A windfall of £100m will pay for all of Stockton's 14,000 council homes to be improved before the end of the decade.
The massive partnership deal struck between Stockton Borough Council, its housing company and four leading contractors will transform the borough's housing stock.
Tristar Homes, which took over Stockton's council homes four years ago, has drawn up a comprehensive investment programme over the next seven to ten years.
Under the scheme most properties in Thornaby, Billingham and Stockton will be inspected and, in many cases, fitted with new bathrooms, kitchens, windows and central heating.
At current housing stock levels, each house will have about £7,140 spent on it before the decade is out.
But council bosses are hoping they can increase that amount to about £9,000 by shedding some properties through demolition and other means.
Neil Schneider, corporate director of service Stockton, said: "Across the borough there will be properties undergoing major improvement work not seen for decades.
"All houses will be made watertight and windproof, have new insulation fitted and be fitted out with modern facilities.
"It's great news because in recent years local councils haven't been able to spend much money on housing.
"Now we have £100m to spend, which is in addition to £44m we received from the Government earlier this year.
"Each house should eventually receive around £9,000. This should be possible because there are several hundred premises due to be demolished on Thornaby's Mandale estate."
The latest cash windfall comes after Stockton Council was given Government permission to borrow the money.
Work has already got under way on the second phase of the project which will see almost 3,000 homes renovated over the next 12 to 15 months.
Contractors brought in to carry out the work are Frank Haslam Milan, Connaught, Mears and Dunelm Property Services.
Francis Hayes, chairman of the board at Tristar Homes, said it had determined a 'decent' standard for all the properties identified for improvement.
He said: "We want to ensure that everyone gets the same high level of workmanship and this is why we have decided to enter into an agreement with four contractors.
"Their workforce will develop a commitment to the area and build up relationships with the tenants.
"It will give residents confidence that they are here today."
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