Airbnb's Latest Initiative? $250 Million To Get Shovels In The Ground

• 11:38 AM EDT

by UrbanTurf Staff

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On Monday, Airbnb announced a $250 million commitment to finance rental housing developments that are fully entitled but can't secure the last bit of capital needed to break ground. 

The company is calling the money "last-dollar" financing — a targeted, below-market investment meant to close the small remaining gap on projects that have already cleared zoning, permitting, and other regulatory hurdles but are otherwise stuck. Airbnb-commissioned research points to roughly 750,000 housing units nationally that fit that description, and the company says its $250 million, deployed at below-market returns with a focus on affordable and mixed-income developments, could unlock as much as $5 billion in total capital investment over the next decade as it draws in other financing alongside it.

The first project to receive funding is in Austin, Texas, where Airbnb is putting $6.4 million toward 201 affordable units. The company says it's soliciting additional projects from developers, nonprofits, and community organizations through a dedicated application process, suggesting the $250 million figure is a starting point rather than a cap.

For more details on the initiative, click here.

This article originally published at https://dc.urbanturf.com/articles/blog/airbnbs_latest_initiative_250_million_to_get_shovels_in_the_ground/24991.