Funding for the work is being provided by the Bishopwearmouth Townscape Heritage Scheme, supported by the National Lottery Heritage Fund and Sunderland City Council.
The Trust will use the grant to rebuild the outer rear boundary of the Grade II listed Almshouses, replacing it with a reclaimed limestone wall and repairing an internal 19th century wall.
The planned works will reflect the historic character of the Almshouses, built in 1863 and designed by Edward Robert Robson who later became the architect for Durham Cathedral.
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The almshouses were originally built to house the poor of the parish as an alternative to workhouses, and a plaque now commemorates the building's history.
Sunderland City Council was awarded £1.9m in funding from the National Lottery Heritage Fund for the Bishopwearmouth Townscape Heritage Scheme in 2018. A further £300k from the council, plus contributions from local building owners and tenants as part of the overall regeneration of the Minster Quarter will see an expected £3m invested over the five-year scheme.
Cllr Kevin Johnston, Sunderland City Council's Portfolio Holder for Dynamic City, said: "The Bishopwearmouth Townscape Heritage Scheme is transforming the look and feel of some of Sunderland's most historic and iconic locations. I am delighted to see this latest grant go towards retaining another important piece of the city's history."
North east businesses Blackburn Marshall Construction and Beaumont Brown Architects will start the work next month.
