Dive Brief:
- Google and its investment fund, Red Stone Tax Exempt Funding, have invested $41.7 million in construction and permanent mortgage capital through Colorado tax-exempt bonds, helping to finance the development and rehabilitation of more than 200 apartments as part of Boulder’s affordable housing program, the Daily Camera reported.
- Google's investment helped fund the purchase of three Boulder apartment complexes, which raised the city’s percentage of affordable housing to 8%, just short of its 10% goal.
- Construction begins this month on 36 units, with work on other units set to begin this year. All units in the three complexes will receive at least $44,000 in improvements, with a focus on energy efficiency, the Daily Camera reported.
Dive Insight:
Google said it has invested in affordable housing bonds for 48 properties in 44 cities, representing the development of 8,620 affordable apartments and homes. In Google's home base of Mountain View, CA, the company said it has proposed a $200 million package, which includes investments in trails, a science center and 150 units of affordable housing in exchange for approval to develop 1.5 million square feet of office space.
Google, who is building a 330,000-square-foot facility in the city, may be contributing to the stock of affordable housing in Boulder, but residents are concerned that the company setting up shop there will actually drive up home prices and rents, which are already the highest in the state, the Daily Camera reported.
However, Boulder officials seem happy to get assistance from the tech giant.
"Google is making a choice to try and support our community's affordable housing efforts by investing here, and we can use all the help we can get from any sources," Jeff Yegian, Boulder's division of housing manager, told the Daily Camera. "Any new resources to help us with those efforts are welcomed."
Colorado has seen a marijuana-fueled rise in home prices and rents after the state legalized the drug in 2012. While some credit the state’s growth to millennials escaping the high cost of coastal cities and people seeking more recreational opportunities, most agree that the increase in marijuana grow operations and cannabis tourism is fueling it, the New Republic reported in October.