I am very excited to share a recent milestone development for The Promise Homes Company (TPHC) and the communities we serve.
This is a first-of-its-kind CRA (Community Reinvestment Act) qualified investment type, which significantly expands and deepens the capital stack available to growth companies in this space.
This investment will be used to expand TPHC’s portfolio of minority-led single-family residential rentals in the affordable housing space.
First Republic Bank’s shared belief in the innovative approach of TPHC will make it possible now for more working-class families to access affordable quality housing, which comes with the added benefits of free financial literacy, guidance, and assistance.
The expanded portfolio will also increase job opportunities for the growing minority owned and operated businesses that provide service and maintenance for TPHC.
Currently, more than 60% of all Promise Homes Company vendors are minority-owned and women-owned companies. This is but one example of the Promise Homes difference.
This first-ever investment by First Republic Bank is a shining example of the ‘doing well by doing good’ ethos in practice. In addition to this investment expanding the use and innovative allocation of CRA capital by FDIC-insured banks, this transaction also serves as ‘proof of concept’ for the Promise Homes Company business itself.
A little more than three years after start-up, Promise Homes Company now has more than $125 million in assets and growing.
And while this investment is a first of its kind, we encourage other financial institutions to follow its lead. Please find the full press release here.
If you would like more insight into what we are up to at Promise Homes, please do not hesitate to contact our Vice President, Investments Megan McNulty at 703-740-6652 or our Vice President,
Operations Jackie Williams at 612-600-5663.
Link to the full Promise Homes Equity Investment Press Release here.
Here is a link to the recent Wall Street Journal profile on how The Promise Homes Company is providing a model also for the future of residential real estate. This includes 1) financial counseling and financial coaching for residents, to 2) active contracts and living wage job support for minority and women owned small businesses, to 3) opportunities from residents renting, to residents learning and giving opportunities to own.
John Hope Bryant, entrepreneur and founder, Bryant Group Ventures and The Promise Homes Company.