NOTTINGHAM City Homes has reapplied for Government cash to improve and renovate council houses across the city.
It had previously been promised �91 million over the next two years to complete a programme to install windows, insulation, doors, kitchens and bathrooms.
But when the new coalition Government came to power, the council was told it needed to reapply for cash from a smaller overall pot of money.
However NCH has put in a bid which is even bigger – totalling �93m.
NCH assistant director of asset management Steve Hale said: "To be re-bidding for the money that we had previously agreed is not a situation that any council or landlord wants to be in, but that is the new criteria in which we have to operate."
The previous Government said 100 per cent of homes must be of a "decent standard". However, the new Coalition has now said only 90 per cent of council homes must meet this standard – potentially leaving a third of the city's homes which currently do not meet the standard without any improvement work.
The council would only need �67 million to bring 90 per cent of its homes up to a decent standard. But it is arguing that an extra �26 million is needed due to "extraordinary circumstances".
It hopes that this money could be found from a different pot of Government money to the �2.1 billion Decent Homes grant, which has been cut by about �1 billion by the coalition.
The "extraordinary circumstances" include improving hundreds of homes which were to be rebuilt or refurbished under the now-axed Meadows PFI programme.
However, using Government calculations, Mr Hale admitted that in the worst case scenario NCH may only be given �38 million over the next two years.
Housing minister Grant Shapps says the previous system was overly bureaucratic, and meant councils spent too much time "jumping through hoops".
Tomorrow: How political parties are joining forces over homes cash.
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