Larkfleet Homes has been served with a Temporary Stop Notice in respect of its development for 91 homes in Tudor Reach, Kirton in Lindsey, which received planning permission back in 2018.
The notice requires all activity on site to cease with immediate effect.
Earlier this year, as a result of excessive rainfall, Larkfleet Homes, residents, the council and the Lead Local Flood Authority agreed a revised scheme to stop rainwater from the site flooding the rear gardens of a number of homes on Richdale Avenue and Westdale Crescent.
The Lead Local Flood Authority also provided written approval to the drainage scheme design.
Given the immediate flood risk issues on site, Larkfleet started to implement the scheme as soon as the authorities gave it their informal verbal approval.
As a result of the stop notice, those works have now had to cease, with the drainage mitigation measures only partially implemented.
Chris Dwan, planning director, said: “We have been working with local residents, the council and others to identify a solution to the flooding problems experienced by local residents since the problem first occurred back in February after a period of heavy rainfall.
"A solution was agreed informally and we started to implement it straight away in case we had further rainfall. The solution was not part of the originally approved plans and the council has served us a stop notice apparently because of that.
“Hopefully, now the Lead Local Flood Authority has formally confirmed their approval of the revised detailed drainage scheme design, the council will follow suit and formally agree these changes and remove the stop notice and allow us to continue with the development.
"This will include the provision of the additional drains, so that we can avoid a repeat of the flooding experienced by some resident earlier this year.”
Coun Rob Waltham, leader of North Lincolnshire Council, said: “Residents in Kirton in Lindsey have quite genuine concerns about the impact this development will have on surface water flooding.
“The council has, for some months, tried to connect with Larkfleet unsuccessfully. It is unfortunate though inevitable that the council has consequently had to exercise these powers.
“I personally attended a number of meetings with councillors Neil Poole, Trevor Foster and John England as well as the MP for Scunthorpe Holly Mumby-Croft and I know first-hand the legitimate concerns people have for their homes and businesses.
“It is our job as elected representatives to fight for residents and if we have to ask the council to exercise the powers available to it to protect people, we will.”