The Promise Homes Company, one of the largest minority-controlled, institutional-quality owners of single-family residential rental property in the U.S., announced today that it has closed on two refinancings from Freddie Mac Multifamily totaling $25.7 million, which covers 308 single-family homes in the Atlanta metro area and Central Florida. The homes were acquired in separate transactions from institutional owners of single-family homes in 2018.
Promise Homes was one of the recipients chosen to qualify for financing through Freddie Macs $1.3 billion affordable single-family rental pilot program, which ended in 2018. This distinction further establishes Promise Homes as an institutional-grade manager of high-quality, single-family homes with a unique resident engagement program. Freddie Mac recently cited Promise Homes as a unique and compelling partner in its single family rental market overview whitepaper (published December 2018) for both its asset management and its innovative financial literacy programming available to all residents.
Since its launch in Summer 2017, Promise Homes has built its portfolio of single-family rental homes to now include more than 650 homes across metro Atlanta as well as northern and central Florida. As part of the companys innovative business model, current and future Promise Homes residents have access to free financial literacy and economic support services through Promise Homes contract with Operation HOPEthe leading non-profit, global provider of financial dignity education and economic empowerment programs.
These two refinancings demonstrate Promise Homes˜ ability to secure attractive, long-term financing from leading and like-minded institutions that are dedicated to providing affordable financing to middle-income, working class residents. We take great pride in working with Freddie Mac and its servicing providers, and Promise Homes remains committed to working with every lender that shares this vision, said John Hope Bryant, Chief Executive Officer of Promise Homes. As we continue to scale the size of our business, we look forward to working with additional lenders in order to meet the broad needs of our varied constituents — including families who deserve a path to homeownership, our local, small business vendor partners looking to build their reach, communities seeking to stabilize their middle class, as well as our investors.”
Of the 308 properties in these two recent acquisitions, more than 95% qualify as affordable housing, based on 80% of the area median income. In addition, more than 30% have been rented to residents with Section 8 vouchers. The homes are located primarily in DeKalb, Clayton and Fulton counties in Georgia as well as Tallahassee, Florida.
About Promise Homes
Launched in May 2017, the Promise Homes Company is one of the largest minority-controlled owners 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 is led by Chief Executive Officer 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.
About Freddie Mac
Freddie Mac Multifamily is the nations multifamily housing finance leader. Historically, nearly 90 percent of the eligible rental homes that Freddie Mac funds are affordable to families with low to moderate incomes.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since its creation by Congress in 1970, Freddie Mac has made housing more accessible and affordable for homebuyers and renters in communities nationwide. Freddie Mac is building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Macs blog FreddieMac.com/blog.