Ontario and Ottawa say they've reached a deal under the national housing strategy that will unlock $357 million in federal funding for the province.
The announcement comes after months of back and forth between the two levels of government over Ontario's affordable housing targets.
Ottawa had said it would withhold some affordable housing funding from the province because it didn't meet its targets and had an inadequate action plan.
Instead, the federal government said it would bypass the province and give the money directly to municipalities.
Ontario, on the other hand, had argued the federal government wasn't counting its progress properly.
A joint statement issued Tuesday morning says the deal involves a revised action plan from Ontario that includes more data and insights as to which housing projects benefitted from provincial investment.