Housing chiefs said their plans to regenerate a rundown area have been boosted after they received £4.53m.
The Housing Market Renewal Fund cash is being added to £2.8m Redcar and Cleveland Council received last year.
The money will be spent over the next two years for the first stage of plans for South Bank, which the council said will make it a better place to live.
It will include the acquisition and clearance of 205 properties in the worst areas, 142 of which are empty.
'Sustainable community'
Council cabinet member for housing and neighbourhood renewal Councillor Chris Abbott said: "We are thrilled that we now have the cash to continue the good work in clearing areas and making it a better place for people to live.
"This isn't just about knocking down houses, it's about building a better and more sustainable community, one that we've promised the people of South Bank and one that they deserve and one that this cash will allow us to deliver."
Members of the council's renewal team have contacted residents who will be affected by the plans.
The council has already bought 70 of the properties, with deals agreed on another 13 and negotiations under way on others.