Apple has contributed over $1 billion to California affordable housing

AppleInsider

Apple has announced that its contribution to the efforts to combat California's housing shortage, spending over $1 billion during the last 18 months.

Render of one of the affordable housing projects backed by Apple

Following its 2019 pledge of $2.5 billion, and its 2020 $400 million spend, Apple says it has now contributed more than $1 billion to the effort.

"California's communities have shown their resilience in the face of immense challenges this past year," said Kristina Raspe, Apple vice president for Global Real Estate and Facilities, in a statement. "As we look to a brighter future ahead, Apple is committed to continuing our work with partners across the state to support these communities and help combat the housing crisis in meaningful ways."

"As we expand our efforts and move forward with our comprehensive plan to address housing in the state," she continued, "we're proud our work has made a tangible impact on the lives of so many Californians."

Describing the $1 billion as a "major milestone" in its commitment to combat the housing crisis, Apple says that it is backing "innovative housing solutions."

Reportedly, Apple has already helped "thousands of people in the state become homeowners for the first time." It has also provided funds toward the construction of "thousands of new affordable units," in its aim of "supporting at-risk communities."

Apple is working in partnership with Destination: Home, the California Housing Finance Agency (CalHFA), and Housing Trust Silicon Valley. The work ranges from new building development, to expanding programs to help the homeless.

"I found out about Destination: Home from the community garden and kitchen where I volunteer," Alma Rodriguez told Apple. "Once the pandemic hit, it was very hard to provide for my family, and every dollar meant a lot to me."

When I found out about receiving the support I couldn't believe it -- without that help we would have lost our internet and so much more," she continued. "I have always given back to my community, and this time my community gave back to me. I am so grateful that someone is fighting for us, especially in these times."

Taylor Mestres and her wife, Keteria Lara are the first in their families to own their own home

Apple says that with the Homeless Prevention System, it has supported more than 15,000 families since the start of the pandemic. Together with Destination: Home, Apple has helped fund the construction of more than 1,100 new affordable and supportive housing.

This supportive program has included mortgage and down payment assistance to low-income and moderate-income first-time buyers. It has benefited veterans, firefighters, and teachers such as Taylor Mestres and partner Keteria Lara.

"[We] wanted to break that generational system of constantly renting, and to have something with our name on it that was ours," Mestres and Lara told Apple. "[We knew] it would only be possible if we could find a down payment assistance program."

"[The] program is so rewarding and makes it so easy," continued Mestres. "[I hope to] advocate for it and open it to other people who made need it."

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genovelle

It really sounds like they need to turn some cash to their employee housing issues   

crowley

I'm not clear what this means, have Apple donated $1bn, or invested it in construction themselves, of which some/most/all/extra of the investment they recouped on the sale?

It's pretty cool either way, especially the homelessness projects.

gatorguy

crowley said:

I'm not clear what this means, have Apple donated $1bn, or invested it in construction themselves, of which some/most/all/extra of the investment they recouped on the sale?

It's pretty cool either way, especially the homelessness projects.

I thought Apple was making an investment of sorts, a fund to assist the building of affordable housing but with the owner expected to repay the money at a very low interest rate so that it can be reinvested for future building. I think they also made some land available as did at some other large techs, likely due to now looking outside of California for future company expansion and thus that land no longer needed. 

In any event it's not an outright grant. Repayment is expected. 

EDIT: Looking back to the original article I remembered correctly. 

crowley

gatorguy said:

crowley said:

I'm not clear what this means, have Apple donated $1bn, or invested it in construction themselves, of which some/most/all/extra of the investment they recouped on the sale?

It's pretty cool either way, especially the homelessness projects.

I thought Apple was making an investment of sorts, a fund to assist the building of affordable housing but with the owner expected to repay the money at a very low interest rate so that it can be reinvested for future building. I think they also made some land available as did at some other large techs, likely due to now looking outside of California for future company expansion and thus that land no longer needed. 

In any event it's not an outright grant. Repayment is expected. 

EDIT: Looking back to the original article I remembered correctly. 

So Apple are effectively a mortgage lender now too?

Cool I guess, though seems weird.

gatorguy

crowley said:

gatorguy said:

crowley said:

I'm not clear what this means, have Apple donated $1bn, or invested it in construction themselves, of which some/most/all/extra of the investment they recouped on the sale?

It's pretty cool either way, especially the homelessness projects.

I thought Apple was making an investment of sorts, a fund to assist the building of affordable housing but with the owner expected to repay the money at a very low interest rate so that it can be reinvested for future building. I think they also made some land available as did at some other large techs, likely due to now looking outside of California for future company expansion and thus that land no longer needed. 

In any event it's not an outright grant. Repayment is expected. 

EDIT: Looking back to the original article I remembered correctly. 

So Apple are effectively a mortgage lender now too?

Cool I guess, though seems weird.

Not really. What they've done is invest the funds in an agency that makes the funds available, a lender of sorts. It's not actually an Apple for-profit venture as far as I can tell nor does Apple have any input on the qualifications. 

OutdoorAppDeveloper

If Apple really cares about affordable housing, it should let its employees work remotely every day of the week. That way they could find housing in more affordable places than the bay area.

bloggerblog

$1B in Cupertino gets you about 10 houses 

mcdave

This is for everyone though, not just rainbow people right?

I’m not sure these affordable housing schemes work, at least not here in NZ. Here it just validates the current ridiculous market prices and fails to tackle their cause.  Affordable rentals and downward pressure on the rental market would solve the more systemic problem of rentals financing housing oblivion.

mcdave

crowley said:

I'm not clear what this means, have Apple donated $1bn, or invested it in construction themselves, of which some/most/all/extra of the investment they recouped on the sale?

It's pretty cool either way, especially the homelessness projects.

Apple House? Ive would be keen.

JWSC

Very cool that Apple is doing this.  Of course, Apple can see the problem themselves with a very average and unexceptional Cupertino house going for a $1,000,000 plus.  One would hope that other California companies would make similar efforts, if for no other reason than to attract and retain employees.

Unfortunately, this is a bandaid on a much larger problem that Apple cannot solve with money alone.  The generational effect of Proposition 13 coupled with ever increasing state regulatory requirements have put a stranglehold on the liquidity of California’s housing market, driving prices to insane levels and locking out a younger generation that does not stand to inherit their parent’s house.

MicDorsey

mcdave said:

This is for everyone though, not just rainbow people right?

I’m not sure these affordable housing schemes work, at least not here in NZ. Here it just validates the current ridiculous market prices and fails to tackle their cause.  Affordable rentals and downward pressure on the rental market would solve the more systemic problem of rentals financing housing oblivion.

Downward pressure on whom? Exactly what does that look like?

And I'm guessing you're all for it as long as your "solution" doesn't affect *you*. Right?

mcdave

MicDorsey said:

mcdave said:

This is for everyone though, not just rainbow people right?

I’m not sure these affordable housing schemes work, at least not here in NZ. Here it just validates the current ridiculous market prices and fails to tackle their cause.  Affordable rentals and downward pressure on the rental market would solve the more systemic problem of rentals financing housing oblivion.

Downward pressure on whom? Exactly what does that look like?

And I'm guessing you're all for it as long as your "solution" doesn't affect *you*. Right?

Downward pressure on rental pricing, at the moment it’s skyrocketing here and it justifies/finances to the equally ridiculous property purchase prices.

In my area we’ve experienced 12% YoY increases. Great from an investor perspective as they’re running at a 900% return across the decade (rentals cover mortgages so their capital investment is negligible) but socially disastrous.

It would favour me & anyone who wants a roof over their head - too much to ask from a 1st-world country?

We do need new off-shore manufactured housing products but I’m not sure that’s in Apple’s wheelhouse though their supply-chain knowledge would be gold.

JWSC

mcdave said:

This is for everyone though, not just rainbow people right?

I’m not sure these affordable housing schemes work, at least not here in NZ. Here it just validates the current ridiculous market prices and fails to tackle their cause.  Affordable rentals and downward pressure on the rental market would solve the more systemic problem of rentals financing housing oblivion.

The best way to impose downward pressure on the rental market would be to allow developers to build more rental properties to meet or even exceed market demand.  The same holds true for residential housing.  But increasing state regulatory requirements continue to drive up development and construction costs.  Until the California state legislature and local governments conduct a fundamental reassessment of their regulatory requirements, nothing will change.

AppleZulu

JWSC said:

mcdave said:

This is for everyone though, not just rainbow people right?

I’m not sure these affordable housing schemes work, at least not here in NZ. Here it just validates the current ridiculous market prices and fails to tackle their cause.  Affordable rentals and downward pressure on the rental market would solve the more systemic problem of rentals financing housing oblivion.

The best way to impose downward pressure on the rental market would be to allow developers to build more rental properties to meet or even exceed market demand.  The same holds true for residential housing.  But increasing state regulatory requirements continue to drive up development and construction costs.  Until the California state legislature and local governments conduct a fundamental reassessment of their regulatory requirements, nothing will change.

What sort of regulations do you propose should be relaxed? Building developers are notorious for taking every shortcut they can get away with. Building regulations can add upfront costs, but they also help assure a 2.4 trembler won't destroy your house.