The Ontario government granted Ottawa about $37.5 million to fund achieving "significant progress" towards the 2023 housing target.

According to the Canada Mortgage and Housing Corporation, Ottawa finished last year by building 10,313 new homes - 1,000 homes fewer than the target set by the province.

However, Ontario Premier Doug Ford announced the new funds on Friday.

He said that the progress made by the city means thousands of families "will have a roof over [their heads]."

Ford added: "I find that absolutely amazing."

The funds come from Ontario's Rapid Housing Fund, a three-year $1.2 billion program aimed at encouraging municipalities to address the housing supply shortage.

According to the province, municipalities can receive funds from the fund if they achieve at least 80% of their allocated housing target for this year, with additional funds if they exceed the target.

Ottawa Mayor Mark Sutcliffe said on Friday he is "very proud" that the city met the minimum funding.

Sutcliffe added: "We all share the same goal, which is to build more homes and build them as quickly as possible to keep the dream of homeownership alive for young families."

In December, the city achieved only 64 percent of its target, but the big leap at the end of the year pushed this figure forward by about 30 percentage points.

Funding linked to housing starts is likely out of Ottawa's reach.

According to the mayor, the newly announced funding will help "create the conditions for builders and community organizations to build homes faster."

Ford said he hopes to return to Ottawa next year with a bigger check.