A POTENTIAL £27 million windfall for Bury's 9,000 council houses is another step closer to becoming reality.

Town hall leaders are asking the Government to approve setting up an Arm's Length Management Organisation (ALMO) to take daily charge of the housing stock.

The council will continue to own the homes, while the ALMO, to be called Six Town Housing, will manage them.

The council's ruling executive approved the plan on Wednesday (Dec 17), and Bury's bid for extra funding will go forward to round four of the Government's ALMO programme. The result of the bid will be announced in March. The deal also depends on Bury's housing department getting a "two star" rating from inspectors.

The council has set up a Freephone information line for tenants with questions on the proposal: call 0800 328 1970.

Councillor Tony Isherwood said there was still strong demand for public housing in the borough, with the highest need in Radcliffe, Prestwich and Whitefield. It was essential that Bury was able to invest in its stock, and this plan could bring in £26.5 million by 2010.

The ALMO board will comprise seven tenant representatives, five councillors and five independent members.

Alternatives to ALMO which bosses rejected were:

Status quo (would not raise enough money to bring houses up to the Government's decent homes standard)

Selling off the houses (low valuation, and unpopular with tenants who would have to approve it in a vote)

Private Finance Initiative money (not appropriate for the whole stock).