A third derelict building identified by Police as a crack house is to be renovated and eventually transformed into apartments.

The bulldozers were banned from moving in on the two-storey property on Union Street, Hamilton, because technical experts believe the basic structure is sound and the building can be saved.

The Corporation of Hamilton has now volunteered to board up the property as a temporary measure before renovation work starts.

And Police have warned that they will prosecute anyone found trespassing on the property once it has been boarded up.

The Bermuda Housing Corporation is now holding talks with the property's owners in a bid to strike up some sort of deal to get the house back to a habitable state. It is understood the Corporation is prepared to provide a loan to the owners who will then make sure that the building is restored. The loan will be paid back once the property is rented out.

Public Safety Minister Maxwell Burgess's personal crusade against crack houses has come under fire from some residents who argue that properties knocked down could in fact be refurbished and rented out to families in need.

So far two houses, in King's Court, Devonshire and Harlem Heights, Hamilton Parish, have been reduced to rubble in the combined Police and Government crackdown. Further properties are expected to be razed to the ground in the coming weeks.

Yesterday Mr. Burgess, accompanied by Housing Minister Wayne Furbert and senior Police officers, was given a guided tour of the building.

And he took the opportunity to hit back at the critics, claiming that those structures that could be saved, will be saved.

"We are trying not to knock down buildings if they can be saved,'' Mr.

Burgess said.

"This is one example that is structurally sound and it also has some good, old-time style architectural features.

"We have been in contact with the owners and we are working something out so that the house can be given back to the community.

"In the meantime the Corporation of Hamilton has agreed to board up the building free of charge.'' Hamilton Corporation secretary Roger Sherratt also gave the clampdown his backing.

"It's laudable that this committee has been set up and is working to solve this problem so we are very pleased to cooperate,'' he said.

"We were aware of several empty houses in Hamilton that were gradually becoming derelict and were being used for illegal activity. This was one such house that came to our attention.

"We have been looking at working with the owners to try and get this problem resolved. We have agreed to get the building boarded up -- we want to do that properly so that it will keep illegal activity out.'' Mr. Sherratt went on to say that other derelict buildings in the city could be renovated if suitable deals can be worked out.

"Several of the derelict buildings that we have in the city are of some historical interest and very attractive,'' he said.

"We are working with other agencies to see if plans can be made to restore these buildings.''