The City of Victoria, the City of Campbell River and the Town of Comox have partnered with the federal government to provide 900 homes within three years.
The agreement under the Housing Accelerator Fund provides $33.5 million to eliminate pre-existing barriers to building homes.
Victoria will receive $18 million, Campbell River $10 million and Comox $5 million.
The funding will help incentivize more housing by allowing greater density, eliminating rezoning and public hearings for affordable rental housing in the three communities.