Southside were approved yesterday despite widespread objections from residents.

People in St. David's said they would appeal after the Development Applications Board announced it had passed the plans.

More than 200 residents signed a petition objecting to the homes at Texas Road because they felt it was unfair for 20 percent of BHC's planned 100 homes to be built on one side.

The petition stated that the land was zoned for "community use'' in a plan drawn up for the former military bases.

Residents' spokesman Lawrence Fox said yesterday: "We are disappointed because there is not enough land up there.

"We understand we have 21 days to appeal and we intend to do that. That land was zoned for community use, not residential use, so how can they go ahead and change it? "We feel it is overcrowding the community. That's the main thing. That area is less than two acres and they want to build 20 houses there. There is plenty of room in other parts of the Island.'' The development has been dogged by controversy since residents first found out about the plans for the units, which will be rented out to low income families.

Most residents saw the plans for the first time at a public meeting, by which time BHC had already gaining planning approval in principle.

Local Progressive Labour Party MP Arthur Pitcher was given the contract to build the homes.

His contractors were ordered by environmental health officers to stop demolition of asbestos-ridden buildings on the site while experts were brought in.

Normal planning procedures were flouted because a permit was not granted before the demolition began.

Health Minister Nelson Bascome has ordered his staff to conduct an inquiry to find out if the law was broken during the demolition.

Eyewitnesses said asbestos was lying exposed on the site and that Mr.

Pitcher's workers did not have proper protection. A number of eyewitnesses also confirmed that asbestos was taken away in uncovered trucks. Residents are getting their water tanks checked to see if any asbestos has got into their water.

Mr. Bascome said the asbestos in the buildings was "non-friable'' which posed a very low danger even if violently disturbed, but he said neither the workers nor the community should have been exposed to any risk.

He has stopped short of United Bermuda Party demands for a full public inquiry into the issue.

Mr. Pitcher admitted he started construction work on the site before planning permission was granted. And it also emerged that BHC has not signed a contract with the site owners, Bermuda Land Development Company, even though work has already started.

BHC general manager Raymonde Dill said "agreement in principle'' had been reached between the two bodies.

Mr. Dill did not return telephone calls to The Royal Gazette yesterday.