Fareham planners are bracing themselves for an application to build more than 1,000 homes on the former Coldeast Hospital site.
The news comes after Deputy Prime Minister, John Prescott announced the move to build 15,000 affordable houses on former NHS sites across the country.
Fareham Council's chief planning officer, Alan Wells, said they are expecting the blueprints at any time.
"We expect the Coldeast site to be looked at in due course, but we've been assured that a full and proper consultation will take place with the council and residents," he said.
Residents living near the Sarisbury Green site have warned the extra housing will put pressure on schools, roads, dentists and doctors in the area, which are already overstretched.
And even youngsters from the 1st Sarisbury Green Scout group could be thrown out of their headquarters to make way for developers.
Local politicians have expressed outrage at the prospect of more housing, with one claiming south Hampshire was being "vandalised".
The government has announced it will construct homes on disused NHS land the equivalent of 100 football pitches across Hampshire.
However, residents are concerned that the increase in housing will put pressure on schools, roads, dentists and doctors in the area, which are already overstretched.
The scheme would also mean the loss of open spaces.
Sean Woodward, leader of Fareham Council, said he felt "sad and angry" with the decision for the 170-acre Coldeast site.
He said: "We are not against affordable homes, but we will be losing out on valuable green spaces."
English Partnerships will oversee the building of up to 15,000 new homes on almost 100 former NHS sites across the country, including land on Totton and Calmore as well as Fareham.
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