SAN JOSE, CA - LinkedIn, the world's largest professional network based in Silicon Valley, has invested $10 million in TECH Fund, an initiative of Housing Trust Silicon Valley to get more high-tech organizations, large employers and philanthropists involved with creating affordable housing in the Bay Area.
With this Mountain View-based investment LinkedIn is the first company to use their investment in the TECH Fund to make additional voluntary contributions to benefit their community. TECH Fund, which was created to help developers with short-term capital needs to compete more effectively with market-rate developers and purchase property faster, is a critical new tool to fill a need in the affordable housing development process. Housing Trust, which created TECH Fund, also noted LinkedIn's contribution to TECH Fund brings the total investment level to $30 million.
"We see TECH Fund and LinkedIn's investment as new way to lead change in the affordable housing landscape," said Kevin Zwick, CEO of Housing Trust. "We're happy to create a way for affordable housing developers to access land acquisitions funds quickly, and we thank LinkedIn for being a committed ally to do so."
"It's great to see a local company with such global influence step up and make a clear commitment to addressing the affordable housing crisis in our region," said Mountain View Mayor Ken Rosenberg. "I hope that LinkedIn's investment in the Housing Trust TECH Fund will be the example for other tech companies to follow in that it provides a real, tangible starting point for developers to make the choice to build housing that is accessible to everyone."
TECH Fund investments are already being deployed. For example, part of LinkedIn's investment is already being utilized by Palo Alto Housing to purchase a site at 950 W. El Camino in Mountain View intent to build 70 new affordable apartments, with 20 homes dedicated to permanent supportive housing. Housing Trust was able to close the loan within a month and lock down the site.
"We must all take ownership of the affordable housing crisis in the Bay Area, and invest in compassionate solutions," said Katie Ferrick, head of community affairs at LinkedIn. "This partnership with Housing Trust through the TECH Fund is a creative way to make community impact investing a viable way for companies to address the need for housing."