Waterloo Regional Council approved two measures on Wednesday night to build new affordable housing in the area.
In one measure, council approved a measure that will allow the region to enter into an agreement with the Canada Mortgage and Housing Corp., which will see new funding from the federal government for affordable housing.
When asked, the sector said the funding it would receive would be subject to restrictions from the federal government.
Funding will come from the Rapid Housing Initiative and must be spent on the new permanent units within 18 months.
The region says the previous round of funding from the Rapid Housing Initiative has led to the construction of 147 new affordable homes across the region.
In addition, the council also approved the donation of surplus property to support the non-profit organization Love Your Neighbor Communities (LYNC) to build 29 affordable housing units in New Hamburg.
The area says a plan has been developed by LYNC to build market rent units at 34 Peel Street.
It added that commitment from the sector will allow LYNC to begin fundraising, along with planning approval and raising funds.