Apple Pledges $2.5 Billion for Affordable California Housing Description video: Apple Inc. will contribute $2.5 billion toward easing the housing crisis in California, joining other technology companies in helping alleviate a problem they are often blamed for exacerbating.\nWith the pledge Monday, the Cupertino, […]
Apple Pledges $2.5 Billion for Affordable California Housing
Apple Inc. will contribute $2.5 billion toward easing the housing crisis in California, joining other technology companies in helping alleviate a problem they are often blamed for exacerbating.\nWith the pledge Monday, the Cupertino, California-based iPhone maker follows Facebook Inc. and Google, which have each committed $1 billion to combat skyrocketing housing costs in the Bay Area. In January, Microsoft Corp. pledged $500 million toward affordable housing in Seattle.\nThe growth of technology companies like Apple has contributed to an increasingly imbalanced housing environment. Deep-pocketed tech firms employ tens of thousands of high-earners who have bought or rented homes, leaving fewer options for poor and middle-income residents who are being pushed further and further out of the area. New housing hasn’t been built fast enough to keep up with demand.\n“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,” Chief Executive Officer Tim Cook said in a statement. “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.”\nApple’s commitment includes $1 billion toward an affordable housing investment fund to finance construction of new housing and $1 billion to help first-time home buyers with financing and down payments.\n\nSubscribe to our YouTube channel: https://bit.ly/2TwO8Gm\n\nTICTOC ON SOCIAL:\nFollow TicToc on Twitter: https://twitter.com/tictoc\nLike TicToc on Facebook: https://www.facebook.com/tictoc\nFollow TicToc on Instagram: https://www.instagram.com/tictoc\nSubscribe to our newsletter: https://bit.ly/2FJ0oQZ\n\nTicToc by Bloomberg is global news for the life you lead. We are a 24/7 news network that covers breaking news, politics, technology, business and entertainment stories from around the globe, supported by a network of Bloomberg’s 2,700 journalists across 120 countries.
Apple invests $ 2.5 billion in affordable housing
Apple committed $ 2.5 billion to tackle California’s housing crisis, exacerbated by rapid growth in tech companies.
The company has developed a five-point plan that includes 1 billion investments in affordable housing, 1 billion investments in the form of mortgage assistance, and acquisition of land total cost of 300 million. Remaining 200 million dollars will go to housing stock in San Francisco and to support vulnerable groups.
Today, in San Francisco, about 7 thousand people were left homeless.. There is a shortage of affordable homes across the Bay, crowding out middle- and low-income workers such as teachers and restaurant workers. Experts believe the influx of tech companies and their well-paid workers has contributed to the ongoing housing crisis.
The money will not be distributed immediately. Apple said it would take approximately two years to fully utilize the allocated funds. The money earned from the projects will be reinvested in the future initiatives of the company.
The finance package was created in partnership with California Governor Gavin News. He noted the seriousness with which Apple approached the issue and hopes that other companies will follow suit..
It is noteworthy that some market participants have already announced similar measures, but with less investment.
In June, Google pledged to provide $ 1 billion for the conversion of the land owned by the company for affordable housing and created an investment fund to encourage developers to build at least 5 thousand units of affordable housing in the region.
The housing issue received nationwide attention and was the subject of serious debate during the last California elections..
Policymakers are also proposing plans that will force tech companies to contribute more to affordable housing development.. Seattle City Council reviewed and, ultimately rejected a tax on large employers like Amazon that would fund efforts to tackle the real estate problem.