Shropshire Council's wholly-owned house building company, Comovii Developments Limited, applied to the planning department to build site of the former Oakland County Primary School at Bayston Hill, near Shrewsbury.
The developer proposes to also include two areas of public open space as part of the scheme, which is for two single-bedroom bungalows, seven semi-detached two-bedroomed homes, 12 semi-detached three-bedroom homes and two four-bed, with one detached house.
Ted Clarke, the ward councillor for Bayston Hill, Column and Sutton, said it put an end to "10 years of deliberation and prevarication" over the issue.
"I like the site layout and the mix of house types," he added.
Councillor Clarke said he regretted that earlier plans for a new library had "disappeared" from the scheme but intended to support it.
Planning officials had recommended that members of Shropshire Council's Northern Planning Committee which met on Tuesday should give the go-ahead.
A report to the committee said that the developer has agreed to pay £75,000 as requested by Sport England as part of a '106 agreement' because of the loss of the playing field.
The money is expected to be spent on improvements to a playing pitch or changing room facilities at a locally agreed site.
Talks are expected to take place with members of Bayston Hill Parish Council on where the money should be spent.
Officials have said that the homes scheme would "bolster the local housing stock" and enable the use of a brownfield site.
They said the go-ahead could be given subject to conditions and the signing of the 106 agreement.
Councillors voted unanimously to approve the application with conditions.