The federal government will be providing $4.9 million for the construction of a new 69-unit affordable housing complex at 356 Dundas Street.

London North Centre MP Peter Fragiskatos made the announcement about the new rental units on Wednesday.

"This investment is wonderful news for the London middle-income families that will move into these new affordable rental housing units," Fragiskatos said in a statement. "It will contribute to build a foundation for their social and economic success as well as help create new jobs and stimulate our local economy."

The funding comes from the Canada Mortgage and Housing Corporation's Construction Financing Initiative, which also provides low-interest loans to developers.

The energy efficient units in the six-storey building are all expected to have rental rates that are under the 30 per cent of median household income in the area. In addition 17 per cent will be accessible.

The building is already under construction. No final completion date has yet been released.