A Program that Builds Savings Just by Paying Rent on Time

Between rent, utilities, groceries, transportation, and other everyday expenses, many Chicagoans are focused on getting through the month. Nearly half of Chicago renters spend more than thirty percent of their income on rent, making it difficult to save for emergencies, major expenses, or long-term goals. But what if paying your rent on time could also help you build savings, strengthen your credit, and move closer to goals like buying a home, going back to school, or starting a business? That is the idea behind Build Your Nest, an innovative pilot program from Preservation of Affordable Housing (POAH) supported by The Chicago Community Trust. Designed for residents living in Low Income Housing Tax Credit (LIHTC) properties, the program rewards the financial discipline residents are already demonstrating every month through on-time rent payments while providing access to financial coaching and opportunities to build savings.

Residents at three POAH multifamily properties in Chicago can build up to $1,200 in annual savings, plus a $250 starting seed deposit, by making on-time rent payments and participating in financial coaching through Compass Working Capital. “What makes the program different is its simplicity,” said Stephanie Pickett, who leads the Build Your Nest program at POAH. “Instead of asking residents to jump through hoops to participate, Build Your Nest starts by putting money in their account and rewarding actions they are already taking.” Eligible households are automatically enrolled and can start saving immediately toward goals that are meaningful to them.

Only a year into a three-year pilot, the program has enrolled 150 households, with participants collectively saving more than $95,000. Seventy-five percent of households have maintained on-time rent payments, while dozens of participants have established or improved their credit. Fifteen participants have already moved from sub-prime to prime credit status, a milestone that could one day help make homeownership possible. As the pilot has progressed, POAH has seen participants become more intentional about their financial goals, building savings, strengthening credit, and gaining confidence in their ability to plan for the future.

One of those participants is Mr. Fox. He first learned about Build Your Nest through postings in his building and encouragement from staff. He enrolled with a few goals in mind: saving money, getting ahead on rent, taking a small vacation, and creating his own turkey burger business. For Mr. Fox, the financial coaching has been just as valuable as the savings incentives. “They have a lot of platforms and tools to point you in the right direction to get help with credit, money tips, savings,” he said. His advice for others is simple: be patient and trust the process. “Just like everything else in life, this too is a process, but if you stick with it, you will reap the benefits.” The program is ultimately about helping residents build the financial foundation to pursue the future they envision for themselves. Whether that future includes a specific goal or greater peace of mind.

As the program enters its second year, its lessons are helping shape new approaches to connecting housing stability with long-term economic opportunities. Just as importantly, residents like Mr. Fox demonstrate what is possible when Chicago families have the tools and support to pursue their goals, build financial security, and invest in their futures.