DANBURY — A controversial housing proposal that gained a second life in the courts after being rejected by the city’s Planning Commission was opposed by homeowners this week as an unacceptable threat to neighborhood character. The hearing called by the Planning Commission was closed after 11 people spoke against proposal, citing fears about flooding, traffic congestion and environmental degradation. “In addition to the reduction in the number of units, we are reducing the length of the driveway and we added a couple of extra visitor parking spaces,” Dainius Virbickas, an engineer working for the developer, said during the public hearing on Wednesday. “The city traffic engineer indicated the typical traffic out of this project is approximately 400 vehicles trips on a daily basis,” said Thomas O’Brien, of East Gate Road.