Council house tenants in Conwy have voted by a narrow margin to transfer their homes to an independent body.
The ballot of Conwy Council tenants had a 61% turnout
Cartrefi Conwy will take over ownership and management of the properties after 50.8% of the tenants voted yes in a secret ballot, with 49.2% against.
Conwy is the latest authority in Wales where tenants have been asked to decide who should own their homes.
Many councils have said they would be unable to meet strict new standards if the houses stayed in their hands.
The ballot of tenants on the idea of the transfer to the not-for-profit housing organisation had a 61% turnout.
The council drew up proposals for the transfer to ensure the housing stock could be improved up to the Welsh Housing Quality Standard, set by the Welsh Assembly Government.
In a statement, the local authority said the vote would mean a future programme of repairs and improvements totalling £58m in the first five years and £237m over 30 years.
Conwy council leader Goronwy Edwards said: "Tenants have clearly recognised the very difficult financial position facing the council.
"While the council has always worked hard to provide good homes and services for its tenants, a lack of resources meant we simply could not afford to bring homes up to the Welsh Housing Quality Standard.
"Cartrefi Conwy will be able to deliver the repairs and improvements that are needed and we are confident they will deliver all the promises to tenants."
Dilwyn Roberts, chair of the board of Cartrefi Conwy, said: "We will be working hard to develop a detailed improvement programme over the coming months so that we can deliver the full benefits of transfer to tenants from day one."