The federal government has announced a series of initiatives to fund new housing construction in Toronto.

Through its Build Canada Homes Agency, which aims to build affordable housing at scale, the government is focusing on upgrading housing infrastructure in the city to support new construction.

Specifically, the government has announced $283 million to upgrade Toronto's Black Creek sewer infrastructure.

Built in the 1960s, the Black Creek trunk sewer currently serves over 350,000 residents. Population growth has stretched the system beyond its limits, leading to flooding and blocking approval of new housing developments.

The new investment, in partnership with the municipality, will support the construction of 17 kilometres of new infrastructure. Once complete, the project will enable the construction of up to 63,000 new homes in the Downsview area, reduce the risk of flooding and protect water quality, and create more than 65,000 jobs.

The City of Toronto is supplementing the project with its own investment of more than $425 million.

"Toronto is one of the fastest-growing cities in Canada, and we're already hard at work building the affordable homes and infrastructure our residents need,” said Toronto Mayor Olivia Chow. “This investment from the federal government, alongside the City of Toronto's $425 million contribution, builds on that momentum, helping us unlock new housing opportunities and transform communities like Downsview."

Build Canada Homes also announced its first housing development project, delivering 540 new homes at Arbo Downsview in Toronto using modern methods of construction.

At least 40 percent of the units on the Arbo Downsview site will be affordable, with a mix of studios, one-, two-, and three-bedroom homes, supporting middle class families.

"Build Canada Homes is advancing new approaches to housing delivery,” said CEO Ana Bailão. “Our first development in Toronto will help demonstrate how coordinated public-private partnerships and innovation in home building can support the accelerated construction of below-market homes in growing communities."