As its contribution to the problem that it had partly caused, Cupertino-based tech giant Apple announced that it has set aside $2.5 billion as a financial package aimed at helping solve the housing crisis in California.
Due to the rapid expansion of tech firms such as Apple in California, the state has seen a rapid increase in demand for affordable housing, resulting in a steep rise in prices and low supply.
The increased demand and low supply have pushed low to mid-income earners out of their homes. In San Francisco, there are an estimated 7,000 people in the city that are homeless.
The influx of high-paid workers for large tech firms has caused a shortage of affordable homes across the Bay Area, leaving some residents with less and more expensive options.
In a press release published this week, Apple CEO Tim Cook stated that his company does value the importance of providing affordable housing. Cook explained that affordable housing provides individuals with a sense of stability and dignity, things that everyone should be able to have access to. Apple intends to be a part of the solution to the state's current predicament and the financial aid it is providing is just the start.
Apple's $2.5 billion financial package will be used to execute the firm's five-point plan. The plan will include setting up a $1 billion affordable housing investment fund. Another $1 billion will be used to provide mortgage assistance for first-time homebuyers. Apple also committed to opening up around $300 million worth of its properties for housing developments. The remaining $200 million will reportedly be used to support San Francisco's housing fund.
According to Apple, the financial package it will be providing will be distributed over two years for it to be fully utilized. The release of the funds will be dependent on the availability of projects and investments centered on housing developments. Any profits that will be generated from the package's supported projects will reportedly be reinvested in future projects over the next five years.
The financial package was established in partnership with California Government Gavin Newsom as a possible remedy to the state's current crisis. Apple stated that it hopes that its contribution will become an example for other tech companies operating within the state.
Apart from Apple, other tech giants have also announced their intention of helping find a solution to California's housing crisis. In June, Google had pledged $1 billion to redevelop a portion of the properties it owns for affordable housing developments. The fund's goal will be to incentives developers to build at least 5,000 homes within the next couple of years. Meanwhile, Facebook also pledged $500 million earlier in the year to help in solving the state's housing situation.
