Local Government Minister Hilary Armstrong was today holding up City of York Council as one of Britain's finest local authorities.
She was awarding it with Beacon Status, making it an example for other councils to follow.
The praise was given to York's housing maintenance and improvements service, one of only five to make the grade in the housing category from 420 councils in England and Wales.
Mrs Armstrong toured recently- modernised homes in the Groves before making the announcement.
She chose York as a base to hand out awards to all 42 councils being made beacons in recognition of their work on a variety of services.
Council leader Rod Hills said: "It is a tremendous honour for York to receive this national accolade and we are very proud of our achievement and the tenants and staff who worked so hard to make the service a success.
"The Beacon Status awards have been designed by the Government to reward excellence and this award is a clear statement that City of York Council is providing what the Government wants - high quality, value-for-money services with a strong customer focus for local people."
For the past four years the council's housing services department has been recognised as one of only two in Yorkshire and Humberside which performs well above average.
A recent survey showed that 87 per cent of the city's tenants were satisfied with the service.
The council will now spend the next 18 months as a model for other authorities, with staff travelling the country to pass on good practices.
Mrs Armstrong said: "All the new Beacon councils have demonstrated excellence in one of the service areas that we chose for the first year of the scheme and their local communities are already enjoying high standards as a result. We want all local people to have access to such high-quality services."
Roy Hearn, chairman of the federation of residents' and community associations in York, praised the council's consultation methods and tenants' choice policy. He added: "I feel the council do deserve this, because they do a lot for residents that other councils don't do."
Coun Viv Kind, who chairs the council's housing committee, said: "It's a day when all of us can be very proud of all the activities over the last eight or nine years."
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