COUNCIL house tenants in Derwentside are being asked for their views on the future of housing in the district.

Derwentside District Council is considering transferring ownership and management of its 7,600 dwellings to a new non-profit organisation.

One of the biggest consultation exercises in the authority's history has been launched and tenants will decide the outcome in a secret ballot later this year.

The council needs to invest £117m in its housing stock to bring them up to the modern standards tenants have asked for. But it expects to have only £27m between now and 2010, leaving a £90m shortfall.

The new organisation would be able to gain access to more money than the council currently can because it would not be bound by the same borrowing rules.

Coun Carl Christer, portfolio holder for housing, said: "We strongly believe transfer is the best way forward for their homes and housing service - but it will be tenants who decide the future.

"If transfer goes ahead, the new organisation would be free from the financial controls that the council faces.

"It would have access to the funds needed to give tenants the kind of modern homes they have a right to expect and have been telling us they want to see.

"Tenants can rest assured that if transfer goes ahead, rents would be very similar to those with the council and their rights and entitlements would be protected.

"If you can buy your home now with the council, you would still be able to do so if transfer goes ahead under the Preserved Right to Buy scheme and Housing Benefit would not be affected."

The new organisation would be run on a not-for-profit basis, meaning all surplus funds would be reinvested in tenants' homes and services.

Tenants are to get a series of informative newsletters, explaining what transfer means for their homes, their rents and their rights and entitlements.

Later in the year, tenants will receive a formal consultation document, which will set out all the details of the transfer proposal.

Anyone with questions can call the freephone information line on 0800 977 6018, or contact the Independent Tenants' Advisor on 0800 169 1814.