CityLab Daily: What the SVB Collapse Means for Affordable Housing
Also today: New York City is looking for its next AI czar, and the $3 billion replacement for Rikers Island Jail is behind schedule.
When Silicon Valley Bank shut down on Friday, it sent politicians and executive scrambling to contain shockwaves through California’s broader economy. The collapse caused massive losses beyond the tech and startup scenes; the bank was also a key lender for other industries, including affordable housing development. In San Francisco, construction has stalled, for example, on The Kelsey Civic Center — a 112-unit low-cost housing project that was supposed to break ground this week with a $52 million loan from SVB.
The fallout comes as California is under immense pressure to build more affordable housing amid sky-high rents and home prices. Developers say they’re confident other lenders will step in to take SVB’s place, write Dana Hull and Sarah Holder. But underwriting takes time, and any delay can add to a project’s overall price tag. Today on CityLab: SVB Didn’t Just Lend to Startups. It Was Key Partner for Affordable Housing