A billion dollars sounds like a lot, but Facebook’s pledge to improve affordable housing options in California sounds shallow considering that figure is less than 1% of the social media giant’s revenue during the past three years.
Forbes contributor and CultureBanx CEO Kori Hale writes that Facebook’s commitment is not a deep financial undertaking.
Facebook is committing $150 million of the $1 billion pledge for the development and construction of affordable housing, including housing for the homeless, something that is desperately needed. In 2017, the San Francisco Homeless Count Survey found the differences between the city’s population and those experiencing homelessness were vastly distinct, with African Americans making up 34% of the homeless, compared to just 6% of the general population. Overall, the Facebook commitment, which is a mix of grants, loans, and land, is intended to help teachers, nurses, and first responders live closer to where they work.
Hale argues that Facebook’s move is better late than never, but the company is mirroring what tech giants have done in their hometown. Microsoft and Amazon also committed funding to Seattle’s affordable housing projects but those amounts are just a “drop in the bucket” compared with, for example, Microsoft’s annual net income.
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