Amazon commits $1.4 billion for affordable housing in three cities

Amazon Announces $1.4 Billion Investment in Affordable Housing

Amazon has announced its commitment to housing by investing an additional $1.4 billion to create and preserve affordable homes in and around Seattle, as well as near its two other corporate hubs. This investment is an expansion of Amazon’s Housing Equity Fund, a $2 billion initiative launched in 2021, with the goal of supporting 20,000 affordable housing units in the next five years. The fund focuses on the three cities where Amazon has a large concentration of corporate employees: the Puget Sound region, Arlington, VA, and Nashville, TN.

Exceeding Goals

Amazon has already surpassed its initial goal for the Housing Equity Fund. In just three and a half years since its launch, the company has invested $2.2 billion in loans and grants towards 21,000 affordable housing units. With the additional $1.4 billion investment, Amazon expects to fund another 14,000 homes.

Addressing Housing Challenges

Amazon recognizes the housing challenges faced by many individuals, especially in expensive metro areas. CEO Andy Jassy stated that the company aims to give back to communities by helping preserve and create thousands of affordable homes. Alice Shobe, the global director for Amazon Community Impact, emphasized the importance of building on success and remaining flexible to respond to community needs.

Funding Allocation

The $1.4 billion investment will be a mix of loans and grants. The funding primarily targets projects that will be affordable for individuals earning 30% to 80% of the area median income. For example, in King County, this would be $28,800 to $70,650 for an individual or $41,100 to $100,900 for a family of four. Amazon’s first round of funding also supported projects for tenants below 30% area median income and a homeownership pilot.

Partnerships and Impact

Amazon is partnering with the National Housing Trust to provide $40 million in support of homeownership. A pilot project in Seattle will include 83 homes, with plans to expand it to serve 800 homeowners. Of the 21,000 affordable housing units funded by Amazon, over 8,600 are in the Puget Sound region, including 3,600 in Seattle and 1,400 in Bellevue. Another 9,400 units are near Washington, D.C., with an additional 3,000 in Nashville.

Community Collaboration

Amazon’s Housing Equity Fund is just one of many backers for each affordable housing project. Most projects receive funding from multiple sources, including federal, state, or local government. Seattle Mayor Bruce Harrell praised the partnership between Seattle city government and Amazon, highlighting the importance of collaboration to address housing needs.

Preserving Existing Housing Stock

Amazon initially focused on preserving existing housing stock, with more than half of the units funded coming from projects aimed at preserving naturally occurring affordable housing. The company worked closely with developers to find creative solutions and fill gaps in funding. Additionally, 94% of the units created are within walking distance of public transit options.

Long-Term Affordability

Amazon ensures that approximately 95% of the developments supported by the Housing Equity Fund will remain affordable for 99 years. The company estimates that around 46,000 people currently live in the 21,000 affordable housing units it has funded.

Overall, Amazon’s commitment to affordable housing aligns with the Sustainable Development Goals (SDGs), particularly Goal 11: Sustainable Cities and Communities. By investing in affordable housing, Amazon is contributing to the development of inclusive, safe, and sustainable communities.

SDGs, Targets, and Indicators

1. Sustainable Development Goal: Affordable and Clean Energy (SDG 7)

• Target 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
• Indicator: The article mentions that the funding from Amazon’s Housing Equity Fund will be used to create and preserve affordable homes, which indirectly contributes to ensuring universal access to affordable housing.

2. Sustainable Development Goal: Decent Work and Economic Growth (SDG 8)

• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
• Indicator: The article highlights that Amazon’s investment in affordable housing aims to support communities and provide affordable homes for people like teachers, nurses, and first responders, which can contribute to economic growth and job stability.

3. Sustainable Development Goal: Sustainable Cities and Communities (SDG 11)

• Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
• Indicator: Amazon’s commitment to creating and preserving affordable homes directly aligns with the target of ensuring access to safe and affordable housing for all.

4. Sustainable Development Goal: Partnerships for the Goals (SDG 17)

• Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
• Indicator: The article mentions that Amazon’s Housing Equity Fund collaborates with various partners, including the National Housing Trust, to support affordable housing projects. This demonstrates the promotion of effective partnerships to achieve the goal of affordable housing.

Table: SDGs, Targets, and Indicators

Source: seattletimes.com