Apple announced the release of $1 billion in funds to support affordable housing developments in California. Apple’s financial contribution has already aided thousands of people in the state in becoming first-time homeowners.
In addition, Apple is donating money to help build thousands of new affordable housing units and support at-risk communities. This significant step in the company’s $2.5 billion commitment to combat the state’s housing crisis highlights the importance of creative housing solutions.
“California’s communities have shown their resilience in the face of immense challenges this past year. 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,” said Kristina Raspe, Apple’s vice president for Global Real Estate and Facilities. “As we expand our efforts and move forward with our comprehensive plan to address housing in the state, we’re proud our work has made a tangible impact on the lives of so many Californians.”
Apple’s affordable housing pledges are intended to address housing scarcity and affordability in a variety of ways, focusing on different groups and filling in opportunities in the market. The $1 billion in funding, which was provided in collaboration with Destination: Home, the California Housing Finance Agency (CalHFA), and Housing Trust Silicon Valley have aided new housing development and construction, as well as enhanced programs to combat homelessness.
Apple began working with several partners in 2019 to distribute and transfer funding around the state, with the goal of deploying more than $500 million by the end of 2020 to battle the COVID-19 pandemic’s increased housing challenges.
Apple has contributed to affordable housing initiatives in 25 California counties, ranging from Alameda and Amador to Ventura and Yolo. Thousands of first-time homeowners have benefited from the incentives, which have also aided in the creation of thousands of new affordable homes and helped keep thousands of Bay Area families — including Alma Rodriguez’s family — housed during the pandemic.
Thousands of low- and moderate-income first-time homebuyers have received mortgage and down payment help thanks to Apple’s collaboration with CalHFA. Nearly two-thirds of borrowers identify as Hispanic, Black, Asian, Pacific Islander, or American Indian. Teachers, soldiers, and firefighters, who account for roughly 10% of borrowers, have received additional benefits through the scheme.
Apple has also teamed up with CalHFA to launch the first-of-its-kind affordable housing investment program in California, which has increased the amount of money available to design and build very low- to moderate-income homes at a cheaper cost. Because of this novel funding structure, the state now has access to financial resources that would otherwise be inaccessible. The program, which began in July 2020 and is now in its third year, has proven to be an important instrument in the state’s efforts to create more affordable housing units.
Several new affordable housing developments are being built in Northern California’s South Bay and East Bay districts, thanks to public-private cooperation between Apple and Housing Trust Silicon Valley. The collaboration has so far committed funds to ten projects that cover the entire Bay Area. More than 800 additional affordable housing units are expected to be built as a result of these developments, many of which will be earmarked for vulnerable communities such as homeless senior citizens, veterans, and persons with developmental disabilities.
In November 2019, Apple committed $2.5 billion to combat the housing crisis in California across a series of initiatives over several years, including:
- A first-of-its-kind $1 billion affordable housing investment fund with the state of California.
- A $1 billion first-time homebuyer mortgage assistance fund, with increased funding opportunities for essential services personnel, school employees, and veterans.
- $300 million in Apple-owned land made available for affordable housing.
- A $150 million Bay Area housing fund, in a public-private partnership with Housing Trust Silicon Valley.
- $50 million to support Destination: Home’s efforts to address homelessness in Silicon Valley.