Apple Commits $2.5 Billion Towards Tackling California Housing Crisis

Andrew Cummings
November 6, 2019

Bernie Sanders isn't impressed with Apple Inc's (NASDAQ: AAPL) pledge to commit $2.5 billion towards solving California's housing crisis.

The tech company joins Google and Facebook, with each company vowing to provide $1 billion toward finding housing solutions in a state run by Democrats for decades.

The first-time buyers fund will help homebuyers with financing and down payment assistance while increasing access to first-time homeownership for "essential service personnel, school employees and veterans".

Rob Reynolds of Al Jazeera reports from Los Angeles.

"The tech company will use $300 million worth of its land to develop affordable housing in San Jose, Calif., it said". California lawmakers enacted a statewide rent cap on Wednesday covering millions of tenants, the biggest step yet in a surge of initiatives to address an affordable-housing crunch nationwide.

"If they make the land available for free or very cheap, then you can do something", Shulman said.

As The New York Times reported, California has added 308 housing units for every 1,000 new residents since 2005.

The Monday announcement follows moves by Facebook and Google to each donate $1 billion to addresss the state's housing crunch.

The company's philanthropic efforts don't stop there, in addition to the major financial investment, Apple is looking to partner with private developers who can begin construction in the Bay Area immediately. "Trying to hire workers for their campuses in the Bay Area is becoming more expensive".

The budget for affordable housing involves opening a line of credit for households with low to moderate income.

"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", California Gov. Gavin Newsom said in a statement. But according to the nonprofit California Housing Partnership, the state needs 1.4 million additional below-market homes to satisfy demand.

In keeping with Sanders, if corporations like Apple pay their tax with out hiding something from the Authorities, the federal government would have the ability to generate vital quantities of funds to spice up the housing sector of California which is at present a housing disaster. Cupertino had debated a similar proposal but put it off amid opposition from Apple.

In its announcement, Apple dedicated to together with $1 billion in the direction of an low-priced housing funding fund and a state-run $1 billion mortgage help fund for first-time homebuyers.

But pushback - "both from tenants' rights groups anxious that it would accelerate the process of gentrification and from neighborhood activists who simply don't want apartment buildings built near their single-family homes", - is strong, Lee reports.

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