The innovative Family Self-Sufficiency (FSS) program in Chicago is transforming how families in subsidized housing build financial security, creating pathways to economic mobility that were previously out of reach for many residents.
For Chicago Housing Authority (CHA) resident Maria Gonzalez, the program has been life-changing. “I never thought I could save enough for a down payment on a home,” she explains. “But after three years in the program, I’ve built over $8,000 in savings without changing my budget.”
The FSS initiative, a partnership between the Chicago Housing Authority and Compass Working Capital, allows participants in federally subsidized housing to convert a portion of their rent payments into personal savings. The mechanism is elegantly simple: as participants increase their income, the additional rent they would normally pay is instead directed into an interest-bearing escrow account they can access upon program completion.
“This program fundamentally rethinks how subsidized housing can work,” explains Darlene Duarte, regional director at Compass Working Capital. “Instead of penalizing residents when their income rises by immediately raising their rent, we use that increase to help them build assets.”
Participants typically remain in the program for five years, during which they work with financial coaches to develop personalized economic goals, improve credit scores, reduce debt, and increase savings. The results have been remarkable – Chicago’s program has seen average escrow accumulations exceeding $6,500 per family, with some participants saving more than $15,000.
What makes this approach particularly effective is how it addresses a core challenge in traditional subsidized housing models. Under standard regulations, residents in public housing or using housing vouchers pay approximately 30% of their income toward rent. When their earnings increase, so does their rent – creating what some economists call a “poverty trap” that can disincentivize income growth.
The Chicago program flips this dynamic by turning potential rent increases into future wealth. “We’re essentially converting what would be a benefit cliff into a savings cliff,” notes James Williams, CHA’s Director of Resident Services. “Participants still have affordable housing while they build financial security.”
Recent data from the Urban Institute shows FSS participants are 52% more likely to be employed and experience average credit score increases of 23 points compared to similar residents not in the program. These improvements extend beyond finances – participants report reduced stress, increased confidence, and greater optimism about their economic futures.
Tamika Johnson, who joined the program in 2022, shares how the program changed her perspective: “Before FSS, I was afraid to make more money because my rent would go up. Now I’m actively seeking promotions because I know that money is going toward my future.”
The program’s success has attracted attention from housing authorities nationwide. Originally established by federal legislation in 1990, the FSS initiative has evolved significantly through partnerships with organizations like Compass Working Capital, which brings specialized financial coaching expertise.
“What makes Chicago’s implementation special is the emphasis on both asset-building and financial capability,” explains Teresa Cordova, director of the Great Cities Institute at UIC. “They’re not just helping families save money; they’re equipping them with financial skills that have generational impact.”
The program recently expanded to include more Chicago neighborhoods, with plans to reach an additional 500 families by 2026. Funding comes from a combination of federal grants, philanthropic support, and CHA resources. Notably, research indicates the program may actually save public money long-term by reducing dependence on other forms of assistance.
For families like the Williamses, who recently graduated from the program and used their savings for college expenses, the impact extends far beyond the financial benefits. “This program gave us hope during difficult times,” says Robert Williams. “Now our children see what’s possible when you have a financial plan.”
As Chicago faces continuing affordable housing challenges, innovative approaches like the FSS program demonstrate how creative policy thinking can transform existing systems to better serve residents’ needs.
“The beauty of this program is that it acknowledges that housing stability alone isn’t enough,” says Duarte. “True economic mobility requires assets, skills, and confidence – and that’s exactly what we’re helping families build.”
Residents interested in learning more about the program can contact the Chicago Housing Authority’s Resident Services department or visit Compass Working Capital’s website for upcoming information sessions.
