The potential problems when local councillors are also property developers have been highlighted in a report tabled in NSW Parliament on Wednesday.

The antics of the controversial property-developing Auburn councillor Salim Mehajer have been well publicised.

Allegations of misconduct: Hurstville councillor Con Hindi. Credit:Dallas Kilponen

Now, Hurstville's property developing Liberal councillor Con Hindi will be the subject of a formal investigation over allegations of misconduct, according to a report by the Office of Local Government.

Last year Fairfax Media revealed that Cr Hindi repeatedly failed to comply with orders from his own council staff to remediate his asbestos-contaminated development site in Crump Street, Mortdale.