AT least £107million will be spent on Blackburn with Darwen council homes if they are taken over by a non-profitmaking company.

Twin Valley Homes, which has been set up to take over the crumbling council estates, has pledged to spend the cash over five years, if tenants vote to transfer ownership of their homes from the council.

The cash will be used to provide central heating, double glazing and insulation and replace outdated kitchens in the council's 10,000 homes.

Within 10 years, another £25million will be spent on improving bathrooms and £3million on environmental work.

Twin Valley Homes has also promised to hold down rent increases and protect tenants' rights. Tenants' representatives will serve on the company's board with local councillors and business people.

Councillors are considering the package at an executive board meeting today. Every tenant in the borough will also be sent a copy of the company's offer and a video about it before the ballot, later this year.

Phil Richards, the council's director of housing, said the independent organisation would be able to borrow cash from the private sector to pay for improvements, which the council was not allowed to do.

Tenants of Larkhill tower blocks recently voted for non-profitmaking company Space to take over their homes. It is likely that the rest of the borough's run-down council estates will also be in private hands by 2001.

A recent survey showed the neglected houses needed about £130million to bring them up to scratch, but plans to spend £7.5million on refurbishment schemes were shelved by Blackburn with Darwen Council earlier this year, due to a cash crisis.

Only £3.6million was earmarked for housing repairs this year, compared to £12.07million in 1993.

The council has massive housing debts and will still owe money even after the homes are sold off.

If the homes are sold, the Government has promised the council a one-off payment to clear their debts.