A vast majority of residents participating in a partnership between affordable housing developer Jonathan Rose Cos. and financial tech company Esusu improved their credit scores, according to the companies.
Data from the two-year collaboration shows that 95% of residents saw a positive credit impact.
The two companies launched their partnership with residents from four low-income housing tax credit (LIHTC) properties centered in Harlem, New York, and Stamford, Connecticut. The partnership enabled Jonathan Rose’s Harlem and Stamford residents to have their rental data reported to the three major credit bureaus (Equifax, Experian, and TransUnion) in order to build credit. Residents were also able to access Esusu’s rent relief fund throughout the pandemic, enabling dozens of residents to navigate financial shock and stay current with their rental payments.
Jonathan Rose Cos. recently expanded this partnership to include its full portfolio of 80 properties and 12,500-plus units across 11 states. To aid its efforts to scale rent reporting, the firm is amongst the first to leverage Freddie Mac's recently announced rent reporting initiative for multifamily borrowers, which provides benefits for borrowers implementing Esusu's technology at scale.
In addition to helping renters establish new credit scores, the firms saw:
· A 10% reduction in poor credit scores;
· A 10% increase in the percentage of residents with excellent credit;
· 95% of residents improve their credit scores; and
· 21 residents receive rent relief funding
“Our mission is to develop ‘communities of opportunity,’ communities in which every resident has equal access to opportunity, environmental quality, health, and well-being,” said Jonathan F.P. Rose, CEO of Jonathan Rose Cos. “Esusu’s program made a palpable difference in our residents’ opportunity by helping them improve their credit scores. We are eager to expand this offering across our entire portfolio.”