Deputy leader of Gravesham council, Lee Croxton, said there had been "no good planning reasons" for turning it down.
In Kent permission was granted for the conversion of stables to an industrial development on a farm in Gravesham.
Gravesham Borough Council believes people with no local connection should no longer automatically get on the housing waiting list.
Mark Devlin, who took over the post in January 2010, was formerly the head of Dartford and Gravesham NHS Trust.
Gravesham Borough Council approved the change to stop people with no local connection from getting on the housing waiting list automatically.
The cap has prompted fears that tenants will be forced out of expensive areas of London to nearby boroughs such as Gravesham.
And for virtually the last 40 years whichever party has won the Dartford and Gravesham seats has also won the general election.
The Dartford and Gravesham NHS Trust, which runs the Darent Valley Hospital, said it had "robust systems in place" and overpayments were rare.
Gravesham Borough Council threw out the plans last September, arguing that they were too large and not in keeping with the existing architecture.
Plans are now in place for NHS Dartford and Gravesham to merge with Medway NHS Foundation Trust in a bid to reduce management costs.
Authorities including Gravesham Borough and Kent County councils and the Greater London Authority have expressed concerns about how the extension will affect local town centres.
In future, any household wanting to move to Gravesham without a local connection would have to face a special panel to rule on their eligibility.
In Gravesham, of 208 dogs collected last year 71 were Staffie-types.
Kent County Council, Dartford and Gravesham borough councils and the Department of Transport have been working with Land Securities on transport improvement plans in the area.
Gravesham has about 3, 180 households on its waiting list, with an average nine month wait for a three-bedroom flat and two years for a four-bedroom house.
But the NHS survey, which highlighted the scale of bullying in Medway, also revealed Dartford and Gravesham NHS Trust was just behind Medway, with 19% of staff reporting they had been bullied.
Martin McKay, spokesman for Urban Gravesham, which led the opposition campaign, said he had yet to see details of the new scheme but he hoped it would not lead to "years more planning blight".
In a dossier sent to councillors ahead of the regulatory board meeting, Urban Gravesham said the proposals would "completely overwhelm the Heritage Quarter, blocking out daylight for existing residents and businesses and destroying the historic character of the area".
The Princess Royal is likely to be taken over by King's Health Partners in south London, Queen Mary's would be taken over by a mix of Dartford and Gravesham and Oxleas NHS trusts and the Queen Elizabeth is expected to join up with Lewisham Hospital.
BBC: South London Healthcare Trust should be split up - report
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