Apple has announced a $2.5 billion plan not only to address California’s housing shortage, but also to reduce rising costs for renters and homebuyers. Apple says the departure of community members, such as teachers and first responders, has ignited a desire for help. The company noted that 30,000 people left San Francisco between April and June this year alone because of their livelihoods, and that home ownership in the Bay Area was at its lowest level in seven years.
“Before the world knew the name Silicon Valley, Apple called the region home. We feel a deep sense of civic responsibility to ensure that it remains a vibrant place where people can live, have families and contribute to the community,” said Apple CEO Tim Cook. “Affordable housing means stability and dignity, opportunity and pride. When these things get too complicated and life is unsustainable, Apple is committed to being part of the solution. ”
Of the $2.5 billion, $1 billion will go directly to housing investment funds and another $1 billion will be spent on first-time home buyers’ mortgage assistance funds.
Apple plans to develop new affordable housing on its $300 million san Jose, California, land, and will donate $50 million to existing organizations to address homelessness in order to support vulnerable groups.
“We have worked closely with leading experts to develop a plan to address all aspects of the challenge spending to increase the supply of housing that people urgently need, and to support people at greatest risk, such as first-time buyers and young families,” said Lisa Jackson, Apple’s vice president of environment, policy and social programs. “Apple is committed to being a good neighbor and helping to write the next chapter in the region, which is home to generational innovation and creativity,” Jackson said. ”
In a public-private partnership, Apple and partners, including the Silicon Valley Housing Trust, have launched a new $150 million affordable housing fund to support new affordable housing projects. The fund will include long-term forgiven loans and grants.
Gavin Newsom, california’s governor, said: “The unparalleled financial commitment to affordable housing and the program’s core innovation strategy are proof that Apple is taking this issue seriously, and I hope other companies will follow suit.” “For homeowners and renters, high housing costs are the number one issue for the quality of life for millions of families in the state, and this can only be solved by building more homes. ”
Apple also said it would “continue to look for ways to support communities and affordable housing.”