MacKenzie Scott donates Beverly Hills mansions for affordable housing

In her ongoing crusade to give away at least half her wealth, billionaire MacKenzie Scott is now giving away mansions to charity.

Scott recently donated two of his homes, both in Beverly Hills, California, to the California Community Foundation (CCF), which provides grants to mission-based nonprofits in Los Angeles. The organization intends to sell both houses, worth a combined $55 billion, and use 90% of the proceeds to fund affordable housing initiatives, says CCF Senior Vice President Jarrett Barrios.

The other 10% will go to an immigrant integration program, he adds. “We have a critical need for affordable housing in Los Angeles that is related to the homeless crisis that we are experiencing, and the cure for homelessness is homes,” Barrios told CNBC Make It. [gift] will ensure a significant increase in our annual spending on creating homes and supporting tenants.”

The transaction was finalized last weekend, after Scott began the process of donating the mansions last month.

Scott, whose net worth was $38.2 billion as of Tuesday afternoon, bought one of the houses with her ex-husband Jeff Bezos for $24.4 million in 2007. They bought the Second home, located down the street, a decade later for $12.9 million. Combined, the houses have 11 bedrooms, 13 bathrooms, a pool and a tennis court, according to Zillow.

Scott did not immediately respond to CNBC Make It’s request for comment. In March, she revealed Philanthropic donations of nearly $4 billion over the previous nine months. that included $20 million to the CCF to establish the LA Arts endowment fund, which, according to the foundation’s websiteawards grants to small and medium-sized arts organizations in Los Angeles.

“When our donation team focuses on any system where people are struggling, we don’t assume that we, or any other single group, can know how to fix it,” Scott wrote in the middle in March. “Instead, we seek a portfolio of organizations that supports the ability of all people to participate in solutions. This means a focus on the needs of those whose voices have been underrepresented.”

It will take a while before the mansions turn into usable money: CCF needs to market and sell the houses before deciding which organizations will receive annual grants from the proceeds, says Barrios. The organization’s ultimate goal is to build and maintain affordable housing units for low-income people in Los Angeles and fund fair housing programs that help renters access information and apply for rental assistance programs, he adds.

Much of the timeline depends on the volatility of the housing market in Southern California, says Paula Valle Castañón, director of marketing and communications for CCF. She says contracted realtors aren’t sure yet how quickly homes will sell.

“We are grateful to MacKenzie Scott for investing in our community, and their partnership will allow CCF to increase our reach in the community,” says Castañon. “But we are also honored that she felt our team was competent and in CCF’s ability to maintain and sell two multi-million dollar homes.”

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