Householders in Blairhall and Lochgelly could have to fork out thousands as a result of Lomond Homes going into administration.
The housebuilder was granted planning permission subject to three section 75 agreements binding the developer to payments totalling £419,000 towards education, community developments and other infrastructure.
When Fife Council’s executive committee meets next Tuesday, councillors will be asked to consider plans for recovering the money, which could mean residents of the Lomond Homes houses stumping up.
The potential liabilities per household have been estimated at £852 or £3,385 in Blairhall and £4,615 in Lochgelly.
According to the council, the figures represent the “worst case scenario”, where no settlement is received from administrators PricewaterhouseCoopers.
SNP councillors Ian Chisholm and Kate Stewart have called on the Labour administration to waive any claims they may have against the homeowners.
Mr Chisholm said: “I question the legality of whether Fife Council can pass the debt on to the owners and have asked Annabelle Ewing MSP, who is a well-known solicitor, to look at the whole issue.”
Council leader Alex Rowley said: “A report has been prepared for councillors, clearly outlining the legal position and councillors will consider this next week.
“I’ve met with representatives from the local community councils and residents associations and I know they feel unhappy about the process over the last five years, the length of time it’s taking and the way the council has dealt with this.
“I also know they feel very let down by the directors of this company.
“We must now look at all these issues so that no one is put in this position in Fife again and we need to agree a way forward for these estates working with the residents’ associations.”