The Villages is asking Leesburg to allow housing for younger residents in areas on either side of the Florida Turnpike.
The City Commission advanced the measure Monday night. A public hearing is planned for Dec. 14.
Under current rules, the Villages of West Lake is restricted to residents 55 and older, like the rest of the sprawling retirement community.
The changes would allow non-age-restricted housing in a Community Support District intended for employees and their families.
The Villages continues to expand southward in Lake and Sumter counties.
Despite objections from some residents, it is pursuing other changes, too, like adding an apartment complex and putting second-story apartments at the town squares.