South Kesteven received zero stars, out a possible three, in an Audit Commission report published in May.

Now Valerie Hayllor, who has worked in housing for 25 years with councils and associations, has joined the Grantham-based authority.

She said: "My objective is to set up a tenancy services team that is fully focused on what tenants want."

She added: "I am experienced in setting up new organisations and developing very strong customer-focused services."

The Audit Commission found homeless and vulnerable people - and others on low incomes - are not being offered the housing they needed in South Kesteven.

It said the council fell well short of even its "own limited targets". The commission will continue to monitor the council with a new report in 2006.