Under the proposals submitted to Croydon Council, six houses in Wooderson Close would be lost, five of which are owned by the local authority.
Crystal Palace has promised to work with the council to ensure all tenants affected are re-housed in equivalent properties in one of the surrounding wards.
The club will pay the bill to re-house residents and associated costs, including the cost of moving. It is offering to meet affected residents individually to discuss any concerns.
Crystal Palace development manager Guy Wickett said feedback on the plans had so far been positive,
“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,” he said.
“Our feedback to date shows that more than 85 per cent 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.”
As part of the development, the capacity at Selhurst Park would increase from 26,000 to more than 34,000.
The project is likely to take up to three years to complete but the existing main stand will remain in use throughout the building process.