A local authority is seeking to borrow £50m to buy properties to rent on the private market and for affordable housing.
West Norfolk Council's scheme will see the sum lent to two housing companies it set up and is the sole shareholder of, which will then be used to purchase property.
But with high interest rates, members have raised concerns it could be a risky manoeuvre that may leave the council with little wiggle room for further borrowing needs.
West Norfolk Property Limited (WNPL) was set up in 2018 to acquire properties developed by the council to let on the private rental market and it currently has 74 properties in its portfolio.
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West Norfolk Housing Company is a non-profit provider of social housing, which provides affordable homes for the district and manages 47 affordable homes and seven flats leased from the council.
The funds will be used to buy 65 properties to be rented privately and 73 homes to be used as affordable housing.
But it will leave the council with only £14.5m left out of the £64.5m pot of money it can borrow in future years.
Councillors Alexandra Kemp and Alun Ryves worried it may leave the council at high risk of struggling to borrow more money if it is needed in the future for unforeseen needs, like failing sea defences.
This was rebuked by Alistair Beales, cabinet member for business, who said the money was being used to buy secure assets.
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The move is seen as vital to ensure the council continues to deliver much-needed affordable homes for people in the district.
Councillor Ring highlighted that the council buying properties for rent would not compete with the private sector but instead fulfil a need in a market that is failing - there is a shortage of homes to rent currently in the district.
A decision on whether to agree to the borrowing will be decided at a cabinet meeting on January 15.
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