Jul 13, 2020 - Economy

Apple puts $400 million toward affordable housing

Apple logo in front of headquarters building in Silicon Valley

Photo: Smith Collection/Gado/Getty Images.

Apple announced Monday that it is allocating $400 million toward affordable housing and homeowner assistance programs in California this year, as part of the $2.5 billion commitment announced in November.

Why it matters: The housing crisis has worsened in the wake of the coronavirus pandemic, forcing states and cities to pause spending on affordable housing projects.

The backdrop: Big Tech's wealth has been blamed by some for driving up housing prices in the San Francisco Bay Area and making it unaffordable for teachers, firefighters and other workers who support the region.

  • Apple, along with Facebook, Google and Microsoft, committed a collective $5 billion to support affordable housing initiatives, but it ran into the reality that money alone can't solve the problem without changes to zoning and financing restrictions.

Details: One project is financed with Housing Trust Silicon Valley to create 250 units of affordable housing in the Bay Area. Another will provide mortgage and down payment assistance.

  • In conjunction with the California Housing Finance Agency, Apple says it will launch an "affordable housing investment support program" to increase funding available for low- to moderate-income housing.
  • Apple also says it's supporting the construction of units with Destination: Home, which helps vulnerable individuals.

Go deeper: Big Tech spends billions to help housing crisis

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