Plans to build 35 houses at Goldenbank, Falmouth, have been refused by Carrick district council.
Members said there was a lack of affordable housing in the scheme and no formal agreement had been reached with the developers on financial contributions to local schools.
It is expected Wainhomes will appeal against the decision.
The plan is in addition to the 69 homes Wainhomes already has permission to build at nearby Swanpool.
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