The income of the poor and their
ability to generate wealth is not keeping pace with the increasing cost
of adequate, affordable, housing across the country. However, there
is increasing evidence that providing low-income people with the right
mix of financial and training incentives is a means of facilitating their
entry into the mainstream housing and rental markets.
SEDI's Independent Living Account,
or , project
could provide the necessary mix of financial incentives and services needed
to increase the self-sufficiency of people living in transitional housing.
Community consultations conducted by SEDI have confirmed that low-income
consumers and community housing practitioners agree that a project like
can help
integrate low-income Canadians into the mainstream housing and rental
market. SEDI's research has also confirmed that the IDA methodology
could be used to assist individuals and families in transitional or supportive
housing to gain access to appropriate and affordable private market rental
housing. Therefore, a formalized demonstration project aimed at
assisting this population access private rental accommodation has been
underway.
Enrolment in an ILA project allowed
participants to save for first and last months rent in a supportive environment.
Anecdotal evidence from project participants has demonstrated that
by participating in a financial management-training course one successfully
increases savings rates. When a participant's personal savings
goals are attained then not only does he or she acquire financial assets,
but also receives related personal benefits including greater confidence
and participation in the economic mainstream.
SEDI commended the administration
of the project
in September 2004 with funding from the National Secretariat on Homelessness.
The newly released July 2006 final report for the highlights
crucial findings from the pilot project. Some highlights include:
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Those living under financially
constrained circumstance CAN and DO save when presented with the right
incentives and supports.
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An ILA project is more likely
to be successful when the community partner agency is a transitional
housing provider.
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The matched savings component
is central to the marketing of the ILA and is a key feature to assisting
with savings towards first and last months rent.
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The Facilitator's method
of presenting the Financial Capability Training contributes to the
success of a participant within this project.
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The ILA must incorporate
a flexible savings period and cash-out time frame that is aligned
with the needs and life circumstances of project participants.
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ILA project partnerships
are a significant variable in assisting with the successes of participants.
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Additional information may
be required to fully assess the efficacy of this approach.
Click here
to access the final
report. For more information on please
visit the Resources, and then Publications, part of the SEDI website.
For further information on the Project
contact Barbara Gosse
at bgosse@sedi.org .
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