Page 24 - AT

A24 technology
Tuesday 5 November 2019
Apple commits $2.5B to combat California housing crisis

By MATT O'BRIEN debated a similar proposal
AP Technology Writer but put it off amid opposi-
Apple on Monday said it tion from Apple.
will put up $2.5 billion to- "There's been talk of busi-
ward easing California's ness taxes for the whole re-
housing crisis. gion," said Cupertino May-
The sum from Apple eclips- or Steven Scharf. "I think
es pledges by fellow Silicon they're trying to get ahead
Valley giants Google and of that and realizing they're
Facebook for address- having a big impact on the
ing the lack of affordable housing situation."
housing in a region where Padovani, of UC Davis,
affluent tech workers have said Apple's investment
helped drive up the cost of targeting low-income and
homes. affordable housing is well
Apple's commitment Mon- placed, since most devel-
day includes a $1 billion opers have sought to build
statewide fund creating an homes at market rates. He
"open line of credit" for the said, however, that there
state to build new homes are still other challenges,
for households with low to such as local land-use re-
moderate incomes. Anoth- strictions and the geogra-
er $1 billion is a mortgage phy of the Bay Area, which
assistance fund for first-time In this June 3, 2019, file photo Apple CEO Tim Cook speaks at the Apple Worldwide Developers limits where homes can be
homebuyers. Conference in San Jose, Calif. built.
"It's a recognition that the Associated Press Faced with higher traffic
San Francisco Bay Area is policy and social initiatives, the state's nearly 40 million opment restrictions. gridlock and other head-
in a major housing crisis," said in a statement that the people. The Bay Area has been aches associated with
said David Shulman, a se- company worked closely One of Newsom's priorities swamped with highly paid hosting huge tech cam-
nior economist with the with experts to craft a plan has been identifying state- tech workers, leading to puses, some communities
Anderson Forecast at the "that confronts this chal- owned surplus land on bidding wars for the limited on the peninsula between
University of California, Los lenge on all fronts, from the which to build affordable supply of homes in cities San Francisco and San
Angeles. critical need to increase housing. Apple's $1 billion like Cupertino, where Ap- Jose have been resistant to
Shulman said it's a good housing supply, to support housing fund is designed to ple Inc. is headquartered. make room for new devel-
step but might not make for first-time homebuyers assist that effort by giving Voters in nearby Mountain opment.
much difference if it's just and young families, to es- the state a cheaper source View, home to Google, Shulman, of UCLA, said "you
creating "cheap financ- sential philanthropy to as- of credit. passed a per-employee need a major relaxation of
ing" for development and sist those at greatest risk." The state has also enacted business tax last year to get zoning on the peninsula
down payment relief for Google and Facebook this new laws aimed at boost- companies to help ease and that's going to be dif-
people who earn enough year each promised $1 bil- ing funding for affordable the strain on traffic and ficult to do given the local
to be able to buy a home lion to help address high housing and easing devel- housing. Cupertino had opposition to density."q
in the expensive region. housing costs. It's probably
The company's promise not just philanthropic sen- Fitbit buy is Google’s latest step into gadgetry
also includes $300 million timent that's guiding the
to make Apple-owned tech companies' efforts, By RACHEL LERMAN
land in San Jose available said Andrew Padovani, an AP Technology Writer
for affordable housing — a economist at the University Google's acquisition of
strategy that Shulman said of California, Davis, who wearable pioneer Fitbit
is more effective because says the high housing costs may be a bold plunge into
sky-high land prices are are making the region a health and fitness technol-
at the root of the housing less desirable place to live. ogy. But it's also just the
crisis. Apple's roughly 40- "They're really starting to latest step in the internet
acre (16-hectare) San Jose feel the effects of this," he giant's often-halting effort
property is expected to be said. "Trying to hire work- to become a force in con-
able to accommodate ers for their campuses in sumer hardware.
about 3,600 new housing the Bay Area is becoming Once a pure software com-
units. more expensive. They have pany known for its search In this Aug. 16, 2018, file photo, the Fitbit Charge 3 fitness trackers
"If they make the land to pay workers enough to engine, apps like Gmail are displayed in New York.
available for free or very live in the area." and its Android software for Associated Press
cheap, then you can do Gov. Gavin Newsom on smartphones, Google has Pixel phone, a Nest speaker that made Fitbit famous
something," Shulman said. Monday called Apple's for the last several years and wireless earbuds. But are just one more avenue
Apple is also investing in pledge an "unparalleled been building out its own its gadget sales are still mi- for Google to forge a pres-
a $150 million partnership financial commitment to suite of hardware products. nuscule compared to rivals ence in people's lives.
with a Bay Area nonprofit affordable housing," add- These include its niche Pixel Apple and Samsung. Google has previously tried
to support new affordable ing he hopes other com- smartphones and a vari- That doesn't necessarily and failed to build a busi-
housing projects with long- panies follow its lead. The ety of smart gadgets from matter much to Google, ness in health technology,
term forgivable loans and Democratic governor has speakers to thermostats to which sees hardware most- and its Wear OS software
grants; and $50 million to urged tech companies to Wi-Fi routers, all recently ly as a way to get people offers fitness tracking and
address homelessness in pitch in to ease a crisis in rebranded as "Nest" prod- hooked on its software and AI for smartwatches made
the region. which there are far fewer ucts. Last month, the com- artificial-intelligence ser- by other companies. But it
Lisa Jackson, Apple's vice homes and apartments pany announced a slate of vices. Health and fitness doesn't have its own brand-
president of environment, than needed to house new products including a wearables like the ones ed fitness wearable.q