The agency has announced it will give £88,000 to ease problems at Fellside Meadows, Waldridge, Chester-le-Street.
North Durham Labour MP Kevan Jones and Durham County councillors Katherine Henig and Keith Davidson, who represent the Chester-le-Street South division, said the award was good news for the area.
Durham County Council was successful in its bid for £88,000 to construct a flood wall between the housing estate and neighbouring fields.
The scheme, which will begin in March, follows work that has already been carried out by the authority to alleviate the problems faced by residents.
Mr Jones said: “I am very pleased that the council’s bid has been successful.
“Having previously met with residents, I know this issue has been causing many of them a good deal of concern.
“Both local councillors and officers deserve credit for ensuring the success of this bid, and hopefully the work proposed will give residents some peace of mind.”
In a joint statement, Councillors Henig and Davidson said: “This scheme will deal with water flowing from the fields in to the houses, which was a key factor in the floods on Thunder Thursday.
“The residents have fought a strong campaign, and as the local councillors we are delighted that the project has now got the funding to go ahead.”
The funding for the work at Waldridge is part of a wider package of more than £4m that will be used on flood prevention work around the county over the next 14 months.
Brian Stephens, county council cabinet member for neighbourhoods and local, said: “It is particularly pleasing that, at a time when all councils are facing financial difficulties, we have been able to secure the funding for this work which will bring huge benefits to local people.”