Assessing a Financial Capability Model for Program Delivery of HUD’s Family Self-Sufficiency Program: The Experience of Compass Working Capital in the Field

Reid Cramer
George Reuter
Compass Working Capital

This article describes a unique model for administering and implementing the Family Self-Sufficiency (FSS) program developed by the mission-driven nonprofit organization, Compass Working Capital (“Compass”). Guided by a theory of change that emphasizes asset building and strengthening personal financial practices, Compass has partnered with select public housing authorities and multifamily affordable housing providers to deliver a version of the FSS program that includes access to a personal financial coach for each participant. Since 2010, Compass has been the primary administrator of FSS for more than 5,000 households receiving federal rental housing assistance, and these families have collectively accumulated more than $19,000,000 in FSS escrow savings accounts. Program performance measures—such as enrollment, retention, and graduation rates—and participant outcome indicators, as reflected by changes in earned income, escrowed savings, credit scores, and homeownership, reveal the promise and potential of Compass’ financial capability model for the FSS program. Although researchers have more to learn about how and why the Compass Model works, these findings add to a growing body of evidence that well-run FSS programs focusing on asset building and financial capability can support families to build savings, reach their financial goals, and become more financially secure.