Why it matters: Apple has announced it will help tackle the housing crisis in California with a $2.5 billion plan. It aims to address the state’s increasing house prices, which has seen 30,000 people leave San Francisco between April and June this year.
Apple’s commitment includes a $1 billion affordable housing investment fund, a $1 billion first-time homebuyer mortgage assistant fund, $300 million worth of Apple land opened up for affordable housing, a $150 million Bay Area housing fund that will include long-term forgivable loans and grants, and $50 million to support vulnerable populations.
Before the world knew the name Silicon Valley, Apple called this place home. To keep this community a vibrant place for everyone, we’re committing $2.5 billion to addressing California’s housing crisis. https://t.co/ICuWOpomUY— Tim Cook (@tim_cook) 4 November 2019
The $1 billion affordable housing investment fund will provide the state of California and others with an open line of credit to build new, very low- to moderate-income housing faster and at a lower cost.
The first-time buyers fund will help homebuyers with financing and down payment assistance while increasing access to first-time homeownership for "essential service personnel, school employees and veterans."
“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. “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 says its funding commitment will take two years to be fully utilized, depending on the availability of projects. Returns from the company’s loans will be reinvested over the next five years.