Prime Minister Justin Trudeau announced on Tuesday that the federal government will create 17,000 new homes through additional funding for projects including the rent-to-own program under the federal government's Affordable Housing Fund and the launch of the third phase of the Rapid Housing Initiative.

Trudeau's announcement included funding for three projects totaling $2 billion to build thousands of new units, many of which will be allocated to affordable units. The $2 billion amount includes previously announced funding from the last two federal budgets.

Among the three projects, two fall under the Affordable Housing Innovation Fund, which was launched in 2016 in an attempt to create more affordable housing by partnering with private sector groups, non-profit organizations, community housing groups, Indigenous communities, and various levels of government.

With Housing Minister Ahmed Hussen, Trudeau said the federal government plans to create 10,800 new homes - 6,000 of which will be allocated for affordable units - as part of the Affordable Housing Innovation Fund.

Meanwhile, the application process is now open for the five-year rent-to-own initiative.

The project will allow housing providers "interested in developing, testing, and scaling rent-to-own models and projects" to apply for government funding.

Additionally, Trudeau announced the third phase of the federal government's Rapid Housing Initiative to create 4,500 affordable housing units, partially dedicated to women and those at risk of homelessness.

Trudeau said the Rapid Housing Initiative was established in 2020 partly in response to the increasing need to house people during the COVID-19 pandemic.

This initiative is designed to facilitate faster construction, convert existing spaces into housing, while specifically targeting the needs of vulnerable populations.