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This year, Apple announced that it would pledge more than $400 million this year in the battle against California's housing crisis. The tech company's donation is part of a total $2.5 billion initiative in partnership with Housing Trust Silicon Valley and the state's housing agency.

According to Apple's statement, the funding assistance for housing will support thousands of Californians with new affordable housing units. The project is to create more than 250 new units across the Bay Area.

It will also include financial services such as mortgage and down payment assistance. A portion of Apple's $400 million housing assistance donation will be used to aid first-time low-income and mid-income homebuyers.

The tech giant collaborated with Destination: Home to create additional affordable housing to support Silicon Valley's vulnerable population.

What's included in Apple's housing assistance?

Apple's public-private partnership with Housing Trust Silicon Valley supports multiple housing developments across the North, East, and South bay regions. The units will be reserved for veterans, the homeless, and individuals with developmental disabilities.

The tech company also partnered with the California Housing Finance Agency to provide teachers, veterans, and firefighters with mortgage and down payment assistance. The financial service would be made available to the state's diverse population, including Hispanics, Black, Asians, Native Americans, and Pacific Islanders.

Apple's partnership with Destination: Home will go towards building 1,000 new units of affordable housing in Silicon Valley. Over 80 units in Santa Clara will house seniors who are homeless or at risk of losing their homes.

The tech company's support also helps Destination: Home expand its Homelessness Prevention System capacity. The organization can now keep 1,500 families from losing their homes.

The tech giant initially promised to donate $2.5 billion as assistance for California's housing shortage, CNBC reports. Here's how it plans to spend the funding.

  • $1 billion will go towards the state's affordable housing investment fund
  • $1 billion will help assist first-time homebuyers with mortgages and down payments.
  • $300 million will fund the development of affordable housing units on Apple-owned properties across Silicon Valley
  • $150 million will serve as an investment in the Bay Area's housing fund.
  • $50 million will help fight homelessness throughout Silicon Valley

Inside California's housing affordability crisis

The state's housing affordability crisis led to a shortage of teachers. The challenge is especially prominent in the San Francisco Bay Area. In this part of Silicon Valley, housing prices are one of the highest in the nation.

Homelessness has affected California for decades. In 2005, a survey conducted by Los Angeles County reported more than 82,000 people as homeless. By 2019, the number dropped to 59,000.

Nearly half of Los Angeles residents pay almost 50 percent of their income on rent. Beginning teachers pay $2,000 to $3,000 for a one-bedroom apartment. The amount is equal to their monthly take-home pay.

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