Apple released a $2.5 billion plan Monday to help address the housing shortage and affordability issues in California.
The tech giant said costs for both renters and homeowners have skyrocketed in recent years, and the availability of affordable housing has not kept pace with the region’s growth. Apple added that 30,000 people left San Francisco, California, between April and June of this year and homeownership in the Bay Area is at a seven-year low.
“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.”
The $2.5 billion plan will be broken down in the following categories:
- $1 billion in an affordable housing investment fund
- $1 billion in first-time homebuyer, mortgage assistance fund
- $300 million in Apple-owned and available land in San Jose for affordable housing
- $150 million Bay Area housing fund
- $50 million to support vulnerable populations
Apple states that the funding commitment to California is expected to take around 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.
The company is also working to identify private developers who are looking to begin construction on affordable housing projects immediately in the Bay Area.
“We’re so grateful that Apple has made this significant philanthropic commitment towards solving Silicon Valley’s growing homelessness crisis,” said Jennifer Loving, Destination: Home’s CEO.
A report by CNBC states that Apple has long been the largest employer in Silicon Valley, opening its new headquarters in Apple Park, in Cupertino in 2017. Google is currently developing an 80-acre campus in San Jose.
Apple joins Facebook, Google, and Microsoft, who have all made contributions in recent weeks to help fix the affordable housing crisis in California.