Council tenants' organisations are to be given the power to apply for anti-social behaviour orders to tackle nuisance residents, under powers to be sought from Parliament on Tuesday.
Tony Blair hailed the move as he co-chaired a Downing Street summit with Communities Secretary Ruth Kelly.
Talking to the leaders of management groups, the Prime Minister said they would be able to take more responsibility for quality of life issues in their areas.
"No-one knows better how to transform a community than the people that live there," he said.
"Nothing undermines a sense of community more than the kind of disruptive and aggressive actions that we associate with anti-social behaviour.
"Local people are increasingly playing a bigger role in the decisions that affect them and the areas in which they live.
"The new extended powers will ensure that those people who are most affected by anti-social behaviour can take the swift action that is needed to stamp it out."
Mr Blair and Ms Kelly also set out an additional £485 million of investment in rundown council housing.
Tenant management organisations and arms-length management organisations already have control of certain day-to-day responsibilities such as rent collection and house allocations.
But under regulations to be laid before Parliament on Tuesday, they will also be allowed to use Asbos to clamp down on community problems ranging from noisy neighbours to race-hate crime.
