Billionaire MacKenzie Scott is currently giving out houses to charities as part of her ongoing campaign to donate at least half of her money.
Two of her residences, both in Beverly Hills, California, were recently given to the California Community Foundation (CCF), which awards funds to charitable organizations with a mission in Los Angeles. According to CCF Senior Vice President Jarrett Barrios, the organization plans to sell both mansions, which are valued a total of $55 million, and utilize 90% of the proceeds to support affordable housing programs.
He adds that the remaining 10% will fund a program for integrating new immigrants. “Homes are the remedy for homelessness,” Barrios tells CNBC Make It. “We have a significant need in Los Angeles for affordable housing that is tied to the homelessness epidemic we are facing.” “This [gift] will guarantee a significant boost in our annual spending on housing creation and tenant support.”
Scott started the donation procedure for the mansions last month, and the deal was concluded this past weekend.
One of the residences was purchased in 2007 for $24.4 million by Scott and her ex-husband Jeff Bezos, whose net worth was at $38.2 billion as of Tuesday afternoon. They paid $12.9 million for the second house, which was right across the street, ten years later. According to Zillow, the residences have 11 bedrooms, 13 bathrooms, a pool, and a tennis court together.
CNBC Make It contacted Scott for comment, but he didn’t return it right away. She revealed humanitarian donations totaling around $4 billion over the previous nine months in March. On its website, the foundation states that it gave $20 million to the CCF to create the LA Arts endowment fund, which awards grants to Los Angeles’ small- to medium-sized art organizations.
Scott stated on Medium in March, “When our giving team focuses on any system in which people are struggling, we don’t assume that we, or any other single group, can know how to repair it. Instead, we seek a portfolio of organizations that encourages everyone to take part in finding solutions. This entails putting an emphasis on the requirements of people whose voices have not been heard.
Before choosing which groups would receive yearly grants from the sales revenues, CCF must market and sell the mansions, according to Barrios, so it will take some time before the mansions become useful funds.
He continues, “The organization’s ultimate objective is to fund housing justice initiatives that aid tenants in accessing information and applying for rental assistance programs, as well as create and maintain affordable housing units for low-income persons in Los Angeles.”
According to Paula Valle Castanon, director of marketing and communications at CCF, a significant portion of the timeline is based on how volatile the housing market is in southern California. She claims that the hired realtors are unsure of the expected timing of the home sales.
According to Castanon, “We are grateful to MacKenzie Scott for investing in our community and for her cooperation, which will enable CCF to expand our presence in the neighborhood. But we’re also flattered that she thought highly of our staff and of CCF’s capacity to care for and market two multimillion-dollar houses.