Google announced it will invest $50 million in Housing Trust Silicon Valley’s TECH Fund, which supports affordable housing developers’ financing needs in the Bay Area. The investment is part of the tech giant’s previously announced $1 billion investment in affordable housing in the Bay Area.
The investment from Google marks the largest investment in the fund to date. Housing Trust Silicon Valley TECH Fund first launched in March of 2017 to offer affordable housing developers flexible financing that is often needed to compete for development sites in the open real estate market. Google’s $1 billion commitment plan to invest in affordable housing included a $250 million investment fund that will offer incentives to developers to build at least 5,000 affordable housing units across the Bay Area. Google’s investment with Housing Trust’s TECH Fund is the first investment from that fund.
Since it was launched, the TECH Fund has helped bring 2,255 affordable homes online across 20 developments in the Silicon Valley area. More than half of the homes the TECH Fund has helped develop are specifically designated for families, while a third are for the homeless and/or permanent supportive housing and a fifth are for senior residents. The homes are designed for those making 60 percent of the area median income or less.
Announced last month, Google’s massive $1 billion plan to create more affordable housing in the Bay Area starts with the company rezoning at least $750 million of its land in the Bay Area over the next 10 years from commercial and office use to residential housing. The land will be used as the site for at least 15,000 new homes across the income spectrum, including middle and low-income families. Google also announced plans to give $50 million in grants through its nonprofit arm, Google.org, to nonprofit organizations that focus on homelessness and displacement.