The median home price in San Mateo County has risen by more than 5 percent in the last year – topping $1.1 million – pushing local public school teachers out of the area where they were, and Mark Zuckerberg and Priscilla Chan want to help.
The couple's education and healthcare foundation, the Chan Zuckerberg Initiative, is joining forces with housing startup Landed to donate $5 million to at least 60 teachers to purchase real estate.
Landed pairs educators with investors who can fund the down payment, then, once the home is sold or 30 years have passed, the investor receives up to a quarter of the property's gains or losses. As long as real estate prices continue to increase, it's a benefit for those on both sides of the equation.
"We need to try new, market-based approaches to improve access to expensive housing for those who serve our communities," said Landed CEO Jonathan Asmis.
The Chan Zuckerberg Initiative's donation will be distributed to teachers in the Redwood City School District, Ravenswood City School District, and Sequoia Union High School District. The funds will immediately provide up to $120,000 to 60 participating teachers.
"In the Bay Area, few challenges are greater than the need for affordable housing," said David Plouffe, president of policy and advocacy at Chan Zuckerberg Initiative. "It's an issue affecting many of the local schools we work with, where too many students and their families are struggling to stay in their homes and neighborhoods, and recruiting and retaining top teachers is a challenge."
This is the third housing-related cause the Chan Zuckerberg Initiative has sponsored. Earlier this year, the foundation gave $3.1 million to Community Legal Services in East Palo Alto to support tenant assistance.