The federal government has committed to allocating billions of dollars of new funds to address the housing crisis in Canada, but much of it will only be available to provinces and territories that agree to certain conditions, Prime Minister Justin Trudeau announced on Tuesday.

Speaking in Dartmouth, New South Wales, Trudeau announced that the federal government is creating a new $6 billion Canadian Housing Infrastructure Fund.

He said, "We face the challenge of building more homes, faster, in this country directly... This is how we will address the shortage of housing options for Canadians, this is how we will make young generations who feel left behind because housing costs are too high, feel more fairness."

The funds will be allocated to building and upgrading water, wastewater, stormwater, and solid waste infrastructure, which cities have said is critical to building more housing.

The Prime Minister's office said in a press release that of the $6 billion in the fund, $1 billion will be allocated directly to municipalities to meet "urgent infrastructure needs."

The conditions include commitments to build "missing middle" homes.

The other $5 billion will be allocated to provinces and territories – but they can only access the funds if they make certain commitments.

This includes allowing more "missing middle" homes, including duplexes, triplexes, detached houses, and multi-unit buildings, and imposing a three-year freeze on development fees for cities with populations over 300,000.

The federal government said provinces will have until January 1 to secure agreements. Territories will have until April 1.

Trudeau announced on Tuesday that the federal government is also working to provide its Housing Accelerator Fund with an additional $400 million over three years, which it says will help build another 12,000 homes.

This announcement is the latest in a series of announcements from the federal government as Trudeau and his ministers spread across the country ahead of the eagerly awaited federal budget on April 16.

On Monday, Trudeau announced $1 billion for the national school food program. And last week, he announced new measures for renters, including a renters' rights bill.