The money will flow through the federal Housing Accelerator program and be used to eliminate barriers to getting the homes built.
The city passed a motion last month declaring a homelessness and housing emergency.
Sohi said Monday action had to be taken because of a jump in homelessness in the city and people were dying.
Sohi went on to say the new affordable housing will help Edmonton residents create families in the city.
The city expects another 50-100 units to be built in the near future.
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