Apple today announced that it is launching a scheme worth $2.5 billion to address the housing crisis in California. Apple wants to tackle the issue of skyrocketing house prices in its home state.
Apple’s commitment includes $1 billion in affordable housing investments, $1 billion in mortgage assistance for first-time buyers, and $300 million worth of Apple land opened up to affordable housing projects.
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In a statement, Apple said it is partnering with Governor Gavin Newsom, the state of California, and community organizations.
Specifically, the $1 billion affordable housing fund will provide an “open line of credit” for California to build housing for very low to moderate-income households. The billion dollars allocated to mortgage assistance will help first-time buyers get on the property ladder with financing and down payment assistance. Apple is also looking at ways to specifically help workers in essential emergency services, schools, and veterans.
Returns from Apple’s loans will be reinvested over the next five years.
Apple is also committing $200 million to a new initiative targeted at lower-income housing and vulnerable populations in the Bay Area. $150 million of that figure will go towards long-term forgivable loans and grants for those that need it. The other $50 million will be donated to the Destination: Home charity, which aims to reduce homelessness in Silicon Valley.
Apple VP Environment Lisa Jackson said Apple is addressing the challenge on all fronts.
“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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