Seventy per cent of council homes in Eastbourne are failing Government-set decency standards, a survey has revealed.
A further 26 per cent of council homes in the resort are expected to fail the standard by 2010 as building parts reach the end of their lifespan.
The Government has pledged to bring all council homes up to scratch by 2010.
But many authorities are being hampered in their efforts by the lack of investment.
It will cost Eastbourne Borough Council about £18 million to meet the standard after 2,799 homes failed out of a total of 4,026.
The authority predicts it needs to invest a further £67.7 million on its homes over the next ten years, leaving the council with a total bill of £85.7 million.
Consultants FPD Savills conducted a full survey of the council's housing stock condition.
They examined the repairs needed as well as carrying out an asbestos review and an energy efficiency audit.
The survey, to be discussed by the council's Cabinet tonight, says reroofing, rewiring and boiler replacements are needed in some cases, along with modernisation of bathrooms, kitchens and windows.
But raising the money needed for the work is a problem for the council.
The authority was forced to set England's fourth highest council tax rise this year - an inflation-busting 38 per cent.
Cuts totalling £600,000 have already been earmarked in the budgets for tourism, parks and gardens and theatres.
Councillor Mary Pooley, chairwoman of the council's tenants' advisory committee, said: "Seventy per cent is a high figure but I still think we have a very high standard of council housing in Eastbourne.
"We still have time to improve and we will be working hard to raise standards but it is not something that can be done in a short space of time."
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