Councillors agreed today, 17 May that the funding will be used to carry out external repair works to homes on Victoria Road in Torry.
In addition, community green spaces will be improved for residents in the area.
A number of back gardens in Tullos Place will be transformed by removing the washhouses and carrying out landscaping works.
Housing officers will now carry out consultations with all residents, including private homeowners, to seek feedback on the plans.
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Repairs works at Victoria Road are expected to cost up to £806,000. The council will fund £428,571 through the housing revenue account, with the remaining contributions coming from SITA (Scottish Landfill Communities Trust) and private home owners.
The environmental works at Tullos Place, Tullos Circle and Grampian Place are expected to cost £379,000, which will be met by the council and SITA.
Cllr Neil Cooney said: "These projects represent considerable investment not just in housing stock and the built environment but also within our communities by providing more outside amenities for residents to use as well as improving the overall look and impression of the area.
"The works will make a real difference for residents living in the area and form part of ongoing plans for regeneration in the Torry area."
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