Google has a plan of 1 billion dollars to reduce the housing crisis in the Bay Area.
The company announced
An extensive plan on Tuesday to contribute $ 1 billion to build up to 20,000 new homes in the San Francisco Bay Area over the next 10 years.
Most of that investment will not come from the cash reserves of billions of dollars of the Google Alphabet, but from the promise of rezoning their own land to build residential homes.
"In the next 10 years, we will reuse at least 750 million dollars on Google land, most of which are currently in areas for offices or commercial premises, such as residential homes," Google CEO Sundar Pichai wrote in a blog post
"This will allow us to support the development of at least 15,000 new homes at all income levels in the Bay Area, including housing options for middle and low-income families."
That Google will provide 250 million dollars in incentives for developers to build 5,000 units of affordable housing throughout the Bay Area. The company will donate an additional 50 million dollars to local organizations fighting homelessness.
It is not the first technology company to throw money in the housing crisis in the Bay Area, where the cost of living is so high that six-figure wages are considered "low income."
Mark Zuckerberg's non-profit initiative Chan Zuckerberg is leading an initiative to raise $ 500 million to build 8,000 homes in the Bay Area over the next decade.
But, as he points out San Jose Mercury News , Google?s ambitious plan is the "Greater individual commitment of a technology company to combat housing shortages that threatens to stop the economic engine of Silicon Valley."
The success of Google?s new investment
It will depend on other factors, such as the cooperation of local governments to approve the new Google zoning plans.
And while Pichai points out that the company is already working with the city of Mountain View and is having "Productive conversations" With San José, the company could still encounter obstacles from other cities or local organizations before their housing dreams come true.