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Apple pledges $2.5 billion to address the state's affordable housing problem

Andrew Khouri, Los Angeles Times on

Published in Home and Consumer News

Apple said it will direct $2.5 billion toward affordable housing in California, the latest tech giant to pledge money to one of the state's most pressing problems.

The announcement, made Monday, follows similar big pledges this year from Facebook, Google and Microsoft, which put money toward housing in its home base of Seattle. And it comes amid criticism that tech firms had done too little to ease an affordability crunch that their rapid expansion helped worsen.

"Affordable housing means stability and dignity, opportunity and pride," Apple Chief Executive Tim Cook said in a statement. "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."

Apple will spread its money out in a variety of ways, including a $2-billion investment in partnership with the state of California.

The Cupertino company said it is investing $1 billion in an affordable housing investment fund to help finance new, very low- to moderate-income housing.

According to Gov. Gavin Newsom's office, half of the $1 billion will be accessible by the state and half of it by other public entities, with the state reserving oversight authority.


Apple said that it will invest another $1 billion, which will allow the state to help more first-time home buyers with financing and down payment assistance.

Apple said capital it earns on the investments within the next five years will be reinvested in affordable housing.

Newsom, who has urged tech firms to put money toward housing, praised the announcement.

"This unparalleled financial commitment to affordable housing, and the innovative strategies at the heart of this initiative, are proof that Apple is serious about solving this issue," Newsom said. "I hope other companies follow their lead."


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