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Under the program announced last week by Compass Working Capital
and Preservation of Affordable Housing, eligible residents at
the three POAH properties will be enrolled automatically and
receive a $250 seed deposit.
Residents earn a $50 deposit into a savings account each time
they pay rent on time, and they can earn an extra $400 by opting
into financial coaching with Compass.
Julianna Stuart-Lomax, vice president of community impact at the
nonprofit Preservation of Affordable Housing, said the program
is paid for through private donations and not by taxpayers.
“We received very generous funding from the Chicago Community
Trust to launch this pilot, and we’re working on securing
additional funding from other philanthropy,” Stuart-Lomax told
The Center Square.
Stuart-Lomax said the group is focused on efficiency to scale
leveraging for different sources of public or private dollars so
families can improve their credit and reach their goals.
“They’re working, they’re renting, they’re paying that rent each
month, but they’re still living on a really thin margin,”
Stuart-Lomax said, adding that income has not kept up with
inflation.
Compass chief program officer Moriah Garcia Nelson said asset
poverty is an overlooked crisis for low-income families.
“Our current anti-poverty system often penalizes families with
low incomes for having savings, or it prevents them from
building it,” Garcia Nelson said.
Stuart-Lomax said Build Your Nest is designed to support the
financial health of both the residents and the properties.
“We’re trying to use the levers that we have available without
adding additional burden on taxpayers,” Stuart-Lomax said.
The pilot program is starting in Chicago but could expand.
“We’re designing this program in a way that we think is
transferable to similar communities across Illinois and
nationally,” Stuart-Lomax said.
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