Facebook announced Tuesday it will invest $1 billion over the next 10 years to combat the housing crisis in the Bay Area, California and across the nation.
The Menlo Park-based social media giant said the investment will go toward building and funding affordable housing, including 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."
Part of the commitment is partnering with the state of California to help address the pressing issue of affordable housing statewide.
Gov. Gavin Newsom released a statement in conjunction with the company's announcement:
"Access to more affordable housing for all families is key to addressing economic inequality and restoring social mobility in California and beyond," 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."
San Jose Mayor Sam Liccardo also responded to Facebook's investment.
"I applaud Facebook for stepping up to make this extraordinary $1 billion commitment toward our collective work to combat this housing crisis," Liccardo said in a statement. "As a company that serves billions of customers with thousands of employees throughout the world, it’s uplifting to see Facebook recognize the need in their own backyard."
Facebook said the $1 billion investment will be broken down as follows:
- $250 million for the partnership with the State of California for mixed-income housing on excess state-owned land
- $150 million for production of affordable housing in the Bay Area through the Bay’s Future Fund, the affordable housing investment fund of the Partnership for the Bay’s Future
- $225 million in land in Menlo Park for affordable housing
- $25 million to build teacher and essential worker housing on public land for school districts in San Mateo and Santa Clara counties
- $350 million in reserve funds for additional commitments across the country