Developers including Rich Lister Sam Tarascio have slammed a proposal by the cash-strapped Mornington Peninsula Shire to levy a 3.3 per cent charge on new developments to fund the construction of between 600 and 1000 social and affordable homes.

The motion to endorse the proposal known as the Affordable Housing Development Contributions Strategy was passed at a council meeting on Tuesday night, but not without condemnation from some of its own councillors who voted against it.