Under the proposals, which will be contained in the Localism Bill, community organisations will have the freedom to give the green light to new local developments without a specific application for planning permission, as long as there is overwhelming community backing in a local referendum. Any surplus made from the sale or renting of homes would be recycled for the benefit of the community. But community organisations would not be restricted to just building family homes - they could choose to build sheltered housing for the elderly, or set aside plots for people to build their own homes.