IDA Housing programme

Summary of the project Individual saving programme for low-income non-bankable people – amongst them Roma and young grown-ups of state care institutions. The goal of the savings is to improve the housing situation of the clients. The savings of the clients will be matched with a grant (based on IDA methodology). Clients are also eligible to take a loan to achieve their asset goals. Counselling and family care, practical financial training, as well as technical advice and support for the renovations with special attention to energy saving solutions are provided for the participants in the project. Local governments are to be partner and share the  risk  of the loan capital given away in the settlements.

Results or expected results:

Significant improvement in the living conditions and increased awareness and understanding of financial issues to stabilize household budgets of low-income clients and prevent dependence from usurers.

The objective of the program is to implement a program which

• follows the IDA (Individual Development Account) methodology. Applicants will have clear and obtainable asset goals (regarding the improvement of their housing conditions) and a feasible financial plan to reach it (with the help of financial education and counseling);
• helps participants improve their housing conditions with matching fund, budget-planning, pre-saving and a loan product provided by Mikrohitel P.L.C. as a part of the program;

Expected results of the program

• 100 beneficiaries reach their asset goal
• 100 houses are renovated / renewed
• participants' housing conditions are improved significantly
• participants' financial skills and ownership skills are developed

Complementary project goal is to adapt the CAF methodology studied in Barcelona, Spain

• Writing and publishing a study on the methodology
• Translating and adapting the program documentation
• Seting up three CAF groups in Hungary

The overall objectives of the program are:

 1. To ensure that

• socially underprivileged beneficiaries of the program reach their prime asset goals,
• gain understanding and confidence in managing their household budget and keeping it stable,
• participants will stay away from using usury and financial services unfavorable for them
• through these experiences participants will see better perspectives also in other aspects of their lives.

2. To design and pilot a model of social intervention which could be developed into an efficient social policy methodology, that could be promoted to get government or EU funding to be scaled-up and adopted on national level.

Accomplishments in 2010

• 293 persons applied for the participation in the program
• Technical assesment has been done in 250 houses by Habitat for Humanity, Hungary
• 171 contracts have been signed with the participants
• 51 participants are sucesfully completing their regular savings
• Financial education training curriculum has been prepared and modified to tailor to the needs of the participants
• The program is running in 14 settlements
• Individual financial consultancy started to tackle with the serious debt trap of the participants
• Paper has been published on CAF methodology on Autonomia’s web-site and is in print in the Hungarian Journal of Sociology (Esély) (planned date is February 2011)
• One CAF group has been established with Roma members

Indigo meeting in Paris (it was moderated by Tibor Beres because the planned moderator could not participate).