BLACKBURN with Darwen Council is set to embark on an unprecedented housing scheme that will see almost 20,000 homes affected.

Town hall officers are about to put in place plans for the £103million Elevate East Lancashire programme.

They are deciding how the money, given by Deputy Prime Minister John Prescott last month, should be spent revitalising rundown areas and re-vitalising neighbourhoods.

On Thursday, members of the council's executive committee will be asked to ratify its cash allocations - setting the ball rolling for work to begin.

The council has been keen to stress it has only been given cash for two years, after originally bidding for three years. But it is understood that regeneration officers at Blackburn with Darwen believe they have enough money to implement the first two years of their plans.

According to a council report, over £40million will be devoted to a radical housing plan for three areas of the borough.

Blackburn with Darwen Council was one of five authorities in East Lancashire to make up one of nine Pathfinder areas bidding for a share of £500million.

An estimated 19,777 homes in central Darwen, Blackburn Infirmary and Queen's Park area, as well as Bank Top and Griffin, will see the biggest changes.

The team putting the plans in place have been told the money must be spent quickly by Government officials who are keen to see the benefits of the programme take shape soon. The council is also drawing up plans for people whose homes have been earmarked for demolition. A series of initiatives is being looked at to will help in the buying and bulldozing of unfit homes.

A council spokesman said these included a "home swap" scheme and an "equity switch" plan, where homeowners will have the value of their homes transferred into another property.

The report the executive members will be asked to rubber stamp states: "This is an opportunity to deal with problems of low demand, poor housing and environment in three areas of Blackburn and Darwen that have been identified to be in the greatest need."