Amazon Launches $2 Billion Housing Equity Fund

Global e-commerce giant Amazon has unveiled a new Housing Equity Fund, investing more than $2 billion to preserve and create over 20,000 affordable housing units in three communities where the company has thousands of employees—Washington State’s Puget Sound; Arlington, Virginia; and Nashville, Tennessee.  Amazon’s Housing Equity Fund will help preserve existing housing and help create housing developments through below-market loans and grants to housing partners, public agencies, and minority-led organizations.

Amazon’s first investments include $381.9 million in below-market loans and grants to the Washington Housing Conservancy to preserve and create up to 1,300 affordable homes on the Crystal House property in Arlington and $185.5 million in below-market loans and grants to King County Housing Authority to preserve up to 1,000 affordable homes in the state of Washington, with additional investments to come in all three regions.

Amazon founder and CEO Jeff Bezos said that his company has been helping people in need, including building a Mary’s Place family shelter within the newest Amazon office building last year to support over 200 women and children experiencing homelessness in Puget Sound. “This new $2 billion Housing Equity Fund will create or preserve 20,000 affordable homes and help local families achieve long-term stability while building strong, inclusive communities.”  The Fund seeks to ensure that moderate- to low-income families can afford housing in resource-rich communities with easy access to neighborhood services, amenities, and jobs. 

Amazon’s Housing Equity Fund will provide an additional $125 million in cash grants to businesses, nonprofits, and minority-led organizations.  Amazon is providing below-market capital in the form of loans, lines of credit, and grants to households making between 30% – 80% of the area’s median income.  The fund will also give grants to government partners including transit agencies and school districts, which typically are not involved in affordable housing issues, Amazon said.

Amazon’s first Housing Equity Fund commitment in Virginia includes a $339.9 million below-market loan and grants worth $42 million to the Washington Housing Conservancy (WHC)—a nonprofit organization that preserves homes so they are affordable for moderate- to low-income residents. 

Home prices in the US have climbed more than 6% annually since 2012 despite low wage growth for most workers. Another obstacle is affordable apartment buildings in American cities affordable for teachers, healthcare providers, transit workers, and others with modest incomes are increasingly being redeveloped into luxury apartments, causing displacement and reducing housing options for working families.  Before the coronavirus pandemic, rental prices had also risen steadily, causing a shortage of affordable units.