Apple to Spend $2.5B on California Housing Crisis

Today, Apple announced its intention to respond to the housing availability and affordability crisis in California by making a $2.5 billion commitment to tackle the problem.

Apple CEO Tim Cook explains, "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 ... 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 solution, as Apple sees it, is through investment in key areas related to housing. The $2.5 billion commitment includes $1 billion for an affordable housing investment fund, $1 billion for a first-time homebuyer mortgage assistance fund, $300 million for land Apple owns and will make available for affordable housing, $150 million for a Bay Area housing fund in partnership with the Housing Trust Silicon Valley, and $50 million to support vulnerable populations through Destination: Home.

The initiatives outlined above will be run in partnership with Gavin Newsom, the governor of California, as well as community-based organizations and the wider state of California.

Speaking of Apple's pledge, Newsom said, "This unparalleled financial commitment to affordable housing, and the innovative strategies at the heart of this initiative, are proof that Apple is serious about solving this issue. I hope other companies follow their lead ... The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing. This partnership with Apple will allow the state of California to do just that.

It's hoped the mix of investment Apple is offering will allow affordable homes to more easily be built through the availability of credit to developers. Once built, new homebuyers should also find it easier to get a mortgage, and those struggling will have access to the resources they need. However, this isn't happening overnight. Apple believes it could take two years for the funding commitment to be utilized, dependent on the "availability of projects."

The first project to benefit from Apple's investment will be Destination: Home's Homelessness Prevention System, which will be expanded to offer a wider network of services to the homeless including employment assistance, legal aid, rent subsidy, and case management.

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