The San Francisco Bay Area will soon have affordable accommodation, thanks to Facebook Inc (NASDAQ:FB) housing initiative. In collaboration with a coalition of local community groups, the tech giant will be donating close to $20 million in Menlo Park and East Palo Alto, Calif, the two cities that are set to receive housing expansion. The fund is primarily targeting the low- and moderate-income families in an effort to combat the housing crisis, which is so prevalent.
Facebook’s contribution comes at a time when affordable housing has become such a huge problem. The company’s CEO acknowledges that something must be done and this is by embracing workable and deliverable ideas. Besides, San Francisco currently ranks first in California for economic disproportion.
Facebook Housing: The Company will also expand its HQ in the locality
The tight zoning restrictions in San Francisco and Silicon Valley have occasioned the skyrocketing of costs such that even those that are willing to buy houses or pay more rent are reluctant. It is for this reason that Facebook housing is being embraced by many because apart from providing affordable housing, the initiative will also create new jobs to the residents. Facebook will also carry out a significant expansion of its HQ, which will make room for an additional 6,500 employees.
But apparently, there are those who are taking Facebook’s construction plans with a pinch of salt. An alliance of local community members claims that the invasion of well off Facebook employees into the region will drive up house rental costs, which will result in income inequality.
Affordable housing is a problem beyond the Bay Area says, Mark Zuckerberg
Every sector experiences challenges, and so is the area of housing. Menlo Park Mayor, Rich Cline says, “Menlo Park faces the same challenges as many of our neighboring communities in how to secure and grow our diverse residential neighborhoods with housing prices soaring, managing the onslaught of traffic impacts and how to deliver the best education we can to our children. I think such challenges become opportunities if we find ways to unite our cities and community organizations and bring in bold policies.”
However, the executive director of Youth United for Community Action, Tameeka Bennett says that they are convinced of Facebook’s sincere commitment to easing the housing problem. Facebook housing is not the only project that the tech giant is targeting. Over the years the market can expect much more.