Construction is causing an increase of dust in the air and disrupting student life, some students say.
The housing project could include five-bedroom units.
The council discussed making a recommendation to the county in favor of a school facilities waiver for a student housing development.
Some community members are still concerned the housing isn't affordable for students.
A detailed site plan will follow the preliminary plans soon, according to the city planning director.
The council is slated to vote on the proposal next week.
The project will include 343 multifamily units and span more than 1.65 acres.
Eric Tata is facing burglary, trespassing and peeping Tom charges.
Police issued an all clear at about 3 a.m. Thursday.