The $500 million housing pledge by Microsoft has portrayed the assumption of private sectors to undertake projects that the government is supposed to do to the people.
The signing of this housing pledge is significant to the citizens of the state of Washington, where housing cost is at a rising point. This is a great help for those who are aiming to settle down to permanent homes rather than succumbing to government programs on affordable rentals.
The federal government has been reported to have provided three times more on housing projects in the ‘70s through the National Low Income Housing Coalition (NLIHC).
Now, the subsidy goes to funding families who are renting on apartments and buildings owned by private individuals. The housing assistance programs executed by private organizations have given more low-cost housing than the government has ever done over the past two decades.
Microsoft has also added that they planned on spending $25 million granted to local nonprofit organizations focusing on the community issues regarding homelessness.
However, the money would be invested in affordable housing and in middle-class developments that are not financially feasible in the absence of lower-interest loans.
Once loans are repaid, Microsoft plans to lend the capital to other development projects to create ten thousand housing units or more. They have also called for more companies to follow suit on their involvement with housing projects.
Some critics like Ed Goetz of the University of Minnesota and Diane Yentel of NLIHC expressed their opinions on the effects of the government being detached from these projects, saying that this is not a permanent solution to Seattle’s problems, and the government must not continue letting this tackled only by the private sectors.
Gordon Lasner of Hunter College also expressed his thoughts with regard to the effectiveness of the private sectors’ movements on housing, saying that, even if Americans find this project a relief on housing problems, this is not enough to cope with the challenges.