The former Luton and Cambridge United manager has been confirmed as Matthew Bates’ replacement.
Pools ended their seven-game losing run on Saturday and Maidenhead but are still lagging behind in the chance for the National League play-offs.
Ex-Newcastle coach Money has been out of work since leaving Solihull Moors last October after just 26 days.
“We are delighted to welcome Richard back to the north-east,” chairman Raj Singh told the club’s website.
“It has been a detailed and necessarily difficult process because we have been inundated with applications from some exceptional candidates, so we have left nothing to chance by applying a professional approach to our recruitment.
“Ultimately, Richard was somebody who was very impressive at interview, who has a detailed knowledge of the squad and who wanted to work with the backroom team of Ged and Ross, who have really impressed during their time at the Club.
“Richard’s record at this level speaks for itself – he has regularly reached the play-offs and has been promoted from the division, as well as enjoying success in the FA Trophy.
“He brings the knowledge and experience we need to come to terms with the task of finding a way of competing in the National League, as well as an ability to assist us in building for the long-term.”