Microsoft will pay $7.1 million to a hostel in San Diego to stay at its hostel for a month to benefit a program that pays people living in low-income housing to move.
The company has pledged $4.9 million to the program, called HomeServe, as part of its ongoing commitment to help low- and moderate-income people who rent to pay their rent.
Microsoft, which is launching its own initiative for helping hostels afford their rent, will also provide the money to hostels that partner with Microsoft to provide free housing.
The $7 million is to be shared by Microsoft and the hostel, which will receive $1.6 million from Microsoft.
Microsoft is partnering with the San Diego hostel to provide a home and other services, including an apartment, while the hostels share in Microsoft’s funds.
“We are committed to working with hosts who have chosen to host and pay for their own housing in our company’s own homes to help those in need,” Microsoft said in a statement.
“The program is an important part of the company’s commitment to helping low- to moderate- and low-wage workers in our cities and communities.”
Microsoft is hosting HomeServes in San Jose and Seattle, and plans to host a HomeServed in Denver.
The HomeServing program has helped hostels in San Francisco, Houston, Dallas, Austin, Seattle, Seattle-Tacoma and Denver.
Microsoft has also worked with hostels to provide housing in other cities, including Seattle and Dallas.
It said in its statement that HomeServices in Denver will be paid $1,000 a month for the first six months and will continue to be paid.
Hostels in cities including New York, Los Angeles, Chicago and Chicago-Naperville will also receive a share of the program.
The program is being run by the nonprofit American Enterprise Institute, which focuses on the challenges facing low- income and working families.
The group is helping hostel owners and landlords navigate a tricky economic landscape in which low-cost housing has become more important than the need to provide quality and affordable housing.
“In San Diego, we know that the low-paying workforce in San Diegans community are often the ones forced to live with the threat of eviction, but we know too many of them are unable to afford to rent to those who have earned their income through hard work,” the statement said.
“Our program will allow these hosts to provide for themselves while also helping families with children, the elderly and people with disabilities.”
The program, which was developed in partnership with the American Institute for Housing, has been in the works for years, according to the statement.
Hosts who participate in the program can choose to pay the $1 a month, or $5,000, a month.
The American Enterprise program is focused on helping homeowners save money to help them afford their housing, but many low-skilled workers can’t afford the cost of housing, so they are left out of the loop, the statement added.