What we know:
Safe, affordable, stable housing is essential for optimal human and community development—without stable housing it is nearly impossible to achieve good health, successful educational outcomes, and reach individual or family economic potential. Presently, over 25% of residents in the City of Richmond are living on an income below the poverty level,16 putting them at greater risk for becoming homeless. The lack of stable housing often leads to costly cycling through crisis-driven systems like foster care, emergency room usage, psychiatric hospital care, emergency domestic violence shelters, substance 17 abuse centers, and jails. Many communities, nationwide, have adopted “Rapid Rehousing” models, which view obtaining housing as a critical first step in assisting individuals and families. Rapid Rehousing models are considered a more proactive, effective and permanent resolution to chronic homelessness when compared to emergency shelters.18 The Community Foundation supports a range of activities and evidence-based programs designed to increase community economic vibrancy, including effective workforce development and financial literacy programs. Workforce development and training programs, such as Jobs-Plus Community Revitalization Initiative, piloted by the Department of Housing and Urban Development, equip workers with extensive supports and financial incentives at convenient job 19 centers, often located in public housing developments. Studies show that effective jobs programs can both create local employment and improve business productivity for small and medium-sized businesses by reducing barriers to 20 information, expertise, and financing needed services. Evidence suggests that financial illiteracy is most prevalent among consumers with lower income and education levels, minorities, and women, creating a disproportionate subpopulation who are “unbanked” or without a financial transaction account.21 Research in the area of financial education programs suggests that “onesize-fits-all” educational programs may not be sufficient to influence financial behaviors. Rather, programs designed to work with participants in developing individualized tools for personalized money management are the most effective predictors of behaviors leading to increased financial stability.22 Amenable local conditions, such as an adequate supply of assets and cooperative financial institutions, are also associated with program success. The positive effects of asset-building may only materialize after a significant period of time; one randomized field experiment found most positive effects did not occur until four years post program completion.23 16
US Census Bureau (2010). Selected Economic Characteristics. Last Accessed July 19, 2012 at http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml/src= bkmk 17 Unites States Interagency Council on Homelessness, (2010). Opening Doors: Federal Strategic Plan to Prevent and End Homelessness. 18 Office of the Economic Advisor of the Governor, Commonwealth of Virginia. (2010). Homeless Outcomes Advisory Committee: Final Report and Recommendations. 19 Claibourn, M. (2011). A Review of Effective Practices in Financial Stability For the United Way of Greater Richmond and Petersburg. Communitas Consulting. 20 Haskins, R. (2011). Evidence Based Jobs Programs: What Works? What Doesn’t? The Brookings Institute, Accessed on July 30, 2012 from: http://www.familyimpactseminars.org/s_wifis30c04.pdf 21 Hogarth, Jeanne, Christoslav E. Anguelov, and Jinhook Lee. 2005. “Who Has a Bank Account? Exploring Changes Over Time, 1989-2001.” Journal of Family and Economic Issues. 26:1. 22 Lusardi, A., & Mitchell, O. (2007). Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education. Business Economics. Accessed on July 31, 2012, from: http://www.dartmouth. edu/~alusardi/Papers 23 Claibourn, M. (2011). A Review of Effective Practices in Financial Stability For the United Way of Greater Richmond and Petersburg. Communitas Consulting.