Leigh Krang, whose home in Newington Parade abuts the site, said he was informed by mail last Friday week of the proposal. He has until March 25 to lodge an objection, which he intends to do.

With the encouragement of the state government there has been a surge of medium development housing between Mordialloc and Carrum.

Last year, the Victorian Civil and Administrative Tribunal approved multi-storey, multi-unit developments at the old police station site behind the old court house in Bath Street and on the corner of Bath Street and Maury Road.

Mr Krang is concerned the new proposal could open the floodgates for medium-density housing along the foreshore side of Chelsea if it is approved.

"I have seen the plans [by Bentleigh architects The Silver Arc] and the development is entirely inappropriate for the neighbourhood. It will cause traffic, parking and garbage collection problems, and will devalue the area," Mr Krang said.

"At least the developments in Bath Street interface with the council car park. This is in the middle of a residential area."