The City of Hamilton and the federal government have reached an agreement that will see the city add more than 2,600 homes over the next three years and 9,000 units over the next decade.

The deal, reached under the federal Housing Accelerator Fund, includes $93.5 million in funding for the project, which will see homes developed on city land near future light-rail transit stops.

Hamilton has also agreed to alter their zoning laws to allow for four residential units to be built on a single lot.

“I want Hamilton to be a great place to live for people of all ages and income levels,” Hamilton Mayor Andrea Horwath said in a news release. “To keep our city affordable, we need to introduce a range of new housing options and introduce innovative new approaches to creating and preserving housing.”

Hamilton is now the third city to reach an agreement with Ottawa through the national housing fund, a $4-billion program first announced in 2022 designed to help cities cut red tape and add housing.

Last month, the federal government announced it was giving $74 million to the City of London to add 2,000 new homes, while last week Vaughan, Ont. reached a $59-million deal to build 1,700 new homes.

London and Vaughan have also agreed to the same bylaw changes and public transit commitments as Hamilton.

Last month, Housing Minister Sean Fraser told BNN Bloomberg the government has received “hundreds and hundreds” of applications from cities across the country.