Airbnb pledges $25 million to boost housing

Airbnb announced Tuesday that it will invest $25 million to support affordable housing in the Bay Area and Los Angeles County.

The new program will help low to moderateincome families buy or rent affordable housing, the global operator of shortterm rentals said. The San Francisco company’s initiative will also help small businesses that support communities and create jobs.

Airbnb CEO Brian Chesky announced the plan at the 2019 Philanthropy Innovation Summit at Stanford University during a panel discussion with Gov. Gavin Newsom and Laura ArrillagaAndreessen, a philanthropist and lecturer at Stanford University. ArrillagaAndreesen is married to Marc Andreessen, whose firm Andreessen Horowitz funded Airbnb and holds a seat on its board of directors.

“I want Airbnb to be a 21st century company that serves all our stakeholders, including the communities our hosts and guests call home,” Chesky said in a statement that credited Newsom for inspiring the company to support affordable housing. Chesky called it a “modest first step.”

Newsom applauded Airbnb’s commitment and said the state’s housing crisis requires an “all hands on deck” effort.

“Government, businesses, and philanthropy must work in partnership to tackle the number one costofliving challenge for families up and down our state,” Newsom said in a statement. “I applaud Airbnb’s $25 million investment in affordable housing for the Bay Area and Los Angeles. It is a critical first step on behalf of their community, and we need more businesses to follow their lead.”

Airbnb, which places travelers in homes operated by independent hosts, making money by taking a cut of the rentals, has faced criticism for potentially driving up rents and taking housing units off the market. In its hometown of San Francisco, Airbnb agreed to register hosts and limit rentals in compliance with local rules. It faces a variety of restrictions on its rentals around the world. South Lake Tahoe residents voted to ban most shortterm rentals last year. Airbnb has also been caught up in the general backlash against richly valued tech companies.

The announcement comes nearly three months after Google committed to a $1 billion plan that would help build 20,000 homes in the Bay Area over the next decade. Earlier this year, a partnership of Bay Area businesses and foundations announced a plan to raise $540 million to help build and preserve affordable and workforce housing. The money will be used to build 8,000 Bay Area housing units over the next five to 10 years as well as invest in policy and planning that will protect an additional 175,000 vulnerable households.

The $25 million investment from Airbnb will be split between Los Angeles County and the Bay Area. The program will also “finance meaningful infrastructure initiatives in designated areas,” Airbnb said. The program could be expanded if it’s successful.

“Investing in affordable housing and small businesses is the right thing to do for our state and it is the right thing to do for our business,” Chesky said.