According to Foxnews, Facebook
Inc. is extending a sizable olive branch to neighbors rankled by its plans to
expand its campus and bring 6,500 new employees to the area, a move some locals
fear will exacerbate a growing housing shortage.
The tech giant announced Friday it will spend
about $20 million in Menlo Park and East Palo Alto, Calif., two cities that
surround its campus, to create a fund to build new housing, support
job-training programs and provide legal assistance to tenants in danger of
eviction.
Some $18.5 million will go to a fund to build
new housing, primarily targeted at low- and moderate-income families, with
consultation from community groups.
Government officials and community groups in
San Francisco and Silicon Valley have tried to engage tech behemoths in their
backyards for help in solving the housing crunch. Costs have skyrocketed due to
tight zoning restrictions that make it difficult to build and an influx of
highly paid workers who are pushing out long-term residents with their ability
and willingness to pay more to rent or buy.
Facebook’s decision to begin funneling tens
of millions of dollars to create housing in local communities underscores the
growing pressure on these companies to help tackle housing affordability, an
issue that also is beginning to make it difficult to recruit employees.
Companies such as Google parent Alphabet Inc. and Apple Inc. are facing similar
pressures.
While about 500,000 new jobs have been
created since 2010, Silicon Valley built just 26% of the new homes it needed
for lower-income households between 2007 and 2014, a shortfall of nearly 22,000
homes, according to local government statistics.
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