Executive members on Wednesday night approved a review of the council’s assets after they set up an East Lindsey Invest private company in September 2019.
They also put £250,000 aside for further studies.
The company aims to make a profit for the authority in order to create long-term income and one of its projects has been to identify land for potential new housing.
Councillors were told initial estimates were that between 300-400 homes (around 60-80 a year) could be delivered at a potential overall cost of between £36-48million.
Coun Wendy Bowkett, portfolio holder for communities, said: “We’ve all got ideas for this. Obviously it is a company so we are there to do a job as well, but I think it’s an absolutely exciting thing we’re going to do,” she said.
“Building housing is what we really should be about.”
Coun Steve Kirk, portfolio holder for coastal economy, added: “The current policy denies us any market housing and is killing the coast, starving us of talent and starving us of people who want to come in to buy a new four-five bedroom executive-type house,” he said.
“We just don’t have that on the coast at the moment and we desperately need it.”
He called for the policy to be challenged as part of the process
The authority currently has a need for around 805 affordable homes of between 1-4 bedrooms.
The project would build a mix of market sale and rental homes as well as low cost, affordable and social rent dwellings.
The assets include undeveloped sites, underused car parks and land with buildings that can be redeveloped.
Funding would come from sources including private investment, government funding, the sale of properties and the Public Works Loan Board.
It would be delivered through a mix of the company itself, work with partners, incentives to enable development and buying or selling further land.