SAN FRANCISCO — Google is pledging $1 billion to help fight the housing crisis in the San Francisco Bay Area.

The company announced Tuesday it will repurpose at least $750 million of the land it already owns in the Bay Area for residential housing. In a blog post, Google CEO Sundar Pichai said the land — most of which is currently zoned for commercial or industrial use — will be used to create at least 15,000 new homes at different income levels, including for middle and low-income residents.

Google will also create a $250 million investment fund to incentivize developers to build at least 5,000 affordable housing units in the area.

A shortage of affordable housing across the Bay Area is pushing out middle and low-income workers like teachers and restaurant employees. Critics say the influx of tech companies such as Google and Facebook, and their well-paid workers, have contributed to the ongoing housing crisis. In San Francisco alone, more 7,000 people are homeless, according the the city’s most recent survey.

“We hope this plays a role in addressing the chronic shortage of affordable housing options for long-time middle and low income residents,” said Pichai wrote in a blog post.

Google.org, the company’s philanthropic division, will give an additional $50 million in grants to nonprofits focused on homelessness and displacement.

Pichai said the company’s goal was to start construction immediately and make homes available within the next few years. Google is working with the city government in Mountain View and talking to Sunnyvale and San Jose’s government about quickly rezoning the land — all cities within Silicon Valley.

“Across all of this, our goal is to help communities succeed over the long term, and make sure that everyone has access to opportunity, whether or not they work in tech,” said Pichai.

The housing issue has received national attention and was a topic of major debate during the last California state election. In November, voters passed the largest corporate tax increase in San Francisco’s history — an issue that pitted Salesforce CEO Marc Benioff against Twitter and Square CEO Jack Dorsey. Benioff accused Dorsey and other tech leaders who opposed the ballot measure of not giving enough back to the city where their companies are headquartered.

California Governor Gavin Newsom has also called on tech companies to do more to fight the housing crisis.

Google, one of the biggest employers in the Bay Area, has given $18 million in grants to address homelessness over the past five years, the company said. The investment comes as more private tech companies are getting involved in regional housing issues.

In January, Microsoft pledged to invest $500 million to make homes in Seattle, where it’s based, more affordable. That same month, Facebook CEO Mark Zuckerberg announced Facebook and the Chan Zuckerberg Initiative were partnering with local companies and organizations to raise over $500 million to help fight the housing crisis. </s> • Google announced a $1 billion investment to ease the housing crisis in the San Francisco Bay Area, pledging to add about 20,000 homes to the region over the next decade.
• Google plans to convert at least $750 million of its own land into real estate to support 15,000 residential housing units.
• About 7,000 people are homeless in San Francisco, while Silicon Valley companies have drawn fire for exacerbating a shortage of affordable housing in the region.

Criticized for pushing out poorer residents, Google on Tuesday announced a $1 billion investment to ease the housing crisis in the San Francisco Bay Area and to add about 20,000 homes to the region over the next decade.

As part of that effort, the internet company plans to convert at least $750 million of its own land, currently zoned for office or commercial space, to support 15,000 homes, according to a blog post from Google CEO Sundar Pichai. The technology giant will also establish a $250 million investment fund to incentivize developers to build an additional 5,000 affordable housing units.

"We hope this plays a role in addressing the chronic shortage of affordable housing options for long-time middle and low-income residents," Pichai wrote.

Google joins other technology companies that have pledged to help create more affordable housing around Silicon Valley, where home prices have skyrocketed as the tech sector has grown. Facebook CEO Mark Zuckerberg and other local companies in January said they will raise $500 million to help fight the Bay Area housing crisis.

Google can easily afford the $1 billion it is earmarking for local housing — as of March 31 it was sitting on a pile of cash and securities worth $113 billion. The initiative could also soothe frustration with the company over what some see as a widening divide in Silicon Valley between highly paid tech employees and everyone else.

Experts have long criticized Silicon Valley tech companies for driving up real estate prices, contributing to an affordable housing crisis that is pushing middle- and low-income out of the Bay Area. Median home prices in San Francisco have surged 45%, from $936,000 to nearly $1.4 million, just in the past five years, according to Zillow. Meanwhile, about 7,000 people in San Francisco are homeless.

"For several months, we have encouraged Google to make a bold commitment to address our region's affordable housing challenge," San Jose Mayor Sam Liccardo said in a statement.

"We look forward to working with Google to ensure today's announcement manifests into housing that will benefit thousands of San Jose residents struggling under the burden of high rents," he added.

Pichai said the company will start construction immediately to make homes available in the next few years. The company is already looking to free up land for housing in Mountain View, Calif., where Google-parent Alphabet is based, and it's in "productive conversations" with cities Sunnyvale and San Jose to do the same. </s> Google on Tuesday pledged to commit more than $1 billion to help address the severe housing crisis in the region that includes its headquarters and Silicon Valley.

Chief executive Sundar Pichai announced the initiative, saying the internet colossus wants to be “a good neighbor” in the area bursting with technology companies.

The move comes with Silicon Valley firms under pressure over the spike in real estate prices, lack of affordable housing and growing homeless problem in the San Francisco Bay region.

The region has attracted thousands of highly paid tech workers that has strained the housing supply and led to an explosion in prices.

Pichai said Google had previously invested in housing in areas where it has operations.

“Today we’re announcing an additional $1 billion investment in housing across the Bay Area,” Pichai said in a blog post.

The largest chunk of this would be to “repurpose” over the next 10 years for housing some $750 million of Google’s land, most of which is currently zoned for office or commercial space.

“This will enable 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,” he said.

“We hope this plays a role in addressing the chronic shortage of affordable housing options for long-time middle and low income residents.”

Google, the largest unit of the Alphabet holding company, also pledged a $250 million investment fund providing incentives to build at least 5,000 affordable housing units across the market.

An additional $50 million will be funneled through the company’s philanthropic arm Google.org to nonprofits focused on homelessness and displacement, adding to some $18 million in grants given over the past five years.

“In the coming months, we’ll continue to work with local municipalities to support plans that allow residential developers to build quickly and economically,” Pichai said.

“Our goal is to get housing construction started immediately, and for homes to be available in the next few years.”

Earlier this year, companies and organizations, including one started by Facebook’s Mark Zuckerberg and his wife, pledged some $500 million for affordable housing in the same region in response to a plea from Governor Gavin Newsom.

Microsoft, based in the northwestern city of Seattle, has pledged $500 million for a similar initiative. </s> Google has a $1 billion plan to put a dent in the Bay Area housing crisis.

The company announced a sweeping new plan Tuesday to contribute $1 billion to build as many as 20,000 new homes in the San Francisco Bay Area over the next 10 years.

The bulk of that investment will come not from Google parent Alphabet's multibillion-dollar cash reserves, but from a promise to rezone its own land in order to build residential housing.

"Over the next 10 years, we’ll repurpose at least $750 million of Google’s land, most of which is currently zoned for office or commercial space, as residential housing," Google CEO Sundar Pichai write in a blog post. "This will enable 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."

Additionally, Pichai says Google will put up $250 million in incentives to get developers to build 5,000 units of affordable housing throughout the Bay Area. The company will donate an additional $50 million to local organizations that fight homelessness.

Google isn't the first tech company to throw money at the housing crisis in the Bay Area, where the cost of living is so high six-figure salaries are considered "low income." Mark Zuckerberg's nonprofit Chan Zuckerberg Initiative is leading an initiative to raise $500 million to build 8,000 Bay Area homes in the next decade.

But, as the San Jose Mercury News notes, Google's ambitious plan is the "largest single commitment from a tech company to fight the housing shortage that threatens to stall the economic engine of Silicon Valley."

That said, the success will of Google's new investment will depend on other factors, like cooperation from local governments to approve Google's new zoning plans. And while Pichai notes that the company is already working with the city of Mountain View and having "productive conversations" with San Jose, the company could still encounter roadblocks from other cities or local organizations before its housing dreams are realized. </s> Alphabet Inc's Google announced on Tuesday it would set aside US$750 million in land and US$250 million in financing to spur developers in the San Francisco Bay Area to build at least 20,000 homes and rehabilitate other housing over the next decade.

REUTERS: Alphabet Inc's Google announced on Tuesday it would set aside US$750 million in land and US$250 million in financing to spur developers in the San Francisco Bay Area to build at least 20,000 homes and rehabilitate other housing over the next decade.

Google, which told Reuters it has 45,000 employees in the region, has been the target of local activists who for several years have said the company's growth and high salaries have contributed to rising rents and housing shortages. They have called on Google and other Silicon Valley tech companies to invest in affordable housing and rethink expansions.

Google said housing had reached a "crisis point" in the Bay Area but declined to comment on whether its announcement in a blog post https://www.blog.google/inside-google/company-announcements/1-billion-investment-bay-area-housing on Tuesday was a response to pressure from community activists, who plan to demonstrate Wednesday outside Alphabet's annual shareholder meeting.

Activist group Silicon Valley Rising called Google's announcement "a great step in the right direction."

In January, Facebook Chief Executive Mark Zuckerberg's philanthropy in partnership with other groups said they planned to raise US$500 million to build or preserve more than 8,000 homes in the Bay Area over 10 years. And Microsoft Corp pledged US$500 million towards addressing homelessness and developing affordable housing in the Seattle region.

Google told Reuters it would lease land valued at US$750 million, and largely zoned for offices or shops, to construct mostly apartments and some for-sale homes for a total of at least 15,000 units.

It declined to elaborate on why the space is no longer needed for offices.

The US$250 million would go towards equity and debt investments in projects preserving existing affordable housing or constructing at least 5,000 new affordable units for people of various income levels. Google said it would prioritise developments near transportation hubs by its offices.

Google has already proposed 5,700 new homes at one of its developments in Mountain View, California adding that it is also in discussions with the cities of Sunnyvale and San Jose. </s> FILE PHOTO: The Google logo is pictured at the entrance to the Google offices in London, Britain January 18, 2019. REUTERS/Hannah McKay/File Photo

(Reuters) - Alphabet Inc’s Google announced on Tuesday it would set aside $750 million in land and $250 million in financing to spur developers in the San Francisco Bay Area to build at least 20,000 homes and rehabilitate other housing over the next decade.

Google, which told Reuters it has 45,000 employees in the region, has been the target of local activists who for several years have said the company’s growth and high salaries have contributed to rising rents and housing shortages. They have called on Google and other Silicon Valley tech companies to invest in affordable housing and rethink expansions.

Google said housing had reached a “crisis point” in the Bay Area but declined to comment on whether its announcement in a blog post on Tuesday was a response to pressure from community activists, who plan to demonstrate Wednesday outside Alphabet’s annual shareholder meeting.

Activist group Silicon Valley Rising called Google’s announcement “a great step in the right direction.”

In January, Facebook Chief Executive Mark Zuckerberg’s philanthropy in partnership with other groups said they planned to raise $500 million to build or preserve more than 8,000 homes in the Bay Area over 10 years. And Microsoft Corp pledged $500 million toward addressing homelessness and developing affordable housing in the Seattle region.

Google told Reuters it would lease land valued at $750 million, and largely zoned for offices or shops, to construct mostly apartments and some for-sale homes for a total of at least 15,000 units.

It declined to elaborate on why the space is no longer needed for offices.

The $250 million would go toward equity and debt investments in projects preserving existing affordable housing or constructing at least 5,000 new affordable units for people of various income levels. Google said it would prioritize developments near transportation hubs by its offices.

Google has already proposed 5,700 new homes at one of its developments in Mountain View, California adding that it is also in discussions with the cities of Sunnyvale and San Jose. </s> Google says it wants to ease the housing problem in the San Francisco Bay Area, where the tech giant has been headquartered for the past two decades. The search giant on Tuesday said it's pledging $1 billion to help build a total of 20,000 homes in the region over the next 10 years.

The allocation comes as Google and other tech giants face criticism for contributing to higher rents in the Bay Area. Google, which was founded in Mountain View, California, 20 years ago, has also been aggressively expanding in the area. The company has major real estate developments underway in nearby San Francisco, San Jose and Sunnyvale.

"Across the region, one issue stands out as particularly urgent and complex: housing," Google CEO Sundar Pichai wrote in a blog post. "The lack of new supply, combined with the rising cost of living, has resulted in a severe shortage of affordable housing options for long-time middle- and low-income residents."

Google said it'll repurpose $750 million worth of its land, which is currently zoned for commercial and office space, to build 15,000 residential homes. That will include housing for mid- and lower-income people, the company said. Google will also create a $250 million investment fund that provides incentives to real estate developers for building 5,000 affordable homes in the region. Google said it wants housing construction to begin immediately.

Google is also facing intense scrutiny more broadly as a company, so a pledge to help ease the housing crisis could also be an attempt to help improve public sentiment. In the past few years, Google has been accused of censorship, helping to distribute disinformation and not taking a strong enough stance against sexual harassment in the workplace.

On Tuesday, Gov. Gavin Newsom welcomed Google's vow to help with housing.

"Google recognizes that it has an important role to play in addressing California's cost crisis," Newsom said in a statement. "I hope today's announcement inspires other companies -- big and small -- to make similar direct investments in housing affordability throughout our state."

Everything announced at WWDC: Get the latest on the new Mac Pro, iOS 13, Dark Mode for iPhone and more. What Amazon's one-day shipping means for you: Amazon to decrease standard shipping time for Prime members from two days to one. </s> MOUNTAIN VIEW (dpa-AFX) - Google said that it would commit $1 billion to ease the housing crisis in the San Francisco Bay Area, and add about 20,000 homes to the region over the next decade.



As part of its effort, the company plans to convert at least $750 million of its own land, currently zoned for office or commercial space, to support the development of at least 15,000 new homes, according to a blog post from Google CEO Sundar Pichai.



The technology giant will also establish a $250 million investment fund to incentivize developers to build at least 5,000 affordable housing units across the market.



'We hope this plays a role in addressing the chronic shortage of affordable housing options for long-time middle and low-income residents,' Pichai wrote.



Google will give $50 million in grants through Google.org to nonprofits focused on the issues of homelessness and displacement.



Copyright RTT News/dpa-AFX </s> The main Google campus in Mountain View, California. Google plans to create a US$250 million investment fund to provide incentives for developers to create more affordable homes.

BACK in 1998, Google paid just US$1,700 a month to rent its first office - half a home, including the garage, in Silicon Valley.

After two decades of extraordinary growth by tech companies like Google, real estate prices in the area have skyrocketed, fuelling a shortage of affordable housing and exacerbating inequality.

A small one-bedroom apartment near the company's current headquarters now costs about US$3,500 a month.

Now Google, saying it wants to be a "good neighbour", has plans to provide some relief. On Tuesday, it pledged to invest US$1 billion in land and money to build homes.

The company plans to repurpose at least US$750 million worth of commercially zoned land it owns over the next 10 years, Google's chief executive officer Sundar Pichai, said. Google would work with local governments to allow developers to lease the land to build homes.

In addition, Google plans to create a US$250 million investment fund to provide incentives for developers to create more affordable homes in the area, Mr Pichai said.

Although the details are not final, Google said the fund might provide loans or make investments in projects that were geared towards building affordable housing. The announcement is the latest attempt by tech industry leaders to tackle a problem they helped create but until recently had left largely unaddressed.

Google, Facebook, Apple and a host of startups have concentrated wealth in and around San Francisco and Seattle, attracting workers to those areas from across the world.

But the housing supply has not kept pace. As a result, buying or renting a home in those regions has become prohibitive for people outside the technology industry.

In January, Microsoft announced that it would allocate US$500 million to help provide affordable housing in the Seattle area.

That same month, a group of Bay Area philanthropists, including Mark Zuckerberg, Facebook's chief executive, also pledged to donate US$500 million to protect and expand affordable housing in the area.

Google's US$1 billion is not a donation, since the company will likely still make money off leases to developers or low-interest loans. Mr Pichai referred to them as a "US$1 billion investment". But Google may make far less money from the investments than if executives put the money in its core business.

The shortage of available land in Silicon Valley has made it difficult to increase the supply of housing. Google estimates the fund and the repurposed land could spur the building of at least 20,000 homes in the Bay Area.

"We hope this plays a role in addressing the chronic shortage of affordable housing options for longtime middle- and low-income residents," Mr Pichai wrote in a blog post.

Google made its announcement a day before the annual shareholder meeting for its parent company, Alphabet. In the past, the company has been criticised at those meetings for not doing enough to ease the housing problems in the area.

Google recently proposed plans to add new offices in Mountain View, where it has its headquarters, and in nearby San Jose.

In those development projects, the company has pushed for a mix of office and retail space along with residential properties, a departure from the sprawling office parks that are common throughout Silicon Valley.

Since 2005, California has added 308 housing units for every 1,000 new residents, about half the level of New York, according to the McKinsey Global Institute. That long-term shortage has only been worsened by the growth of tech: During the past eight years, the Bay Area has added about 676,000 jobs and 176,000 housing units.

The result has been punishing rent increases, rising homelessness and campers parked on Silicon Valley side streets. California now has not only some of the highest wages in the country but also the nation's highest poverty rate once the cost of living is figured in.

Just a few hours before Google's announcement, the National Low Income Housing Coalition put out a report that showed Bay Area counties account for five of the six most expensive places to live in the country.

In Santa Clara County, which includes Mountain View, a worker would have to earn US$54.60 an hour to afford a two-bedroom apartment.

Despite its obvious and long-standing housing shortage, the state has struggled to find a political solution. Gavin Newsom, the new governor, campaigned on an audacious promise to push policies that would lead to the construction of 3.5 million new homes by 2025 - California is on pace to build about 1 million - but nothing that has happened in the Legislature suggests that goal will be even close to met. NYTIMES
Google announces that it is setting aside $750 million in land and $250 million in financing to encourage developers in the San Francisco area to build and rehabilitate housing, in order to ease the homeless crisis in a region where Google has 45,000 employees.