Apple on Monday announced a $2.5 billion plan to help address the California housing crisis. Apple plans to help battle to skyrocketing costs for renters and potential homebuyers. The company says the availability of affordable housing is failing to keep pace with the region’s growth.
Nearly 30,000 people left San Francisco between April and June of this year and homeownership in the Bay Area is at 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.”
Apple is also launching a new $150 million affordable housing fund in cooperation with Bay Area partners, including Housing Trust Silicon Valley, designed to support new affordable housing projects. The fund will consist of long-term forgivable loans and grants.
Apple will also donate $50 million to support Destination: Home’s efforts to address homelessness in Silicon Valley. The Cupertino firm says it 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.
Apple’s commitment to the state of California includes:
- $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.
The funding commitment is expected to take around two years to be fully utilized, depending on the availability of projects. Capital returned to Apple will be reinvested in future projects over the next five years.