Facebook will invest $1B over the next decade in efforts to help
alleviate California’s housing crisis, Facebook Chief Financial Officer
David Wehner wrote in a blog post Tuesday.
The social network company’s investment will amount to up to 20,000
new housing units through a combination of public-private partnerships,
loans and development on Facebook-owned land in its hometown of Menlo
Park.
Facebook’s announcement comes on the heels of Google’s $1B pledge
to fund housing development. Both are in response to the state’s
worsening housing crisis. California’s poverty rate of 18.2% is one of
the highest in the nation, according to the U.S. Census Bureau, and
consulting firm McKinsey estimates the state’s housing shortage costs
California $140B per year in lost economic output.
For its part, Facebook said it will use $225M of land it owns to
build 1,500 units of mixed-income housing, though it is unclear which
builders it will partner with. Facebook did not immediately respond to a
request for comment.
In addition, the company is committing $250M to a partnership with
the state of California for more mixed-income housing, in this case on
state-owned land in undisclosed communities.
Facebook will also invest $150M in the affordable housing
investment fund of Partnership for the Bay’s Future, a housing group
offering various affordable housing loans, and $25M to build teacher and
workforce housing in partnership with San Mateo and Santa Clara
counties. The remaining $350M will then be allocated to efforts deemed
successful, according to the company.
“State government cannot solve housing affordability alone, we need
others to join Facebook in stepping up. Progress requires partnership
with the private sector and philanthropy to change the status quo and
address the cost crisis our state is facing,” Gov. Gavin Newsom said in a
statement.
No comments:
Post a Comment