The site, south of Halifax Road, was earmarked for housing the Barnsley Council’s local plan in 2019.
Applicants Barratt Homes and David Wilson Homes say the development will be mostly made up of two storey houses, and will include 120 affordable properties.
Developers will be required to pay more than £2 million to fund 79 primary and 56 secondary school places in the area, through S106 contributions.
The proposals state the development will include “a small number” of three storey houses in the centre, and 12 bungalows on the edge of the site.
Information released last year revealed the need for affordable housing in the west of the borough – only three affordable homes were built between January 2019 and October 2020.
A total of 128 objections have been made – including concerns from Penistone Town Council and Hannah Kitching, the Liberal Democrat Councillor for Penistone West.
Although Penistone Town Council welcomed the s106 cash, they raised concerns regarding the scale of the development and access from Halifax Road on to Wellhouse Lane on a “bad bend”.
Councillor Hannah Kitching echoed this, adding that the access of Halifax Road “should have a speed reduction to 40mph and consideration should behad for a mini roundabout here.”
“Wellhouse Lane is difficult at certain times of the day because oftraffic volume and speed and the additional traffic will impact on existing residents,” she added.
Coun Kitching also suggested that the s106 cash should be used to create a transport interchange near Penistone Train Station, “offering increased town centre and station car parking”.
Barnsley Council’s planning regulatory board will meet on June 8 to discuss the plans, which are recommended for approval.