Bolton Council's housing department has been judged the best in the North-west.
The Government has assessed it as performing "well above average."
As a result, it will receive an extra £1.4 million to spend over the next 12 months.
Bolton has also come out among the top five in the country since a performance assessment system was introduced seven years ago.
In total, the town has received more than £12 million in extra funding.
Cllr Noel Spencer, housing committee chairman, said: "This accolade is just reward for the very hard work from our housing staff, other council colleagues, partners and the support of our customers. "Last year was particularly hard due to increasing demand and rising expectations as we tried to move the department to tackle more broadly-based regeneration activities putting some of our basic services under stress. However, we will continue to strive to improve our services and we are looking forward to the New Year with confidence."
Cllr Bob Howarth, Bolton Council leader, added: "This shows that opportunities are there to be grasped and we can succeed by working together."
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