Muir Group Housing Association has appointed contractors to carry out £2.5m of work in 250 houses in the Glebe Green estate, Winsford, Cheshire.
Warmer Heating and Hamilton Building Contractors have been appointed to fit new heating systems and external cladding.
The scheme is partly funded by the Government's Community Energy Savings Programme and will be done at no cost to Muir Group residents.
"This work will help our residents to save money through lower energy bills while at the same time modernising the look of their homes," said Rebecca Finbow, environmental officer with Muir Group.
"We have been working with residents to keep them well-informed about the project and ensure there is as little disruption to them as possible."
Muir Group held an open day with residents to discuss the project and a resident from the neighbourhood, Michelle Billington, was employed by Warmer Heating as a resident liaison officer. Another resident, John Percival, has gained employment as an apprentice electrician with Warmer Heating.
The project is due to be completed by the end of October and residents can see a plan of when work will be carried out on their homes in the Glebe Green Community House.
"This will have a long-lasting impact on not only the appearance of the whole neighbourhood but also on the energy efficiency of the homes. If residents are aware of how to use their upgraded heating systems in an effective way, because the homes have been re-cladded with insulating materials, they should be able to make savings on their energy bills," said Finbow.
"This is of course great news for the environment but it also has big practical benefits for our residents as they will have lower energy bills and warmer homes."