Flintshire Council looks set to vote to transfer ownership of its 7,500 houses to a separate body.
The Welsh Assembly Government has asked councils how they intend to bring homes up to a designated standard by 2012.
Councillors will be asked to vote on two options - transferring the houses or retaining and modernising them.
However, earlier this year, the council said a review had concluded it would cost £126m to bring the homes up to the necessary standard.
A report to be submitted to members on Thursday says the council could transfer ownership of the properties to a Registered Social Landlord (RSL).
The report warns that the alternative option of retaining the stock "following extensive financial modelling, validation and review, is not viable or achievable under the current legislative and funding framework available to the council".
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