Chester & District Housing Trust is spending £6m installing high performance thermal rendering as part of the refurbishment of six tower blocks in Blacon.
CDHT has started phase one of its work at the twelve-storey high rise blocks to improve thermal performance as well as fitting new balconies and entrances with canopies.
Residents in 216 flats in Glyn Garth, Nant Peris and Plas Dinas towers are also benefiting from refurbished communal areas and external landscape improvements.
In phase two will involve St Oswald's, St George's and St Anne's high rises in Chester city centre where there are 180 residents in total.
As well as £4m from CDHT there has been funding from the European Regional Development Fund, Cheshire West & Chester Council and British Gas.
David Soothill, CDHT assistant director for asset management and development, said: "CDHT has an excellent track record of securing grant funding to bring external investment in to Cheshire and we are delighted to have worked with Cheshire West & Chester Council on this project. This investment is part of our ongoing commitment to improve our housing stock and make our communities more sustainable. The rendering will significantly enhance the thermal performance of the building, which will help to cut bills. With fuel prices rising, this will help reduce fuel poverty for our residents. Another important factor is that both phases will have a beneficial impact on the city of Chester as both sites are located in gateway entrances to the city."