The federal government is investing $93.5 million to fast-track the construction of 2,600 new housing units in Hamilton over the next three years.

The feds and Hamilton have reached an agreement that will spur the construction of 9,000 homes in the Southern Ontario city over the next 10 years, the two governments said in a news release.

Ottawa is making the investment through its $4-billion Housing Accelerator Fund.

The investment is expected to generate hundreds of new rental apartment units and several other multi-residential real estate development projects. The federal government and city said the deal will remove barriers to housing development faster and allow for high-density developments near rapid transit.

The federal government is also investing $59 million the development of 1,700 new housing units in Vaughan, Ont. and $74 million in 2,000 new residences in London, Ont.

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