A total of 52 new homes are to be built around Harrington Drive in Crowland.
Ashwood Homes was given permission to build 42 homes south west, and five each south west and north east of the road by South Holland District Council’s Planning Committee.
The three separate applications had previously been deferred by councillors when the applications came before them in March.
But they praised Ashwood for the changes made and extra evidence provided.
Concerns were aired about the Section 106 agreement offering £8,000 towards the £800,000 costs of the redevelopment of the pavilion and Young Building on Snowden Playing Field.
Ward councillor Jim Astill told the meeting that “wasn’t proportionate”.
The lack of contribution to education was also brought up while Coun Bryan Alcock urged a NHS contribution be ring-fenced for the village.
However the application was unanimously passed.
Coun Andrew Woolf said: “It ticked all the boxes and we can be satisfied even though the contribution of £8,000 is minor.
“We can’t turn it down on those reasons.”