Apple commits $2.5 billion to combat housing crisis in California

Apple’s commitment to the state of California includes:

  • $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 land will be available 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.

The funding commitment to California is expected to take approximately two years to be fully utilized depending on the availability of projects. Capital returned to Apple will be reinvested in future projects over the next five years.

In addition to these initiatives, Apple is working to identify private developers who, with the right financing and investment, are ready to start construction on affordable housing projects in the Bay Area immediately.

Apple will also provide $200 million to support new lower-income housing and help some of the most vulnerable populations in the Bay Area: 

  • $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.

“We’re so grateful that Apple has made this significant philanthropic commitment towards solving Silicon Valley’s growing homelessness crisis,” said Jennifer Loving, Destination: Home’s CEO. “With this generous contribution, we’ll be able to scale two proven strategies for reducing homelessness in our community: the production of more permanently affordable housing for our most vulnerable residents and an expansion of prevention programs that help at-risk families remain stably housed. Apple’s contribution serves as an example of how Silicon Valley companies can work in partnership with the public and nonprofit sectors to address this huge challenge, and I hope others will follow their lead in the weeks and months ahead.”

One of the first projects Apple will fund as part of its philanthropic commitment to Destination: Home will be an expansion of the organization’s Homelessness Prevention System, a network of service providers offering employment assistance, legal aid, rent subsidy, case management and other support to reduce 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.”

By putting its $2.5 billion investment to use across multiple initiatives and partners, Apple’s housing initiative offers a comprehensive and multi-pronged approach to address some of the most urgent challenges facing affordable housing in California. This initiative is a major step, and Apple will continue looking for ways to support communities and affordable housing.

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