Eurobodalla Shire Council has moved to reclassify 11 parcels of land to enable the "potential sale" of the land or reflects its actual use.
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Councillors voted to begin the process in the council meeting of August 23 which would see seven small parcels of land sold to property owners to formalise driveway access, stabilise banks, or increase open space.
Three more lots in Malua Bay, South Durras and Broulee were identified in the Recreation and Open Space Strategy 2018 as "surplus to community needs".
An addition site with an existing water reservoir and telecommunications infrastructure could also be reclassified to reflects its actual use.
Council's director of planning Lindsay Usher said the counillors' vote was the first step in the standard process for land reclassification.
"Today's decision means we can submit these sites to the NSW Government planning department to kick off the reclassification process," Mr Usher said.
"Once given the NSW Government's okay to proceed, the proposed reclassification then goes on 28 days of public exhibition for community review, followed by a public hearing. Adjacent landholders and relevant community associations are also notified.
"This feedback is reported to councillors and only then do they decide whether to sell all, some, or none of the sites. If they choose to proceed, the final planning proposal is sent to the NSW Department of Planning and Environment."
Mr Usher said the three sites in Malua Bay, South Durras and Broulee were suitable for housing, and would likely be sold to builders or developers.
"Money from any land sale will either be put back into the open space network or into Council's real estate development fund, which is allocated for future Council projects as decided by councillors," he said.
