Facebook commits $1 billion to affordable housing in Bay Area, US

MENLO PARK, Calif. (KGO) -- Facebook has announced it's committing $1 billion over the next decade to address the affordable housing crisis in the Bay Area and the rest of the country.

The Menlo Park-based social media giant said the investment will go toward building and funding affordable housing.

That includes creating up to 20,000 new housing units "to help teachers, nurses and first responders live closer to the communities that rely on them," said Facebook Chief Financial Officer David Wehner.

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The company has partnered with Gov. Gavin Newsom and the State of California to accelerate progress on the issue.

"State government cannot solve housing affordability alone, we need others to join Facebook in stepping up," Newsom said. "Progress requires partnership with the private sector and philanthropy to change the status quo and address the cost crisis our state is facing."

A breakdown of Facebook's 10-year investment is 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 Menlo Park land 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.

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"Facebook's partnership has been critical in helping our county create housing on land we own for teachers, staff, and other workers who are the fabric of our community," said County of Santa Clara Supervisor Joe Simitian.

"The partnership we've established with Facebook, Santa Clara County, the City of Palo Alto and local school districts demonstrates how innovative governments and responsible companies can make progress solving our pressing social problems of housing affordability and income inequality."