Apple announced Monday it is committing $2.5 billion toward addressing the housing crisis in California.
The Cupertino-based company is not the first Silicon Valley tech giant to commit money toward the housing crisis, but the $2.5 billion commitment is the biggest financial promise yet. Google and Facebook this year each promised $1 billion to help address high housing costs and a shortage of supply.
Here's a breakdown of Apple's pledge:
- $1 billion will go into an affordable housing investment fund for California and other developers to build new low to moderate income housing
- $1 billion will fund a first-time buyer mortgage assistance fund for down payment assistance, especially for service personnel, school employees and veterans
- Apple is offering up to $300 million in land that it owns in San Jose for affordable housing, putting $150 million toward existing Bay Area housing organizations, such as Housing Trust Silicon Valley, and offering $50 million to support vulnerable populations through Destination Home
News of the commitment came out in a written statement quoting CEO Tim Cook as saying that he and Apple feel a civic responsibility toward housing affordability in the name of stability and opportunity.
Gov. Gavin Newsom on Monday called Apple's pledge an "unparalleled financial commitment to affordable housing," adding he hopes other companies follow its lead. The Democratic governor has urged tech companies to pitch in to ease a crisis in which there are far fewer homes and apartments than necessary to house the state’s nearly 40 million people.
Apple, Facebook and Google have been criticized for helping to create the current affordability and supply problem by allowing jobs to outpace housing construction.
The Associated Press contributed to this report.