The Promise Homes Company Secures Credit Facility from Leading Global Money Center Bank
The Promise Homes Company, one of the largest minority-led managers of institutional-quality, single-family residential rental homes in the United States, announced today that it has closed on a revolving credit facility from a leading global money-center bank. This transaction demonstrates the growing commitment by traditional banks to provide impact-focused capital to the single-family rental (SFR) space and especially to managers like Promise Homes, which is focused on providing affordable, quality homes and a differentiated model of resident empowerment that provides homeownership opportunities through financial education and incentive offerings to its middle- and working-class residents across the country.
The facility will refinance Promise Homes' SFR portfolio of approximately 630 homes and will provide additional capital for the company to pursue its growth strategy. The majority of the homes in the portfolio are located in low- or moderate-income (LMI) communities, and nearly all of the homes are affordable to LMI households. The facility includes attractive terms to support the Promise Homes mission.
"We appreciate how these sophisticated bankers took the time and made the effort to really understand our business and underwrite this groundbreaking, impact-focused facility in recognition of Promise Homes' dual objectives?to provide affordable, quality homes in LMI communities with pathways to homeownership through free financial literacy education and credit counseling for residents as well as to run a quality business that is a reliable partner to the community and its stakeholders," said John Hope Bryant, Founder and Chairman of Promise Homes.
"This new financing facility will provide Promise Homes with additional capital at competitive terms as well as more time to continue to both implement the upgrades we have made in our resident engagement and minority vendor programs as well as to bring our property management function in-house to better support our residents," said Jake Keating, Senior Vice President and Head of Strategy & Investments at Promise Homes.
Promise Homes has established a reimagined model of single-family rental management with impact. The company provides residents across its 630-home portfolio with free financial literacy education and credit counseling through its partnership with Operation HOPE as well as unique financial incentives and programs to help residents pay rent, build credit and obtain mortgage commitments to transition from renters to homeowners. All Promise Homes residents who have enrolled in financial or credit counseling through Operation HOPE have improved their credit scores within 90 days of beginning the program, and as a result, receive rent credits through Promise Homes' incentive program. Additionally, Promise Homes is committed to supporting local, minority- and women-owned businesses through its landmark Minority Vendor Program, which seeks to contract the majority of the company's repair, turn, and maintenance jobs to minority- and women-owned businesses through the program.
About The Promise Homes Company
Launched in May 2017, The Promise Homes Company is one of the largest minority-led managers of institutional-quality, single-family residential rental property in the United States, with a focus on working class and middle-class communities. Promise Homes offers its residents quality housing at affordable prices as well as financial empowerment and assistance that would position them financially to eventually own a home. Promise Homes also contracts with local, minority-owned businesses for property maintenance services, thereby creating local, sustainable jobs in the communities where it invests. Promise Homes was founded by John Hope Bryant, an entrepreneur, author, philanthropist, and prominent thought leader on financial inclusion, economic empowerment and financial dignity. For more information, please visit http://www.thepromisehomescompany.com.
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