A Council-wide policy on the way profits from land sales are dished out to communities is to be discussed tomorrow in the wake of a row on one estate.

Bradford Council's executive committee will meet to discuss the way money derived from regeneration schemes is allocated to replace the current "ad hoc" arrangements.

It comes after allegations from residents on the Allerton estate that the Council is sitting on a pile of cash that does not belong to it. The money - around £500,000 - has accrued in capital receipts from land sales for new housing on the regenerated estate.

They say that, under an agreement approved by the Council's former housing committee and policy and resources committee in 1994, money from the sale of land in the regeneration area was supposed to revert to the estate's Saffron Dean Community Association. But ever since the seven-year Estates Action scheme ended in 2002 the residents say the Council has refused to hand over the money.

Community Association chairman Nesta Holmes said: "I just want the Council to tell us if we are getting this money or not. This has been going on for a long time. Saffron Dean cannot move forward until we know if this money is coming to us. If it isn't we are going to work out how to get more money."

She claimed an officer in the Council's asset management department had said the agreement had been "unilaterally torn up."

But Councillor Simon Cooke, Bradford Council's executive member for regeneration, said he doubted that had been the form of words used. He admitted there had been other disputes at Royds, Wrose and Cottingley where money from land sales, which in some cases is still coming in, has been earmarked for other projects.

"We are taking reports to the executive committee on money derived from regeneration, looking at how we deal with situations like those at Allerton, Royds and Wrose. The random ad hoc basis that has been used is not good enough.

"There is a dispute about the interpretation of the agreement between the Council and the community association at Allerton.

"It concerns money from the sale of two pieces of land," he said. "The community association maintains that these two pieces of land were part of the original agreement. The Council says they weren't. We are saying 'Tell us what you want to spend the money on and it will be released'."

Nesta Holmes responded: "If he wants a list I can make sure it is done very quickly."

Richard Spencer, a former council officer responsible for regeneration at Allerton, welcomed Coun Cooke's moves.