HARLEM, N.Y., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Esusu, the leading financial technology company revolutionizing rent reporting and data solutions for credit building, announces impressive impact from California Senate SB 1157. The latest data encompasses over 23,972 rental units, creating approximately 3,000 new credit scores for previously credit-invisible renters. This legislation has enabled the deployment of $785,405 in eviction prevention rent relief to 374 households.
In the United States, over 45 million people lack credit or possess insufficient credit profiles, with renters, immigrants, and minorities comprising a significant majority of this group. Senate Bill 1157 was specifically designed to assist lower-income individuals residing in affordable housing by enabling them to establish or build credit scores through rent reporting including up to two years of historic on-time payments. The bill mandates that landlords of more than 15 affordable (subsidized) dwelling units allow residents to report their rental payments to credit bureaus.
Since its inception in 2018, Esusu has empowered over a million renters to improve their credit scores by reporting on-time rent payments to credit bureaus. By integrating Esusu's comprehensive product suite, renters can access credit-building opportunities, financial literacy content, and essential resources such as rent relief funds. In California alone, on-time rent reporting through Esusu's initiative has facilitated access to 28,505 quality financial products by enhancing credit scores.
"We are honored to witness the transformative power of California's rent reporting legislation, a pivotal step towards bridging the racial wealth gap and empowering renters to unleash their financial potential," said Wemimo Abbey and Samir Goel, Co-Founders and Co-CEOs of Esusu. "By recognizing the value of rent payments as a credit-building tool, we have seen firsthand the positive impact of rent reporting on over 35,250 renters. This legislation has paved the way for individuals to access previously unattainable financial products, such as high-quality auto, home, and student loans. This milestone is just the beginning, and we remain committed to expanding access to financial tools, forging partnerships, and tirelessly working towards achieving greater financial equity for all."
Renters who have experienced credit score improvements due to their on-time rent payments reflected in their credit reports may also benefit from increased access to lines of credit with more favorable terms. Esusu analyzed an anonymized dataset and discovered the following positive outcomes for participating renters:
- An average credit score increase of 140 points
- Over $531 million in capital access created
- Over $313 million in mortgage loans received
- 3,802 auto loans, 502 mortgage loans, and 817 student loans accessed
- Deployment of $785,405 in rent relief, preventing 374 households from facing financial evictions
Senator Steven Bradford represents Los Angeles County and authored SB 1157 in 2020. Bradford commented on the significance of the legislation, stating, "This legislation, the first of its kind in the nation, addressed the longstanding inequities faced by renters in subsidized housing by allowing them to establish or improve their credit history by consistently paying their rent on time. I am grateful to see the positive impact of my legislation in helping those low-income Californians benefit by building their credit. A good credit score can help secure better interest rates, save consumers money, and ultimately achieve the American Dream of homeownership.”
“Langdon Park Capital is proud to partner with Esusu in our mission to create high-quality, affordable residential communities for hard working families across the US, including right here in Los Angeles,’’ said Malcolm Johnson, CEO of Langdon Park Capital. ‘’Since investing in our first apartment community in South LA in 2022, we have grown our relationship with Esusu to serve over 1,100 residents at our properties by providing positive rent reporting and rent relief payments for those who need it most. Over half of our participating residents have seen increases in their credit scores, with an average improvement of 35 points for residents who enroll in Esusu’s services.”
“Through Burbank Housing’s partnership with Esusu and their on-time rent payment reporting, the average credit score of individuals with established credit increased 49 points, bringing the average score for the more than 5,000 participating residents in Burbank Housing communities to nearly 700,’’ added Larry Florin, CEO and President of Burbank Housing. ‘’Good credit scores recognize the consistency and responsibleness of our residents, opening up new avenues of financial freedom for them and their families.”
“Avanath’s partnership with Esusu embodies the company’s commitment to innovation, resident empowerment, and sustainable affordable housing solutions,” said Wesley Wilson, Partner and Chief Financial Officer of Avanath. “The expansion of these services to all residents is a net gain for both residents and the industry.” Through this partnership, as of June 2023, 70% of Avanath residents have witnessed credit score improvements while being enrolled, with an average increase of 35 points.
In addition to credit-building opportunities, residents also have access to the Esusu Renters Marketplace, where they can access services and programs focused on financial support, financial literacy, and a repository of social services in their respective zip codes to help residents live their financial best.
About Esusu
Esusu is the leading financial technology platform that leverages data solutions to empower residents and improve property performance. Esusu's rent reporting platform captures rental payment data and reports it to credit bureaus to boost credit scores. This allows renters to build and establish their credit scores while helping property owners mitigate against initiating evictions, powered by differentiated data and insights. Founded in 2018, Esusu reaches over 4 million rental units across all 50 states in the United States. Learn more at www.esusurent.com and follow us on Instagram @myesusu and on Twitter @getesusu.
About Langdon Park Capital
Langdon Park Capital (LPC) is a real estate investment manager focused on creating lasting social impact in historically underserved Black and Latino communities, while generating strong returns for its investors. The firm combines institutional capital with the industry expertise and the lived experiences of its diverse leadership team to customize its investment approach based on each community’s specific needs. Headquartered in Los Angeles, LPC invests in affordable and workforce residential and mixed-use real estate properties in cities across the United States. To learn more about Langdon Park Capital, please visit www.langdonparkcapital.com.
About Burbank Housing
Burbank Housing is the North Bay’s leading affordable housing nonprofit. Since 1980, the organization has built, preserved, and managed safe, affordable rental and for-sale homes in the North Bay Area. It currently provides homes to over 8,700 people across more than 103 communities and has built over 1000 ownership homes. Burbank Housing also has more than 690 affordable housing units in its pre-development pipeline.
About Avanath Capital Management
Avanath Capital Management is a privately held, vertically integrated investment firm managing real estate and real estate-related investments generating risk-adjusted returns through current income and capital appreciation from its investments. The firm is a Registered Investment Adviser and provides property management services through Avanath Communities, Inc.
Founded by Daryl J. Carter, the firm is led by a management team that averages 25 years of experience and that has successfully guided investment funds in defining growth opportunities. Avanath professionals have real estate operating expertise and long-standing relationships with strong local, regional and national sponsors that can access investment opportunities aligned with Avanath's initiatives. More information is available at www.avanath.com.
Press Contact:
SGPR on behalf of Esusu
esusu@smallgirlspr.com
