Apple announced a comprehensive $2.5 billion plan to help address the housing availability and affordability crisis in California. The funding commitment to California is expected to take approximately two years to be fully utilized depending on the availability of projects.
California Governor Gavin Newsom tweeted: “The cost of housing in California is the defining concern for millions of families. It can only be fixed by building more housing. This partnership with the state of California will do just that – thank you Apple for stepping up.”
The $2.5 Billion Apple Commitment 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.
$150 million Bay Area housing fund: In a public-private partnership, Apple is launching a new $150 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.
When my husband and I moved to California years ago, we learned how difficult it was to find affordable housing. It is clear that California has a huge problem with this issue, and I suspect the cost of housing is one factor that leads to homelessness. My hope is that Apple’s commitment will improve the lives of people who are struggling.