Facebook announces $1 billion investment package to bolster affordable housing

October 23, 2019                                              By: Kate Bradshaw/Almanac

Facebook, the social media behemoth headquartered in Menlo Park, announced Tuesday, Oct. 22, that it plans to invest $1 billion over the next decade toward affordable housing in California and elsewhere, including some existing commitments.

Facebook has temporarily subsidized rent for 22 local teacher households, including that of Konstance Kirkendoll, a teacher at Beechwood Elementary School in Belle Haven, as part of an ongoing pilot program. Last week, the company announced a $25 million commitment toward housing for those teacher and others in San Mateo and Santa Clara counties, just one of a number of major investment commitments toward affordable housing Facebook announced Oct. 22. (Photo by Michelle Le | 2016.)

In an announcement posted on the company's newsroom website, Facebook's Chief Financial Officer David Wehner stated that the funds will go toward creating up to 20,000 new housing units "to help essential workers such as teachers, nurses and first responders live closer to the communities that rely on them."

These job types typically represent what policymakers refer to as the so-called "missing middle," or middle-income earners who don't qualify for existing subsidy programs but are increasingly not earning enough to live in the Bay Area.

Wehner announced a new $250 million investment from Facebook for a partnership with the state of California aimed at developing mixed-income housing on excess state-owned land "in communities where housing is scarce."

(This refers to areas where affordable housing and a housing supply are scarce compared with the demand, not necessarily rural areas where there is a low housing supply overall, a Facebook spokesperson confirmed via email.)

As part of the press release, Gov. Gavin Newsom said, “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.”.....................Read More