More than 40 homes across six communities in Utopia have been upgraded through a joint federal and NT government initiative.

The $12.4 million works delivered new kitchens, living areas, bedrooms and bathrooms in homes across Arlparra, Atheley, Indaringinya, Inkawenyerre, Inkwelaye and Iylentye.

The six homelands were identified as priority areas by the Central Land Council and the peak body for Aboriginal housing in the NT, Aboriginal Housing Northern Territory.

CLC chief executive Les Turner said the program was making a tangible difference.

"Homelands housing upgrades across the CLC region through the HHIP have been a welcome contribution," he said.

"The funds have turned tin sheds into liveable dwellings and provided essential infrastructure like bathrooms and kitchens, enabling many people to live more healthily and happily on their ancestral lands."

The upgrades are part of the Homelands Housing and Infrastructure Program (HHIP), which will see more than 160 homelands across the NT receive repairs and improvements. The aim is to significantly lift living standards for First Nations families and communities.

The Commonwealth has committed $220 million to the HHIP, while the NT Government will contribute $40 million annually to essential homeland services such as clean water, reliable power and sanitation.

Federal Minister for Indigenous Australians, Malarndirri McCarthy, said the program was about more than just construction.

"These upgrades are much more than bricks and mortar – they are about improving the quality of life for First Nations families living in homelands, as part of our commitment to Closing the Gap," she said.

"The program plays a critical role in enhancing housing across the Northern Territory, working with Land Councils and communities."

Local federal MP and the government's Special Envoy for Remote Communities, Marion Scrymgour, said housing remains central to building stronger communities.

"I welcome the investment in the HHIP and the long term impacts it will have on the residents of these homelands," she said.

"Providing remote Territorians with access to suitable housing is the first step in building strong, vibrant communities."

NT Housing Minister Steve Edgington said the upgrades would deliver lasting benefits.

Upgraded housing, he said, "improves daily life, strengthens communities, and secures a better long-term future for Territorian families living on homelands".

"We know that better housing leads to improved wellbeing across the board — children perform better in school, and communities experience better health and employment outcomes," he added.