Abt, HUD To Study Strategies for Building Financial Stability

The U.S. Department of Housing and Urban Development has contracted Abt Associates to study two different strategies for helping households that receive HUD assistance. Through the Moving to Work Expansion Asset Building Cohort, Abt will analyze the effects of two asset-building strategies on financial and housing stability. The study will help HUD build evidence about whether housing can serve as an effective platform for financial empowerment.

Abt will evaluate two asset-building programs under the $3.7 million contract:

The Opt-Out Savings Account Program: Public housing authorities (PHAs) will make monthly deposits into an escrow or personal savings account for public housing and Housing Choice Voucher (HCV) participants over a two-year period. The goal is to increase the number of households with a bank account and enough savings to meet small financial emergencies. Some participating PHAs will partner with organizations to provide financial education and coaching, tailored banking resources, and other services.

  The Rent Reporting Program: PHAs will report the rent payments of participating public housing households to credit bureaus for at least 24 months to help those households build credit. Typically, rent payments are not reported, so the goal will be to improve participants’ access to credit.

“Different families will benefit from different supports to establish financial wellbeing, and housing stability can be a vital part of that process,” says Eduardo Castellon, Abt’s Vice President of Housing and Asset Building. “We look forward to helping HUD and participating PHAs to determine what works best for their communities.”