Housing Trust Silicon Valley – a nonprofit community loan fund that works to create a strong affordable housing market in the greater Bay Area – is launching the Apple Affordable Housing Fund, funded by an US$150 million grant to Housing Trust with the goal of building more affordable housing in the greater Bay Area.
The Apple Affordable Housing Fund is part of the comprehensive $2.5 billion commitment Apple made in November 2019 to help address the housing availability and affordability crisis in California. Housing Trust will make loans to qualified developers to access these funds for projects that need “unique and flexible capital” to move into the construction phase. Developers are encouraged to submit a request for proposal on Housing Trust’s web site before the deadline of March 24.
“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,” CEO Tim Cook said in a press release last November. “Affordable housing means stability and dignity, opportunity and pride. 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.”
He added that Apple designed its initiative to: accelerate and expand new housing production; jump-start long-term developments that would otherwise not be possible; help first-time buyers purchase homes; and support new housing and programs to reduce homelessness, after extensively studying the issue and listening to different perspectives.
Apple’s commitment to the state of California includes:
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$1 billion affordable housing investment fund, which will provide the state and others with an open line of credit to develop and build additional new, very low- to moderate-income housing faster and at a lower cost.
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$1 billion first-time homebuyer mortgage assistance fund: Working with the state, this first-time homebuyer fund will provide aspiring homebuyers with financing and down payment assistance. Apple and the state will explore strategies to increase access to first-time homeownership opportunities for essential service personnel, school employees and veterans.
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$300 million Apple-owned land will be available for affordable housing: Apple intends to make available land it owns in San Jose worth approximately $300 million for the development of new affordable housing.
The funding commitment to California is expected to take approximately 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.
“This is exactly what we mean when we talk about creating bolder measures and greater equity in the region,” said Kevin Zwick, CEO of Housing Trust Silicon Valley, in a press release. “This grant creates opportunities to do what couldn’t be done otherwise, and we’re excited by the impact this fund will have.”
Developers are encouraged to review the threshold and preference criteria on the Housing Trust website and submit their most compelling proposals. The Apple Affordable Housing Fund will support a mix of incomes, from individuals and families at the lowest level incomes up to the “missing middle” – and all affordable homes developed will have long-term affordability restrictions, says Zwick. Additionally, the Apple Affordable Housing Fund is encouraging transit-oriented projects that incorporate sustainable methods, efficient use of resources and aspects that support resident and community equity. For more information and to submit an RFP please go to https://housingtrustsv.org/applefundrfp/.
