Developers of the former Plymouth Rubber site downtown are hoping to create housing at the site under the state’s Chapter 40R on “smart growth” law which would bring $972,000 to the town. This designation brings in state funds in exchange for allowing high-density affordable housing in certain areas. Selectmen are reviewing the application from Canton Holdings, a subsidiary of Illinois-based Napleton, which owns the contaminated site. The state requires that a 40R development be located near public transportation or near city centers, and the site qualifies under both, according to attorney Mark Babrowski, who was hired by the town to conduct a feasibility study of the project. If passed by Town Meeting in the fall, Canton Holdings could build 204 units, with 25 percent reserved for residents making 80 percent or less of the median income in the area. Selectmen are reviewing the proposal and will discuss the issue at their meeting on Tuesday at 7 p.m.