The Premier League club has submitted its planning application to Croydon Council for the redevelopment of Selhurst Park’s main stand.
Under the proposals, six homes in Wooderson Close would be demolished, five of which are owned by the local authority.
Crystal Palace FC has promised to work with the council to ensure all affected tenants are re-housed in equivalent properties in one of the surrounding wards.
The club will also be building six new family homes to ensure there is no overall loss of housing in the borough.
Crystal Palace FC has undertaken a programme of consultation events and meetings with local stakeholders before submitting the planning application.
If approved, the capacity of Selhurst Park would increase from 26,000 to more than 34,000.
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“We have had excellent engagement on our proposals with more than 400 people coming to view the plans and hundreds more talking to us through the website, fan forums and on social media,” said Guy Wickett, development manager at Crystal Palace FC.
“Our feedback to date shows that more than 85% of people within the local community support the principle of the redevelopment of the stand.
“We will continue to work with Croydon Council and the local community as the plans progress, addressing any concerns that residents in the immediate area might have.
“This is a development which will bring significant economic and community benefits to the entire area and is a mark of confidence in Croydon.”
A planning committee decision is expected in April, and once validated, the application will be open for public consultation.