this month.
A security fence was erected after the fire but youths were seen scaling it and entering the site before police were called.
After the blaze the Palmerston chairman spoke of his plans for the area which included luxury flats, affordable housing and an international school.
He said: “It’s so disappointing that vandals trash the place and then it’s burned down. It is irreplaceable.
“We did a brochure on an international school and had interested parties for that and I thought it was a brilliant thing for the town.
“It would have brought up to 250 pupils coming to Dumfries with their families and we were talking to the university about it for a tie in and it was all great stuff but I doubt if they will carry on because it was the history of the building that was the attraction. You can build a new school anywhere in Dumfries but it was the building itself that was the attraction.”
He added: “It will probably be apartments and housing if we can get cross funding from the housing people.
“It would still be built as well as affordable housing too if I can get the Scottish Government to buy into it then it would be housing for a lot of people from Dumfries and not just incomers.”
Councillors will be asked to agree to the inclusion of new projects and submit them to the Scottish Government before October 30.
