Apple has announced a $2.5 billion plan to address the California housing crisis.
“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, Apple’s CEO.
“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 new initiative will accelerate and expand new housing production in the state and support new housing and programs to reduce homelessness.
“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,” said Gavin Newsom, governor of California.
“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.”
Where will the money go?
One billion dollars of the new fund will go towards investing in affordable housing, whilst another billion will be used to help first-time homebuyers secure mortgages.
Another $300 million will be offered via Apple-owned land to build affordable housing, and Apple will offer a $150 million Bay Area housing fund to support new affordable housing projects and a $50 million fund to support vulnerable people such as those who are suffering from homelessness.
“We have worked closely with leading experts to put together a plan that confronts this challenge on all fronts, from the critical need to increase housing supply, to support for first-time homebuyers and young families, to essential philanthropy to assist those at greatest risk,” said Lisa Jackson, Apple’s vice president of Environment, Policy and Social Initiatives.
“Apple is committed to being a good neighbor and helping to write the next chapter of the region that has been a great home of innovation and creativity for generations.”
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