Plans to breathe new life into the Highfield area of Keighley are to go before Bradford Congress.
The Congress, a business forum, will then decide whether or not to submit the scheme to the Government.
The scheme, worth around £4 million over three years, would involve major environmental improvements and restorations to run-down privately-owned houses.
Residents would be heavily involved in thrashing out ideas and deciding what work is needed to improve Highfield.
The first year's improvements would involve high-profile projects such as play areas, safety measures, anti-drugs work, detached youth work, community rubbish skips and health campaigns.
Housing improvements would begin in the second year along with a shared ownership scheme to help people on low incomes buy homes.
The scheme is the brainchild of Keighley's Single Regeneration Budget (SRB) Partnership Board, which is already overseeing £18.7 million of Government spending across a wider area of the town.
The Highfield bid, if successful, would be funded from the government's new "SRB Round Five" programme aimed at boosting jobs, fighting crime and tackling social exclusion.
Bradford Council is putting forward Highfield because it suffers from poor housing, poverty, health problems, lack of investment and no community facilities.
Councillor Andy Mudd, chairman of Keighley's SRB board, told fellow members of the regeneration committee that the key to the Highfield bid was "sustainability".
He said: "It isn't about throwing money at a problem for three years then walking away.
"We want the detail of the plans to come from the people of Highfield. If that happens it's more likely they'll stick with it in the long-term."
White and Asian members of the 6,582-strong community came together recently as an action group to work on solving local problems.
The regeneration committee also approved a proposal for SRB round five cash to spend on sustainable regeneration across Bradford district.
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