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Apple taps first $400 million of $2.5 billion California housing pledge

Louis Hansen, The Mercury News on

Published in Home and Consumer News

Making a down payment on its housing pledge, Apple announced Monday it has committed $400 million to affordable housing projects this year across California, including immediate assistance for struggling Bay Area tenants and four, new low-income projects across the region.

The short-term aid and construction projects mark the first installment of the tech giant's $2.5 billion commitment to address the state's housing crisis.

"At a time when so many members of our community are facing unprecedented challenges, we believe it's critical to make sure that their hopes for the future are supported through tangible programs and results," Apple vice president of global real estate Kristina Raspe said in a statement. The Cupertino company has kept the program on-track despite widespread disruption from the COVID-19 pandemic.

The corporate funds come amid growing concerns for short-term housing security during the health crisis, on top of the decades-long, growing deficit of affordable housing for low and very-low income residents. Apple's planned overall contribution is the largest corporate pledge among several Silicon Valley companies -- including $1 billion commitments from Facebook and Google -- in the last 13 months.

Tech companies have drawn criticism for not doing enough to alleviate the Bay Area housing crisis that accompanied the quick-growth of sprawling corporate campuses and a rapidly expanding workforce.

Apple announced in November a $2.5 billion, multiyear commitment to address the affordable housing shortage in the state. The company, estimated to have about $190 billion cash on hand, has prioritized communities around its major facilities, and also focused on reaching vulnerable, minority populations.

 

The company did not reveal additional financial details.

Apple's first step combines short- and long-term relief for struggling renters, homeless residents and first-time homebuyers. As part of its initial pledge, the company made long-term commitments of $50 million to Destination: Home, a San Jose nonprofit dedicated to sheltering the homeless, and $150 million to Housing Trust Silicon Valley to establish the Apple Affordable Housing Fund.

Destination: Home has used its initial funds to expand its homelessness prevention program during the CVOID-19 crisis. The program has served 1,500 Bay Area families through various aid organizations, an expansion of several hundred families from the previous year. The money has also supported major construction projects, including the nonprofit's new, 80-unit project in Santa Clara for poor or homeless seniors.

Destination: Home CEO Jennifer Loving said Apple's funding has boosted development projects and provided needed resources as more families, especially in communities of color, lose income and slip toward homelessness.

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