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Project Details


UMH Properties Inc. Sustainable Finance Framework Second-Party Opinion (2023)


UMH Properties Inc.

Project Type

Sustainability Bond/Loan

Industry Group

Real Estate

Use of Proceeds

Affordable housing; Access to essential services; Water/waste water management; Energy efficiency;



Evaluation Date

Apr 2023

Evaluation Summary

Sustainalytics is of the opinion that the UMH Properties Inc. Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:   


The eligible categories for the use of proceeds – Affordable Housing, Access to Essential Services, Sustainable Water and Wastewater Management, Energy Efficiency and Renewable Energy – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 8 and 11.   


UMH Properties Inc.’s Sustainable Finance Committee, comprising of its Director of ESG and an independent board member, along with its legal and management teams, will oversee the identification and selection of the eligible projects. UMH has adopted internal processes to address environmental and social risks commonly associated with the financed projects. This is in line with market practice.   


UMH’s Properties Inc.’s Sustainable Finance Committee will be responsible for the management and tracking of bond proceeds. UMH intends to achieve full allocation of bond proceeds within 36 months of each issuance. Unallocated proceeds may be temporarily used to refinance existing debt and preferred stocks or invested per UMH Properties Inc.’s cash investment policy. This is in line with market practice.   


UMH intends to report on the allocation of proceeds until full allocation as part of its annual ESG reports published on its website. The allocation reporting will include details on the allocation of proceeds, and the balance of unallocated proceeds. In addition, UMH Properties Inc. intends to report on qualitative and quantitative impacts and has provided indicative metrics in the Framework. Sustainalytics views UMH’s allocation and impact reporting as aligned with market practice.