Google made a big announcement yesterday. The tech giant will invest $1 billion to help get rid of the housing crisis in the Bay Area where housing prices have skyrocketed. The Bay has a shortage of affordable housing thanks to the tremendous growth of tech companies like Google and Facebook. 

At least $750 million of Google’s land that is currently zoned for office or commercial space will be repurposed into residential housing. Through this, Google will be able to develop at least 15,000 new homes. According to Google the company will then establish a $250 million investment fund to provide incentives to developers which will in turn make them build at least 5,000 affordable housing units across the Bay. Another $50 million will be given in grants to nonprofits that are focused on homelessness and displacement issues. 

Google plans on getting homes constructed immediately and they’ve also worked with the city to change zoning so land can be freed up for housing in the North Bayshore area. Talks for Sunnyvale and San Jose are currently in the works. Google acknowledges they are not in this alone. Collaborative efforts are imperative across business, government and community organizations to make the positive change happen.  

Over the last 5 years, Google has given $18 million in grants to help address homelessness. Out of that amount, $1.5 million went to affordable housing for low income veterans and households in Mountain View.