A NEW plan has been developed to tackle Bolton's housing crisis.

It follows a Government decision to reject the town's unique Community Regeneration Company model (CRC), which had all-party and tenant support.

Bolton Council chiefs wanted to transfer the town's 22,000 homes to an independent company and then borrow millions from the private sector to invest in the property and the people.

But the scheme was rejected by housing minister Lord Falconer who felt the Government's own proposal of an Arms Length Management Organisation (ALMO) still attached to the council would be better. The government has pushed for councils to set up Large Scale Voluntary Transfers - where stock is sold to a registered social landlord - but better run councils including Bolton have been allowed to bid to become an ALMO.

Bolton Council wants to keep what they see as a very valuable public asset and not sell the homes off.

With the ALMO they do not have as much borrowing power as the CRC would have had, but it will give them over time, they say, the hundreds of millions of pounds needed. Keeping things as they are would not.

Yesterday it was submitted to the Government and will compete with 20 other authorities for the privilege. An answer is expected in May, but in the meantime residents will be consulted.

Seven of Bolton's wards are within the 10 per cent of Britain's most deprived and a survey has shown that of 21,749 council homes, 12,547, or 58 per cent, are "not decent" properties to live in.

The council says it now needs to spend £224m in the next seven years and this they would get from the ALMO. This would clear a backlog of repairs, compensation claims, get properties up to standard and regenerate estates.

Currently it gets only £11m a year from the Government. In the first year of the ALMO they would get almost £50m.

Executive member for Housing Councillor Noel Spencer says in his opinion the ALMO is the next best option and closest to the CRC model.

"Our public sector estates have some of the most deprived people in the borough who have for decades been in deep levels in poverty . We see it as our task not just investing in the property but to extend the a helping hand so we can develop and grow and become strong, self confident and self sufficient.

"That is what this option is about."

The bid was unanimously supported by all parties.

More about the ALMO

Area boards - with the largest majority being tenants - would be set up to oversee the homes with devolved powers.

Council housing staff will also transfer over to the new organisation.

The ALMO success will depend on achieving excellent housing services and a three star rating _ the highest you can get - by March 2003.

It will allow the council to spend on average £6,200 per property.

The first year will deliver a 68 per cent decency standard by 2004 and 100 per cent by 2007.

A technical services unit will be an essential part of the ALMO and will take the lead in developing partnerships with private constructors.

The ALMO will make sure tenants have more say and include hard to reach groups including ethnic and minorities.