Prime Minister Justin Trudeau signed a funding agreement worth $59 million with the city government to build housing in Vaughan, Ontario.

This funding will be part of the Housing Accelerator Fund and will see thousands of housing units built over the next three to ten years under this agreement.

Vaughan is the second city in Canada to partner with the government under the Housing Accelerator Fund. Last month, the city of London, Ontario also signed an agreement with the Liberal government under this fund.

According to a press release, the funding will accelerate the construction of more than 1,700 new housing units over the next three years and help build more than 40,000 homes over the next ten years.

Vaughan's mayor, Stephen Del Duca, described the announcement as "huge" for the residents of his city.

Del Duca said, "Thank you so much for this investment in our city... to help ensure we have more affordable and accessible housing options for the people living in this great city."

Trudeau also noted that the agreement will allow for the construction of high-density housing near public transportation, including GO train stations and subways.

A government statement added that the agreement will also prioritize building affordable apartments and housing and overhauling outdated permitting systems to expedite the development process.

The Housing Accelerator Fund, first announced during the 2021 election campaign and introduced in the 2022 federal budget, provides $4 billion by the 2026-2027 period to build more homes in cities.

The goal of the Housing Accelerator Fund is to build more housing units by streamlining land use planning and development approvals.

Municipal governments with populations over 10,000 can apply to participate in the fund by proposing new initiatives that would increase the annual housing construction rate in their cities by at least 10 percent.