Southend Council is set to transfer its housing stock to the control of a management group in a bid to keep its more than 6,000 homes in good condition.
Cabinet members will be recommended to accept the move to an arms length management organisation (ALMO) at Tuesday's meeting following a review of housing demanded by the Government.
Three years ago, council tenants voted to reject proposals to transfer council housing to a housing association.
The recommendation to cabinet has come from a group that included both councillors and representatives of tenants and leaseholders.
Acting director of social care Phil Stepney said a housing association was no longer viable in Southend, because the cost of improving the existing homes was estimated at £89 million <corr> over 30 years.
He said: "The council directly managing and maintaining the existing properties could not deliver and maintain decent homes, even at the most minimal level."
Under the arms length arrangement, tenants would still be under council control but there would be a new management structure.
Gwen Horrigan, cabinet member in charge of housing, said the new organisation would be run by a board of unpaid directors, including tenants, representatives of the council and independent people with financial, legal or building skills.
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