The federal government has reached an agreement with the City of Vancouver to fast-track the development of 3,200 new homes in the next three years.

Ottawa will provide the city with $115 million from the Housing Accelerator Fund, Prime Minister Justin Trudeau announced Friday. The fund is designed to cut red tape and fast-track the construction of 250,000 homes across Canada.

Many of the projects are expected to be multi-family rental projects as Ottawa seeks to reduce a chronic housing shortage and all levels of government aim to develop more high-density and transit-oriented residential projects.

“The City of Vancouver is grateful to the Government of Canada for their support as we continue working together to build more homes faster and create a brighter future for all Vancouverites,” said Ken Sim, Vancouver’s mayor, in a news release.