OPTIONS for the management of council-owned housing and how to pay off a potential £242m debt to the Government will be discussed by councillors this week.

Durham County Council’s cabinet is being asked to consider two reports regarding council housing when they meet at Crook Civic Centre, on Wednesday (DEC 14).

The reports look at the implications of the Government plans to introduce a self-financing system for the management, improvement and maintenance of council-owned homes as well as the issue of whether the county council should retain ownership of the properties.

Self-financing will be introduced from April 2012 and will mean the county council will be able to keep its income from rents to help fund maintenance and improvement works.

However, the county council will also become responsible for paying off a £242m debt allocated by the Government as part of the new system, with a limit imposed on how much the council is allowed to borrow to fund improvements.

The county council owns about 19,000 homes, with nearly 13,000 being managed by the Arms Length Management Organisations (ALMOs).

East Durham Homes, looks after 8,500 homes, and Dale and Valley homes, which looks after 4,300.

The remaining 6,100 homes are managed by Durham City Homes, the county council’s in-house management organisation.

Clive Robson, cabinet member for housing at the county council, said: "There are some significant financial changes and challenges to be dealt with over the coming years and we must make sure we are ready to handle them.

"We are working with tenants, staff and other interested organisations to develop an approach that will not only meet the priorities expressed by people during the consultation events but will also enable us to secure the required level of investment to continue to improve homes and to maintain the Decent Homes Standard."