Facebook commits $1b, partners with the state of California to address housing affordability

Facebook has plans to commit $1 billion to help address the affordable housing crisis in California, and in other communities that have similar challenges.

The investment will go toward creating up to 20,000 new housing units to help essential workers such as teachers, nurses and first responders to live closer to the communities that rely on them.

And as part of its commitment, Facebook partnered with California Governor Gavin Newsom and the State of California to help 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.”

The following is the breakdown of the $1 billion investment, which will be invested over the next decade:

• $250 million to a partnership with the State of California for mixed-income housing on excess state-owned land in communities where housing is scarce. The public-private partnership ensures that incremental new housing supply is brought to the market segments that need it most.
• $150 million for production of affordable housing, including housing for the homeless, in the San Francisco Bay Area. It will contribute to the Bay’s Future Fund, the affordable housing investment fund of Partnership for the Bay’s Future, to work toward a more livable, equitable, and racially and economically diverse Bay Area.
• $225 million in land in Menlo Park. Facebook previously purchased the land, which is now zoned for housing. It will produce more than 1,500 units of mixed-income housing.
• $25 million to build teacher and essential worker housing on public land for school districts in San Mateo and Santa Clara counties. The partnership with Santa Clara County and local school districts, announced October 17, will help fund construction of housing on county-owned land for teachers and other essential workers, enabling them to live near the communities where they work.
• $350 million in funds for additional commitments based on the rollout and effectiveness of the initiatives described above. These funds will also be used to support more affordable housing in other communities where Facebook has offices.