Writer Julie Burchill has accused Brighton and Hove Council of the wholesale persecution of working class people born in the city.
She launched her tirade after donating £300 to a group opposed to any plans which might result in the sale of council homes.
Ms Burchill said: "I was inspired to give the money to this very worthy cause because I am sick and tired of the council's wholesale persecution of the indigenous working class.
"All the fine talk of 'diversity' is ludicrous. Diversity to this council means a Brighton full of rich, gay, childless white people who don't place a strain on resources."
But Labour housing councillor Jack Hazelgrove said Ms Burchill's comments were nonsense.
He said: "If you look at our allocations for council homes you will see 95 per cent of them go to local working class people."
Last week The Argus exclusively revealed it could cost more than half a billion pounds to bring all the 13,000 houses and flats owned by the council up to standard.
Ms Burchill, who lives in Hove, gave £300 to the group Defend Council Housing after reading a letter from one of its members in The Argus.
She said: "One of my best friends, whose family has been in Brighton for generations, lives in a council house in Whitehawk and for years I have been horrified by what she has told me about the persistent badgering by the council that her family should volunteer to move out and be 'resettled' in Manchester for a few hundred quid."
Defend Council Housing fears council homes will be sold off to housing associations to meet the huge cost of repairs and improvements.
But the group believes the £650 million quoted is a false figure and argued that most people did not have significant problems with their homes and were happy.
Campaigner Ruth Arundell said the figure included all sorts of extras such as landscaping and provision for digital TV, which would not be needed for the stock to comply with the Government's Decent Homes Standard.
She said: "The council is always promoting what a wonderful diverse culture this city has, yet it is encouraging council tenants to move out, which is disgraceful.
"Julie read one of my letters in The Argus and about a week later she sent a cheque. We are a very small group and rely on donations.
"It's great to have such a well-known name on board.
"In some parts of the country, structurally sound council houses are being demolished and replaced with private housing, including luxury flats.
"All kinds of inducements are being offered to private companies to provide affordable housing but it will never replace the cheap and democratically accountable housing previous generations fought for and future generations need."
Coun Hazelgrove said the £650 million quoted covered 30 years and was mainly aspirational.
He said the council would be working closely with tenants to determine what improvements were necessary.
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