Initial estimate was £800,000.
Eight homes are proposed for a field behind the pub.
The project will cost about £9.8m.
The homes would be built where garage block was damaged in high winds.
Contractor Kier expects the permanent community centre to be built by early 2026.
But Labour administration says it is investing.
The development will include 45 council homes and 39 market sale homes and replaces 30 properties built in the 1950s.
They raised thousands for youth homelessness projects.
Councillors have warned about the consequences of inflexibility.
The water company’s position leaves local authorities scrambling to find solutions.
The government has again delayed a decision on the move of the waste water treatment plan.
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Decision awaited before north-east Cambridge development can proceed.
