Apple announced on Monday that it is pledging $2.5 billion USD for an affordable housing initiative in the company’s home state of California.
The plan includes funds for statewide initiatives as well as some funds set aside specifically for projects in the Bay Area region where Apple and many other Silicon Valley tech giants are based.
“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 Apple CEO 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’s commitment includes a $1 billion USD 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.
Apple’s overall aim is to “accelerate and expand new housing production” while also helping people get on the property ladder once those homes are built.
Gavin Newsom, governor of California, called the investment “unparalleled:”
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.
The funding is expected to take about 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, according to Apple.