Great Glen was one of many areas in Leicestershire affected by severe flooding in January 2025.
It comes after heavy downpour earlier in January, when homes in Great Glen were badly affected.
The David Wilson development would cover an area the size of 13 football pitches.
A man fell from roof beams at a house extension in Thurmaston and died in hospital.
Pub owner Cimi Kazazi says there is "light at the end of the tunnel" after volunteers step in.
Cimi Kazazi said he "didn't think twice" about going to the aid of the driver.
Stretton Hall has been earmarked for development as part of the New Homes Accelerator scheme.
A range of timetable tweaks and route changes are planned in late August.
Leicestershire Police said "everyone got out safely and uninjured" after a "mechanical issue".
