PLANS to regenerate Sunderland's East End could win £900,000 from the Heritage Lottery Fund.
The fund has given approval for a bid by Sunderland City Council under its Townscape Heritage Initiative.
It has awarded a £25,000 development grant for the council to work on the second stage of its application.
If the £900,000 bid is successful, most of the money will go on repairing historic buildings standing empty and converting them for new uses.
Several of the more notable listed buildings are at serious risk of being lost.
Officials hope to attract new investment into the area.
Properties that could benefit include the Grade II-listed Donnison School, 171 to 175 High Street West, Grade II-listed properties that are seriously dilapidated, and 144 High Street West, a mid-19th Century snuff factory derelict for a decade.
Professor Richard Bailey, chairman of the Heritage Lottery Fund's North-East committee, said: "This project offers great value for money.
"Old Sunderland has such a lot going for it - panoramic views of the river, its proximity to the city centre and potential development sites, its access to the road and river, as well as the concentration of historic buildings which would make really desirable premises.''
Sunderland council cabinet member for environment, development and transport, Councillor Ian Galbraith, said: "The potential that this money has to enable us to continue a conservation-led initiative in Old Sunderland is very significant."
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