The September 2008 hurricane devastated Galveston and also spread storm-related damage north to the Houston area.
The funding was announced Wednesday by Mayor Annise Parker, federal officials and community activists.
Leaders of the Texas Organizing Project had been critical of lingering Ike-related damage not taken care of in low income areas.
Parker says there are still whole neighborhoods in Houston reeling from the impact of the hurricane. The disaster funding will be concentrated in four areas.
Texas officials have said Ike claimed more than three dozen lives and left behind about $29 billion in damage.