Apple announced Monday it is committing $2.5 billion toward addressing the housing crisis in California.
The Cupertino-based company is not the first Silicon Valley tech giant to commit money toward the housing crisis, but the $2.5 billion commitment is the biggest financial promise yet. Facebook and Google each committed $1 billion toward Bay Area housing.
Here’s a breakdown of Apple’s pledge:
- $1 billion will go into an affordable housing investment fund for California and other developers to build new low to moderate income housing
- $1 billion will fund a first-time buyer mortgage assistance fund for down payment assistance, especially for service personnel, school employees and veterans
- Apple is offering up to $300 million in land that it owns in San Jose for affordable housing, putting $150 million toward existing Bay Area housing organizations, such as Housing Trust Silicon Valley, and offering $50 million to support vulnerable populations through Destination Home
News of the commitment came out in a written statement quoting CEO Tim Cook as saying that he and Apple feel a civic responsibility toward housing affordability in the name of stability and opportunity.
Apple, Facebook and Google have been criticized for helping to create the current affordability and supply problem by allowing jobs to outpace housing construction.
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Source: NBC Bay Area