Facebook and others raise $ 500 million for the Bay Area housing crisis

They are launching a new investment fund, called the Partnership for Bay's Future, which they say will help meet housing problems and try to reduce some of the transport challenges presented by Bay's unique geography.

In San Francisco alone, about 7,000 people are homeless. There is a lack of affordable housing across the Bay Area, which runs out middle and low income workers as teachers and restaurant employees. Critics say the influx of tech companies and their well-paid workers has contributed to the ongoing housing crisis.

The problem has received national attention and was a topic of great debate during the last election.

In November, voters passed the largest corporate increase in San Francisco's history, a problem that put Salesforce CEO Marc Benioff against Twitter and Square CEO Jack Dorsey. Benioff accused Dorsey and other technology leaders who opposed the choice not to give enough back to the city where the companies are headquartered.
Gavin Newsom, California Governor, has also pointed out that technology companies should do more to combat the housing crisis.

The Partnership for Bay's Future has already raised $ 260 million and is looking for more partners.

Zuckerberg's own philanthropic organization, the Chan Zuckerberg Initiative, which he runs with his wife Priscilla Chan, is involved in the project. So far, the Chan Zuckerberg initiative, LISC and Capital Impact partners have contributed $ 50 million to the funds. Other groups investing in the project include Facebook, Genentech, the San Francisco Foundation and the Ford Foundation.
  Microsoft invests $ 500 million to tackle Seattle housing crisis

The group will have two means. One will focus on preserving existing affordable housing units and building new ones. The group uses the second fund to support policy measures that protect and expand affordable housing alternatives.

The $ 500 million investment comes as several private tech companies become involved in regional housing problems. Last week, Microsoft made a pledge to invest $ 500 million to make home in Seattle, where it is based, more affordable.

Adhi Nagraj, San Francisco's director of urban planning organization SPUR, agreed that the contribution is a positive step towards developing more homes. But he told CNN Business that these legitimate efforts should not take money from local, state, and federal governments.

"We need them to invest and not just rely on philanthropy for private donors," he said. 19659003] Todd David, Managing Director of the San Francisco Housing Action Coalition, told CNN Business that money will help alleviate one of the biggest obstacles to building affordable housing in the Bay Area: funding.

David said that two-thirds of the city is devoted to one-unit to three-unit homes, meaning that affordable alternatives are concentrated in a handful of areas. When some areas become so crowded with low-income housing, residents of more affluent areas are less willing to accept lower-income housing income in their own neighborhoods.

"For wealthy people to ascend and finance affordable housing, one of the significant obstacles to getting it built is removing," he said.

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