Apple contributing $2.5 billion to fight housing shortage in California
Apple has announced a $2.5 billion plan to not just aid in the shortage of housing in California, but to ease the escalating costs for renters and homebuyers.
Apple says that departure of community members like teachers and first responders ignited the desire to help. The company notes that 30,000 people left San Francisco 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."
Of the $2.5 billion, $1 billion will go directly into an affordable housing investment fund. Another $1 billion will go into a first-time homebuyer mortgage assistance fund.
Apple intends to make available land it owns in San Jose, California worth approximately $300 million for the development of new affordable housing. To support vulnerable populations, Apple will contribute $50 million to various existing organizations to address 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."
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.
"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."
Apple says that it will "continue looking for ways to support communities and affordable housing."
Apple says that departure of community members like teachers and first responders ignited the desire to help. The company notes that 30,000 people left San Francisco 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."
Of the $2.5 billion, $1 billion will go directly into an affordable housing investment fund. Another $1 billion will go into a first-time homebuyer mortgage assistance fund.
Apple intends to make available land it owns in San Jose, California worth approximately $300 million for the development of new affordable housing. To support vulnerable populations, Apple will contribute $50 million to various existing organizations to address 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."
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.
"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."
Apple says that it will "continue looking for ways to support communities and affordable housing."
Comments
These are things that help improve the public's opinion of big business, and it's just the right thing to do anyway.
Who is going to clean the office buildings, do the dry cleaning, mow the lawns, wash the cars, drive the Uber, deliver the fad of the moment food, wash the windows, clean the house, fix the leaking faucets, and staff the restaurants to name a very very few? The service industries and the people who work in them... the foundation of the lifestyles of the rich and famous, maybe?
In addition, it’s a misappropriation of company funds, essentially theft from the shareholders to support Tim’s political agenda.
Also, Apple’s own press release does not support your suggestion the money will be repaid. Tim and Apple are extremely unwise to align with Newsom. This is basically money stolen from Apple shareholders to bolster this Governor who is a flop. He’s soon likely going to be facing recall as signatures are being quickly collected for that purpose.
https://www.apple.com/newsroom/2019/11/apple-commits-two-point-five-billion-to-combat-housing-crisis-in-california/
Related:
https://www.kcra.com/article/groups-aim-to-recall-california-governor-newsom-need-to-know/29393230
hopefully Apple wont give it to California governments.....or Apple dreams will go up in smoke.
The money won't be distributed immediately or all at once. Apple said it will "take approximately two years to be fully utilized depending on the availability of projects." Money made on the projects will be "reinvested in future projects over the next five years," the company said.
The key word is "investment" and not "grant".
Make it easy to buy one property that you're going to actually live in, but heavily restrict and tax the buying of multiple properties or pure investment properties. People love to blame the workers who move to an area for jobs for increased housing costs (be it coders as it is in the Bay Area, factory workers as it was in Detroit in the 40s and 50s, etc), but the real problem is the vulture investors who take advantage of the increased demand by snapping up a bunch of property in the area to profit from it. That's the true antisocial (anti societal) behaviour here. What kind of communities does empty houses and people living in cars create?