Funding will go towards buying homes in major Midwest markets to address the public housing crisis and create economic mobility
PORTLAND, Maine, Dec. 7, 2023 /PRNewswire/ — Simply Homes, an automated Single Family Rental (SFR) sourcing and underwriting platform developed to help solve the affordable housing crisis by mobilizing stagnant housing stock for use in the Housing Choice Voucher (HCV) program, today announced $22M in funding for operations and real estate acquisitions. The financing is led by Gutter Capital and Watchung Capital, with participation from Village Global, Ambush Capital, RavenOne Ventures, Neil Parikh, Gabe Flateman, Luke Sherwin, and others.
Harvard University’s Joint Center for Housing Studies 2023 State of the Nation’s Housing report found record unaffordability, extreme housing shortages and an urgent need for both public and private investment to combat these issues, as the current shortage in affordable housing is estimated to be as large as 7 million homes. Simply Homes is addressing this by implementing its platform to optimize the acquisition, renovation, and leasing of otherwise stagnant housing stock and making it available to lower-income families. Over 80% of Simply Homes’ tenant base are single parents who would need to work 150 hours a week to afford market-rate rent on a home. Utilizing HUD’s HCV program through Simply Homes, these families are paying no more than 30% of their income to provide a safe, well-maintained home for their family.
The company is co-founded by CEO Brian Bagdasarian who brings two decades of experience in human process automation and machine learning, and previously was with HubSpot, having joined as part of the founding team of Motion.ai, and LogMeIn, where he led Digital Engagement Strategy, and CFO Robert Kavanagh, who, prior to Simply Homes, lead the acquisition of Ireland’s largest social housing portfolio, and previously spent 10 years as an investment banker at Jefferies and Cantor Fitzgerald in New York and London, specializing in infrastructure and ESG assets.
“When we buy into a neighborhood, we are investing in the community,” said Brian Bagdasarian, CEO and Founder of Simply Homes. “We offer renovated homes, not just as shelter, but as a foundation for family growth and economic stability to address America’s housing crisis. Children that are able to move into lower-poverty neighborhoods can see a 31% increase in lifetime earnings. We’re making those meaningful changes, one family at a time.”
After purchasing its first house in January of this year, Simply Homes closed on its 50th home in early November, and will have close to 100 units in its portfolio by year end. Through its Affordable Housing Vehicle, Simply Homes is investing millions of dollars to reinvigorate neighborhoods with its data-driven approach enabling rapid, effective deployment of capital across communities, all while working with the local residents to maintain a given community’s distinctiveness.
“Simply Homes is showing up to this time of crisis with a solution that could change the affordability of housing nationwide,” said James Gettinger, Managing Partner at Gutter Capital. “Housing is least affordable for those that have the highest need and lowest income, and starter homes are rarely built today, leaving few options for the people who need to secure housing the most. By renovating the aging housing stock, Simply Homes is poised to vastly increase the supply of affordable and section-8 homes available.”
Already active in Pittsburgh and Cleveland, Simply Homes is expanding into additional markets across the midwest in 2024, driving social and economic mobility in those areas by increasing the ability for those families most in need to achieve housing stability. The company is currently developing a series of AI-powered virtual analysts that rapidly interpret massive amounts of data that Simply Homes aggregates and leverages to make its acquisitions, further improving their ability to identify communities and individual properties where investment can lead to a positive next chapter for homes that need some love and families that need an opportunity.
“Simply Homes has developed an impressive technology platform to help unlock capital like ours for the betterment of underserved communities and families,” said Tom Stults, Managing Partner of Watchung Capital. “We believe our partnership with Simply is an exciting opportunity to do well by doing good.”
To learn more about Simply Homes, visit https://www.simplyhomes.com.
About Simply Homes
Simply Homes is an automated SFR sourcing and underwriting platform addressing the affordable housing crisis by mobilizing stagnant housing stock. Simply Homes leverages its proprietary ML and AI-powered automated sourcing and underwriting platform to identify, value, and acquire stagnant housing stock and make them available for their next family—primarily those eligible for HUD’s Housing Choice Voucher program.
SOURCE Simply Homes
Originally published at https://www.prnewswire.com/news-releases/simply-homes-secures-22m-to-expand-us-affordable-housing-302008860.html
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