Microsoft has pledged nearly $500m to provide loans to boost affordable housing in its hometown of Seattle, in what would mark one of the biggest moves by a technology company to deal with a sharp rise in home prices that some have blamed on the sector.
Brad Smith, the company’s president, told The Seattle Times on Wednesday that the sum would be used to provide below-market interest rate loans to help low- and middle-income workers find housing. The company did not provide a number for how much affordable housing would result from the pledge.
Seattle, which is also home to Amazon, was ranked as “severely unaffordable” by Demographia, the public policy group, in its 2018 housing affordability survey and is classed as less affordable than New York City. The expansion of technology companies in the city has helped push up house prices and caused friction with local residents, a trend that has also hit San Francisco.
Half of the total $500m will be used for below-market rate loans to build housing for people who earn up to 60 per cent of the median income of $48,150, according to the Seattle Times. Another $225m will be loaned below market rates to build “workforce housing” and developments for families earning between $62,000 and $124,000 in the Eastside area of the city.
The remaining $25m will be donated to community projects directed at homelessness and support for low-income residents.
Microsoft held over $130bn in cash and short-term investments as of June 2018.
