Apple Pledges $2.5 Billion To Fight Housing Availability And Affordability Crisis In California

Apple announced on Monday via a Newsroom press release that it has pledged $2.5 billion to fight the tech giant's so-called California housing availability and affordability crisis., as from April to June, nearly 30,000 people have left San Francisco, leading the Bay Area's house ownership to a seven-year low.

“Before the world knew the name Silicon Valley, and long before we carried technology in our pockets, Apple called this region home, and we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community,” said Tim Cook, Apple’s CEO. “Affordable housing means stability and dignity, opportunity and pride. When these things fall out of reach for too many, we know the course we are on is unsustainable, and Apple is committed to being part of the solution.”

The iPhone maker said it has pledged $1 billion to affordable housing investment funds to provide credit lines for the state and other states to develop new low- and middle-income housing; and to invest $1 billion in first-time home buyer mortgage aid funds. Financing and down payment assistance for first-time homebuyers; Apple’s $300 million land in San Jose will be used to develop affordable housing. The company will also provide $150 million to support low-income housing in the San Francisco Bay Area, and $50 million to support vulnerable populations. Here are the commitments in details:

• $1 billion affordable housing investment fund: The $1 billion commitment to the state of California is a first-of-its-kind affordable housing fund that will provide the state and others with an open line of credit to develop and build additional new, very low- to moderate-income housing faster and at a lower cost.

• $1 billion first-time homebuyer mortgage assistance fund: Working with the state, this first-time homebuyer fund will provide aspiring homebuyers with financing and down payment assistance. Apple and the state will explore strategies to increase access to first-time homeownership opportunities for essential service personnel, school employees and veterans.

• $300 million Apple-owned land will be available for affordable housing: Apple intends to make available land it owns in San Jose worth approximately $300 million for the development of new affordable housing.

• $150 million Bay Area housing fund: In a public-private partnership, Apple is launching a new $150 million affordable housing fund with partners including Housing Trust Silicon Valley to support new affordable housing projects. The fund will consist of long-term forgivable loans and grants.

• $50 million to support vulnerable populations: Apple will donate $50 million to support Destination: Home’s efforts to address homelessness in Silicon Valley. Apple will focus its contribution on driving systemic change across the many factors affecting homelessness. Apple will also be identifying similar efforts in Northern and Southern California, focusing on strategies that both end and prevent homelessness.

In conclusion, while this initiative is a major step in the right direction, Apple claims that it will continue to look for new ways to help with affordable housing efforts.