CUPERTINO (KRON) – Apple on Monday announced a $2.5 billion plan to help address the housing and affordability crisis in California.
Here’s a breakdown of the $2.5 billion plan:
- $1 billion: Affordable housing investment fund
– The $1 billion commitment to the state of California is a first-of-its-kind affordable housing fund that will provide the state and others with an open line of credit to develop and build additional new, very low- to moderate-income housing faster and at a lower cost.
- $1 billion: First-time homebuyer mortgage assistance fund
– Working with the state, this first-time homebuyer fund will provide aspiring homebuyers with financing and down payment assistance. Apple and the state will explore strategies to increase access to first-time homeownership opportunities for essential service personnel, school employees and veterans.
- $300 million: Apple-owned and available land for affordable housing
– Apple intends to make available land it owns in San Jose worth approximately $300 million for the development of new affordable housing.
- $150 million: Bay Area housing fund
– In a public-private partnership, Apple is launching a new $150 million affordable housing fund with partners including Housing Trust Silicon Valley to support new affordable housing projects. The fund will consist of long-term forgivable loans and grants.
- $50 million: To support vulnerable populations
– Apple will donate $50 million to support Destination: Home’s efforts to address homelessness in Silicon Valley. Apple will focus its contribution on driving systemic change across the many factors affecting homelessness. Apple will also be identifying similar efforts in Northern and Southern California, focusing on strategies that both end and prevent homelessness.
In a statement, Apple said this plan is designed to “accelerate and expand new housing production; jump-start long-term developments that would otherwise not be possible; help first-time buyers purchase homes; and support new housing and programs to reduce homelessness, after extensively studying the issue and listening to different perspectives.”
Apple called this initiative a “major step” and says it will continue looking for ways to support communities and affordable housing.