The South Escondido Good Neighbor Coalition has been fighting since December to stop or change the project, but the City Council approved the development last week, overturning a Planning Commission decision rejecting the project unanimously May 8.
Commission staff ruled the project by Hallmark Communities "out of character" with the neighborhood.
San Diego-based Hallmark plans to build the two-story units, priced at less than $300,000. Hallmark officials claim the project would provide affordable housing for the city.
Members of the residents' coalition remain concerned about the project's density and style and have threatened a lawsuit or ballot measure to block the project.
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