Gov. Gavin Newsom Enlists the Tech Industry to Help Pay for New Housing

The tech boom in California's bay area has left many residents unable to afford the rising housing costs. 

Now, Governor Gavin Newsom is calling on Silicon Valley companies to make a large contribution to build new homes in the area. 

However, his idea has some budget watchers and government ethics advocates "concerned about the political influence the tech industry could gain," the LA Times reports. 

Newsom said his administration is asking corporations to provide developers with "low-interest loans to build housing for teachers, nurses and other middle-class Californians."

“The workforce housing issues have been exacerbated by the success of a lot of these companies,” Newsom said when presenting the budget last week. “I do not begrudge other people's success. But that success is creating burdens and stress.”

In its initial review of Newsom’s budget, the state’s nonpartisan Legislative Analyst’s Office said the housing needs of low-income Californians far exceed the public money that’s available.

“The Legislature may want to consider whether it prefers to target the state’s limited housing resources toward the Californians most in need of housing assistance,” the analyst’s report said.

Newsom’s budget includes $300 million in tax credits to subsidize new development and an additional $300 million to help cities and counties build emergency shelters and provide other homeless services. 

Some Silicon Valley business leaders have reportedly begun to say they are ready to help the governor with his housing goals. 

Photo: Getty Images

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