Apple backs $50 million fund to support Bay Area affordable housing

(Reuters) - Apple is partnering with the philanthropic arm of real estate firm Sobrato and two other California-based groups to launch a fund with an initial investment of $50 million to support affordable housing projects in the San Francisco Bay Area.

The Bay Area Housing Innovation Fund is part of Apple's 2019 pledge to contribute $2.5 billion towards affordable housing across California, the iPhone maker said on Wednesday.

The growth of the tech sector on the American West Coast, chiefly in California, has led to a significant increase in housing prices and strain on residents.

Many tech workers have either moved or are considering moving to other states and work remotely, while demanding the tech industry to intervene in the housing crisis.

The fund — for which Apple is teaming up with Sobrato Philanthropies, San Francisco Housing Accelerator Fund and Destination: Home — will make targeted, favorable loans to advance affordable housing development.

It will initially support four projects in the greater San Francisco Bay Area, creating more than 400 homes within the next two years.

Including its latest effort, Apple has allocated more than $1.6 billion toward affordable housing initiatives in the state, directly benefiting over 60,000 Californians, the tech giant said.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Shilpi Majumdar)