Priscilla Chan is the co-founder and co-CEO of the Chan Zuckerberg Initiative. Image Credit: Jessica Chou/Chan Zuckerberg Initiative(CZI)
CZI reported in May 2024 that California’s housing shortage cannot be addressed through one measure alone and described the need for collaboration between activists, organisers, non-profits, philanthropies, private companies and community members. Its ‘Family of Loan Funds’ supports the production and preservation of affordable homes across 5 Bay Area counties. Because the problem has developed over decades, it also stressed that housing solutions can take time to produce results.
The housing finance side of PBF was designed to help close funding gaps that can prevent affordable housing projects from moving forward.
The Partnership for the Bay’s Future(PBF) began in 2019 with a focus on making housing more affordable while supporting racial equity and economic inclusion. Its first 5 years resulted in more than 73,000 tenants being protected and more than 4,400 homes being financed for 11,000 people, according to the CZI’s April 2024 report on the partnership. More than 20,000 community members were engaged through policies connected to this work. The results came through 2 main parts of the partnership. The CZI reported that 36 policies had been proposed through the effort by April 2024, with 13 having passed. By 2024, the loan funds had raised nearly $600 million and facilitated more than $404 million in investments. Those investments financed more than 4,400 homes. 90% of the units were intended for households earning 80% of the area median income or less, while half were for households at or below 50% of that level, according to CZI. CZI was an early investor, providing $50 million in initial capital. The April 2024 announcement described PBF as one of the largest private-sector housing funds focused on the Bay Area’s affordability crisis. At the 5-year mark, the partnership had not only financed thousands of homes but also supported policies affecting tenants across the region. The PBF reached its fifth anniversary in 2024.
Existing lower-cost rental properties can be lost when rents rise or buildings change ownership, leaving residents at risk of displacement.
Community groups had helped bring the experiences of renters, low-income residents and people of colour into discussions with local, regional and state governments, according to the same report. The organisation saw a need for flexible approaches that could add to existing affordable housing support rather than replace it, according to the CZI report. First is policy work and second is housing finance. Instead of relying on a single programme, PBF created different ways to support people who were already living in the region while also helping produce and preserve affordable homes. One part of PBF is its Policy Fund, which provides resources and technical assistance to local and regional governments. The aim is to help officials develop and put into practice policies that can allow more people to remain in their communities. Examples included Berkeley’s Preference Policy and Antioch’s Cottage Communities on Faith-Owned Land. The organisation described that money as low-cost and risk-tolerant funding, which helped bring other funders into the housing effort. The loan funds are managed by the ‘Local Initiatives Support Corporation Bay Area’ and are intended to bridge financing gaps in the region’s rental housing market. CZI also reports about several ways through which California can address affordability. One involves newer construction methods such as modular and panelised building, which can potentially reduce costs and shorten construction times. Another involves alternative forms of ownership, including community land trusts, housing co-operatives and resident-owned communities. The organisation also highlights the importance of protecting homes that are already affordable. In Los Angeles, for example, CZI highlighted the Local Rental Owners Collaborative, which works with smaller landlords to help preserve housing and keep residents in their homes. Building more homes can increase supply, while preserving existing properties and protecting tenants can address immediate pressures on people already living in expensive areas. Priscilla Chan has also described philanthropy as a relatively small part of a housing problem of this scale. Its experience has since been presented as a model that other regions could consider adapting to their own housing challenges.
5 years after its launch, the initiative had protected more than 73,000 tenants and financed over 4,400 homes for thousands of people. Priscilla Chan with community leaders and CZI staff member Ruby Bolaria-Shifrin celebrating 5 years of the Partnership for the Bay’s Future at the Commonwealth Club in San Francisco in March , 2024. Priscilla Chan has supported thousands of Bay Area residents through the ‘Partnership for the Bay’s Future,’ a programme created to tackle the region’s shortage of affordable homes. The work, supported by the Chan Zuckerberg Initiative(CZI) , combines funding with policy support and partnerships involving governments, non-profits, developers and community groups. Its progress shows how philanthropic money can be used alongside other resources to address housing problems. Image Credit: Chan Zuckerberg Initiative(CZI) You use AI every day. Now get your AI Quotient. Take the AIQ test.