Town hall bosses in Douglas want to spend £17m of public money to renovate parts of the Willaston estate.
The five-year project will include 215 properties, the demolition of the estate’s police station site and the adjacent block of flats, which will be redeveloped into a new sheltered housing complex.
If approved, a total of £43,779 will be spent on improving each council house in the scheme.
Douglas Council is going to petition central government to borrow the funding for the project.
Any shortfall between the cost of renovation and the income from rents will be added into the overall housing deficiency which is ultimately picked up by the taxpayer.
As the Examiner reported earlier this year, many houses in the estate are blighted by damp.
Chairman of Douglas’s housing and property committee, Councillor David Ashford, said: ‘The conditions some people are living in there are terrible, so this should be a priority.’
Councillor Ashford said the cost of the scheme had quoted as £79,000 per property, but this was incorrect as the £17 million figure over five years includes the redevelopment of the Willaston police station site and the adjacent block of flats.
He said: ‘The actual cost per property for the renovations in relation to the damp issue is £43,779, which also gives the property a 25-year extended lifespan. The remainder is the funding for the design and build for the 40-unit sheltered housing complex.’
Mr Ashford added: ‘A total rebuild was considered at one stage and if the pilot scheme had not succeeded then that may have had to be considered more fully.
However, a complete new build would cost £135,000 per property.’
That would have meant spending an extra £91,220 per property, or an extra £19 million across the 215 properties.
‘The cost of £135,000 per unit was obtained from a consultant quantity surveyor and based on the average figure for new builds on the island. The rebuild that took place not so long ago in Pulrose worked out as £133,694.81 per dwelling,’ said Mr Ashford.
‘My house is about the same size as one of the Willaston ones and has an insured rebuild value of £140,000 on the building insurance.’
Builders TE Leece and Son Ltd told the Examiner that £135,000 for a new build was possibly even on the low side of an estimate.
At a meeting of Douglas Council on Wednesday, the council voted in favour of the plan by 14 votes to two.
The approximate yearly costs over five years were set out as follows; Year 1 - 2013/14 - £1.4m, Year 2 - 2014/15 - £2m, Year 3 - 2015/16 - £4.8m, Year 4 - 2016/17 - £4.8m, Year 5 - 2017/18 - £4m.
Work included in the £43,779 figure will include: removal and replacement of outer leaf of brickwork, new vents to plinths of new outer leaf of masonry, new 50mm rigid cavity insulation board, new stainless steel wall ties, new dashed render finish coat, removal of redundant chimney stacks, new concrete roof tiles, roofing membrane and roofing battens, new uPVC soffits, fascias, drains and gutters, new fibreglass composite front and rear doors, new concrete window sills, new stainless steel lintels and making good to damaged damp plaster.