Facebook has pledged $1 Billion to support the affordable housing crisis in California for the next decade. In a blog post this Tuesday, Facebook CFO David Wehner said that they are collaborating with state of California and Governor Gavin Newsom in an effort to provide economical housing solution to the state. The hopes are that this initiative will create “up to 20,000 new housing units” in the area.
California is currently caught up in a serious housing crisis impacting the entire state. The problem is most prominent in the Bay Area where the presence of big companies and their highly paid workers have aggravated the issue.
Tech giants coming to aid for messed up public situations is not a rare occurrence anymore. Microsoft and Amazon have already announced initiatives in Seattle. Google has recently announced a $1 Billion 10 year pledge, and now Facebook is also joining the bandwagon.
However, the $1 Billion is not something which will be going directly in the hand of California government to spend on their discretion, but it is properly bifurcated into different initiatives.
$250 Million will go into collaboration with California government for creating mixed income housing in the excess state-owned land where housing is scarce. $225 Million is committed for Facebook owned lands zoned for housing in Menlo Park. $150 Million will be contributed to The Bay’s Future Fund, an investment fund for affordable housing. And $25 million will go for the housing of workers in Santa Clara and San Mateo counties. The next chunk of $350 Million will be set aside for additional commitments.
The Government of California has appreciated the efforts of the social media giant.
California Governor stated in a blog post;
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.