The federal government has reached an agreement with the City of Burnaby to fast-track the development of 1,290 new housing units in the next three years.

Ottawa will provide the city with $43 million from the Housing Accelerator Fund (HAF) administered by the Canada Mortgage and Housing Corporation.

Terry Beech, the citizens’ services minister, whose riding covers part of Burnaby, announced the investment during a news conference. HAF is designed to cut red tape and fast-track the construction of 250,000 homes across Canada.

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

“The support of our partners in the federal government through the Housing Accelerator Fund is integral to delivering affordable housing for Burnaby residents,” said Mike Hurley, Burnaby’s mayor, in a news release.