Hot off Microsoft’s announcement that it would be creating what is essentially a $500 million affordable housing bank for the Seattle area, the founder of Facebook has unveiled a similar fund for California’s Bay Area.
Through a group of businesses, nonprofits, and philanthropists, the Partnership for the Bay’s Future, which was established through the Chan Zuckerberg Initiative, will invest $500 million to preserve and build affordable housing. That pledge from the Mark Zuckerberg and Priscilla Chan–led charity extends to San Francisco, San Mateo, Santa Clara, Alameda, and Contra Costa counties.
The move, which the fund estimates will add 8,000 new units of affordable housing while preserving an existing 175,000 units over the next five-to-ten years, comes at a dire time. As Fast Company points out, only 58,000 new units were built in the Bay Area from 2012 through 2016 even though the region added 373,000 new jobs. From that perspective, it looks like the fund won’t make much of an impact, but the backing groups are hoping that they can lay the groundwork for long-term tenant protections, rent reform, and future investments.
The Chan Zuckerberg Initiative revealed the Partnership for the Bay’s Future, which has already raised $260 million of its $500 million target, in a January 24 announcement. The nonprofit San Francisco Foundation joins the Chan Zuckerberg Initiative, Ford Foundation, Local Initiatives Support Corporation (LISC), Facebook, Genentech, Kaiser Permanente, the William and Flora Hewlett Foundation, the David and Lucile Packard Foundation, and the Silicon Valley Community Foundation.
The partnership will focus primarily on its two Investment and Policy Funds. The $500 million Investment Fund, to be managed by LISC (which the release calls the “the largest nonprofit community development financial institution in the country”), will invest in projects agreed upon by other members of the partnership. Their first project? Offering a revolving line of credit, which can be repaid and borrowed against, to the East Bay Asian Local Development Corporation for neighborhood development in the East Bay. The organization expects that with the investment fund’s backing, it can support the completion of six projects over the next five years.
The Policy Fund, which has raised $20 million of its $40 million goal, will be used to push for legislation that preserves housing, makes building new affordable housing easier, and strengthens low-income tenant protections. The fund will be administered by the San Francisco Foundation and will offer Challenge Grants for broader projects, and smaller, technically-minded Breakthrough Grants.