Council houses in Sedgemoor are set to be refurbished with a £25m grant from the Homes and Communities Agency.
The money will be used by Homes in Sedgemoor and Sedgemoor District Council over the next four years.
Chris Mosely, chairman of residents' group, Sedgemoor Tenants Voice, said: "Some of our properties are absolutely disgusting so this money is going to change people's lives tremendously."
The council has two contractors in place who are set to start work in May.
The district council set up Homes in Sedgemoor to manage their properties in 2007.
It followed a 2003 survey which found 80% of the council's stock of 4,200 homes did not meet the national Decent Homes standards.
A Decent Home is defined as property which is wind and weather tight, warm, with kitchens and bathrooms less than 10 years old.
The definition, created under the former Labour government, went above previous housing standards.
Bob Brown, corporate director at Sedgemoor, said: "We didn't have the money to invest because of the housing funding regime that existed at the time.
"We ensured that our properties met the required standards of repair and maintenance but were not able to invest in the significant upgrading required by the Decent Homes standards."
Gary Orr, chief executive at Homes in Sedgemoor, said the work would transform much of the housing stock across Sedgemoor.
The work include installing new kitchens, bathrooms and central heating.