The San Francisco Chronicle reports that the $1 billion Google pledged to build 20,000 homes may not be enough to move the California housing crisis needle. Cynthia Parker, CEO of Bridge Housing, a major nonprofit developer in San Francisco, points out that one new apartment in the Bay Area costs about $700,000 to build, including land and fees. Building 20,000 units could top $14 billion, which would be a squeeze, even for Google.
That said, the tech company’s balance sheet, combined with government subsidies and other financial sources, could lead to an unprecedented amount of new housing, according to experts. But Google faces a costly and byzantine process. Approval for new homes and offices in Mountain View, San Jose and Sunnyvale will take years, according to city officials.
Google’s plan includes $250 million to finance at least 5,000 units of affordable housing in the Bay Area. It did not specify sites, though Google told The Chronicle the homes would not necessarily be situated on land it already owns. Its commitment also involves getting land it owns worth $750 million rezoned for housing.
Google doesn’t plan to build the housing itself, and the homes would be available for non-employees. The company said it’s already fielding interest from developers and is seeking new models around construction and financing to reduce costs.
Read More
