- Facebook CFO David Wehner recently announced that the company is committing $1 billion to address the affordable housing crisis in California
Facebook Chief Financial Officer David Wehner has announced that the company is committing $1 billion to address the affordable housing crisis in California and other areas that have similar challenges. A portion of the investment will go towards creating up to 20,000 new housing units to help essential workers like teachers, nurses, and first responders live closer to the communities that rely on them.
Wehner also pointed out that Facebook partnered with California Governor Gavin Newsom and the State of California to accelerate progress on this issue.
“Access to more affordable housing for all families is key to addressing economic inequality and restoring social mobility in California and beyond,” said Governor Newsom. “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. Public-private partnerships around excess land is an important component in moving us forward.”
In the city of San Francisco, a family of four making more than $100,000 per year is considered low-income. And the affordable housing issue affects people across middle-class and low-income families.
A few years ago, Facebook partnered with community groups and local governments to set up the $75 million Catalyst Housing Fund for addressing housing issues near the company’s headquarters in Menlo Park. And earlier this year, Facebook helped launch the $500 million Partnership for the Bay’s Future which aims to protect, produce, and preserve 175,000 homes for all in the Bay Area.
Plus Facebook established a pilot teacher housing program, affordable housing preservation fund, and support for tenant legal services.
As part of this initiative, Facebook will be spending $250 million in a partnership with the State of California for mixed-income housing on state-owned land in communities where housing is scarce. And $150 million will be spent for production of affordable housing (including housing for the homeless in the San Francisco Bay Area) with contributions to the Bay’s Future Fund. Plus $225 million will be spent on land in Menlo Park that Facebook previously purchased — which is now zoned for housing (1,500 units of mixed-income housing). Facebook will spend $25 million to build teacher and essential worker housing on public land for school districts in San Mateo and Santa Clara Counties. Earmarked for additional commitments based on the rollout and effectiveness of the aforementioned initiatives is $350 million.
Featured Photo Credit: David Wehner
