Last year, LinkedIn invested $10 million into an affordable housing initiative started by Housing Trust Silicon Valley, a nonprofit community loan fund based that works to increase affordable housing options in Silicon Valley.
The investment went towards the TECH Fund, a program started by Housing Trust Silicon Valley that aims to get more high-tech organizations, large employers and philanthropists involved with creating affordable housing in the Bay Area.
Now, LinkedIn is investing $5 million more into the TECH fund, and is being joined by fellow tech companies Cisco and Pure Storage, which are also investing in the TECH Fund.
According to Housing Trust Silicon Valley, the companies are investing a total of $20 million into the TECH Fund. In addition to LinkedIn’s new $5 million investment, Cisco is investing $10 million, while Pure Storage is investing $5 million.
The TECH Fund was launched in March 2017 with an initial investment from Cisco, and has now raised $52 million total.
The money in the TECH Fund will be revolved over the course of a 10-year investment period. At the end of that time, TECH Fund investors receive a “modest return on their investments in addition to the original investment being repaid,” according to Housing Trust Silicon Valley.
The fund’s goal is to create 10,000 affordable housing opportunities in its first 10 years. So far, the fund has started construction on approximately 1,500 homes across 15 developments across Silicon Valley. Most of those homes are aimed at those earning up to 60% of the area median income or less.
According to Housing Trust Silicon Valley, the funds have been used to purchase land next to transit in downtown San Jose, close to jobs in Mountain View, preserve and rehab existing properties occupied by low-income residents in Redwood City, and other endeavors.
“We’re thankful to Pure Storage for joining forces with LinkedIn and Cisco to make a greater impact,” said Julie Mahowald, Acting CEO of Housing Trust Silicon Valley. “TECH Fund has now passed $50 million, laid the groundwork for 1,500 affordable homes, and momentum is building in our efforts. Imagine how much further we can go if more organizations step in.”
And with $20 million more in its coffers, the TECH Fund will now help build more affordable housing in an area that’s sorely in need of it.
“The work being done by Housing Trust Silicon Valley to help the Bay Area address economic inequality and homelessness matters deeply,” LinkedIn CEO Jeff Weiner said. “We’re continuing to invest in the TECH Fund to not only make a difference in affordable housing, but to do so in a way that delivers results quickly for the people who need it.”
Chuck Robbins, chairman and CEO of Cisco, said that partnering with other organizations allows the companies to have a larger impact.
“We are excited to join the leaders from Pure Storage and LinkedIn to increase the capacity of the TECH Fund, because we recognize the scale of the local housing crisis and the impact this solution can have in increasing the availability of affordable housing,” Robbins added.