City National Bank Finances First Promise Homes Company Acquisition
The Promise Homes
Homeownership
Financial Counseling
Underserved Communities
The Promise Homes Company, founded and backed by entrepreneur and philanthropic leader John Hope Bryant, with strategic backing from successful businessmen Tony Ressler and Michael Arougheti, was likewise launched in June, 2017, with a goal of proving a new and innovative business model: doing well and doing good too.
The Promise Homes model treats its tenants as residents and partners, its maintenance vendor work as unique opportunities to create local jobs and contract opportunities in underserved and working middle class communities, and ultimately provides residents both with an opportunity to advance their financial wellness, and to potentially become future homeowners as well of a Promise Homes single family residential property.
One of the unique resident empowerment programs include help for residents to get free credit and financial counseling. Those that successfully complete the HOPE-Promise Homes 700 Credit Score Communities Program will be rewarded with a 10% reduction of rent. Rent reductions remain in place as long as residents maintain a consistent credit score of 700 or better.
The Promise Homes Company is well capitalized, with approximately $130 million in committed resources, but its innovative approach to the residential rental real estate space required an open mind and full commitment. City National Bank’s leadership team offered both. And given that the majority of the portfolios that Promise Homes will be acquiring are in under resourced communities, it could also be said that the bank was doing a service worthy of the federal Community Reinvestment Act (CRA).
“Those that successfully complete the HOPE-Promise Homes 700 Credit Score Communities Program will be rewarded with a 10% reduction of rent.”
The Promise Homes Company is the largest minority controlled, institutional quality owner of rental single family residential properties in the nation. Its initial investments — inclusive of Project Promise #1 — are and will be in Atlanta, with plans to expand nationally.
The Promise Homes Company is managed day to day by Jason Stewart, COO and CIO.
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