The Waitakere City Council is offering loans to help bring 200 homes up to modern comfort and energy-efficiency standards from July.
Each loan is capped at $5000 and will top up the $1800 Government subsidy announced in last year's Budget.
"We have compelling studies to show that a warm, dry house will promote good health," said Deputy Mayor Penny Hulse.
Waitakere set aside $1 million for the loans, which must be repaid as part of the household rates.
Waitakere is the first Auckland council to join the WarmUp New Zealand programme of the Energy Efficiency and Conservation Authority.
The council only has money set aside for 2010-2011 and with the authority will press the new Auckland Council to keep it going and extend it.
About 20,000 Waitakere homes built before the 1978 insulation regulations could be eligible for help to retrofit insulation, clean heating and install water-saving devices.
Many homes are in areas where people have health problems and low incomes.
Council offers loans for warming homes
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