Apple announced on Monday that is pledging $2.5 billion for an affordable housing initiative in the company’s home state of California.
The plan includes funds for statewide initiatives as well as some funds set aside specifically for projects in the Bay Area region where Apple and many other Silicon Valley tech giants are based.
“Before the world knew the name Silicon Valley, and long before we carried technology in our pockets, Apple called this region home, and we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community,” Apple CEO Tim Cook said in the housing announcement.
He said that Apple is “committed to being part of the solution” to the “unsustainable” course the state is on regarding housing affordability.
The funds Apple is pledging include $1 billion toward an affordable housing investment fund, $1 billion toward a first-time homebuyer mortgage assistance fund, $150 million for a Bay Area housing fund, and $50 million to support vulnerable populations, according to the company announcement.
The company is also planning to make $300 million of Apple-owned land in San Jose available for affordable housing.
The commitment is in partnership with the state government.
California Gov. Gavin Newsom (D) said he hopes other companies follow Apple’s lead.
“The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing. This partnership with Apple will allow the state of California to do just that,” Newsom said in the announcement.
The funding is expected to take about two years to be fully utilized depending on the availability of projects. Capital returned to Apple will be reinvested in future projects over the next five years, according to Apple.