Homes Tasmania has responded to a petition with 1100 signatures objecting to a proposed housing project in Penguin.
The plan includes building 50 apartments in a medium density project on former site of the Penguin Recreation Ground.
The former footy ground has been vacant since 2018, when the Penguin Footbaall and Cricket Clubs moved to the new Dial Regional Sports Complex.
Homes Tasmania CEO Eleri Morgan-Thomas says the design will be revised and more community consultation will be undertaken.
While some in the community support the project, Ms Morgan-Thomas says Homes Tasmania has some concerns about the density and layout of the proposal.