A NEW organisation is set to take over the day-to-day running of Bury's 9,000 council houses.

Councillors have decided to set up an Arm's Length Management Organisation (ALMO) which they hope will attract millions of pounds for improvements.

Housing bosses say Bury needs £66 million over the next ten years to bring its public housing up to scratch, but they will only have £45 million if the status quo prevails. An ALMO, on the other hand, could bid for Government cash to bridge the gap.

However, extra cash depends on the council's housing management and repairs service getting a "two star" rating from Best Value inspectors. If everything goes to plan, the ALMO could be in charge within two years.

Under ALMO, the council remains the landlord, but hands over much of the running of the houses, from rent collection and allocations to repairs. Tenants would be among the members of an independent management board.

Councillors at Wednesday's (July 9) executive chose ALMO as their preferred option of four. Further consultation with tenants will take place over the summer, and a final decision made in October.

Councillor Tim Chamberlain, executive member for regeneration and housing, described ALMO as a "pragmatic" solution to get money for investment, and was confident that the department would get a two-star rating.

"There's no guarantee that we would get the £21 million needed, but new money would be available," he said. "This option will save the housing stock for future generations, while we provide the best services we can for our tenants."

Coun Chamberlain described why the three other options were unsuitable. Keeping the status quo would not bring in the necessary money, while any Private Finance Initiative money would only help small areas.

Selling off the houses could bring in more than enough cash, but tenants would have to vote "yes", and there was no guarantee that they would.

Liberal Democrat councillor Tim Pickstone said: "The reality is that the Government has tied this council's hands. ALMO is the best solution that the Government will allow us to have, which is regrettable for local democracy."