Canada to give Toronto over C$471 million to help fight housing crisis

OTTAWA (Reuters) -Canada's federal government will give more than C$471 million ($354 million) to Toronto, the country's largest city, to help it build more housing and alleviate a shelter crisis, Prime Minister Justin Trudeau said on Thursday.

Trudeau, whose popularity has slumped in recent months amid complaints about the affordability of housing, said the money would allow Toronto to fast-track nearly 12,000 new housing units over the next three years.

"It's a great city. If we want to keep it great, we have to make homes more affordable," he told a televised news conference in Toronto.

The money will come from a special C$4 billion fund which pays cities that agree to loosen zoning rules that protect neighborhoods dominated by single-family homes.

As part of a deal with the federal government, Toronto will work to streamline zoning bylaw approvals, expand affordable rental programs, cut red tape, and unlock non-market housing.

The Liberal government has made a series of similar announcements across the country in recent weeks.

The price of shelter is rising as a result of higher interest rates, a shortage of accommodation and a population growing at its fastest rate in more than 60 years.

The pressures are particularly acute in Toronto, which has around 3 million people, making it the biggest city by far in a country with a population of just over 40 million.

Ottawa said last week that it planned to revive a post-World War Two strategy of using pre-approved designs so homes can be built quickly and economically.

Polls show the Liberals, in power since November 2015, would lose badly to the opposition right-of-center Conservatives if an election were held now.

($1 = 1.3310 Canadian dollars)

(Reporting by David Ljunggren; Editing by Paul Simao and Jonathan Oatis)