Owners of Bloxwich’s Green Rock Tavern want to create 30 homes at the site, which will include social housing.
The outline plans include building 10 three-bedroom houses, 12 one-bed flats and eight two-bed flats at the site.
It comes after owners of the Green Rock Road business were forced to shut early in an attempt to curb anti-social behaviour.
A design and access statement read: “Over the past few years it has lost a certain amount of trade due to anti-social behaviour.
“The current owners have liaised and cooperated with the local police in trying to deal with the anti-social behaviour and as a result close early most evenings including the weekends, the result of which has been a loss of trade to what is now an unsustainable level.
"Whilst the loss of the public house could be seen as a loss of a local facility, the local police would support the application and consider it to be the removal of a trouble spot.
"There are and have been several housing and flat developments in the area of a similar size to the one proposed, all of which are fully occupied with a demand for more housing and flat developments.
"It is anticipated that properties would be available to either rent or purchase, or possible be made part of a shared ownership scheme with the developers.
"Whilst the site is currently used as a public house it has previously been granted outline planning permission for residential use."
The scheme has been recommended for approval but councillors on Walsall Council's planning committee will have the final say.
If the outline planning permission is given, finer details will have to be approved in a reserved matters application at a later date.
Walsall Council's planning committee will consider the application at a meeting on January 9.