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:

1. Those living under financially constrained circumstance CAN and DO save when presented with the right incentives and supports.

2. An ILA project is more likely to be successful when the community partner agency is a transitional housing provider.

3. 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.

4. The Facilitator's method of presenting the Financial Capability Training contributes to the success of a participant within this project.

5. 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.

6. ILA project partnerships are a significant variable in assisting with the successes of participants.

7. 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 .