The federal government is investing $925 million in 20 rental-housing projects in Montreal.

The investment will be in the form of fully repayable low-interest loans, federal officials announced Thursday at a news conference in the city.

The money will be used to construct 2,976 purpose-built homes in Montreal and on the city’s north and south shores. Funds will be provided through the federal government’s Rental Construction Financing Initiative (RCFi).

RCFi complements national housing strategy programs that focus on funding affordable housing units. The federal money comes as opponents are seeking to scrap the City of Montreal’s housing bylaw, which has not led to any new affordable housing projects in its two years of existence.

Citing high costs, developers have opted to pay fines or relinquish properties instead.

Ottawa says RCFi is encouraging the development of more than 71,000 rental units.