Megan O'Neil

As wars are waged and budget cuts loom, building assets may seem like a lofty and abstract goal. Probably like most everyone, I have been feeling a little overwhelmed by all the recent tensions in our world; the devastation caused by Hurricane Katrina, budget debates, Supreme Court nominees, and wars over terrorism. The instability of the world can cause even the most dedicated of advocates to wonder which issues are the most pressing and how to confront them.

Within the disability community, we still fight for a basic, substandard quality of life. However, despite all the tragedies (or maybe because of them), I feel that there has never been a better time for people with disabilities to get involved in the movement to build assets. Assets, like homeownership and microenterprise, create connections to our communities- providing stability to our lives, which we need now more than ever.

Poverty & Disability

The level of poverty among people with disabilities is astronomical. As the largest minority population, 54 million Americans have disabilities accounting for nearly 20% of the U.S. population. Depending on age and definition of disability, the poverty rates of people with disabilities range from 50 percent to 300 percent higher than the general population. One survey found that more than one-third (34%) of people with disabilities live on a household income of less than $15,000 per year, compared to 12 percent of people without disabilities (Harris, 1994, 1998). Another survey found that, among the population aged 25 to 64 with a severe disability, 28 percent have incomes below the poverty level compared to 8.3 percent for persons in this age group without a disability (SIPP). There has never been a better time to realize that poverty is the root from which all problems facing the disability community grow.

There is no one silver bullet to end poverty in America- whether you have a disability or not. Building assets is just one strategy that belongs in a larger toolbox of poverty reduction initiatives. For the disability community, the opportunities offered by asset building programs have yet to be fully realized. For many people with disabilities, the thought of owning their own home or starting their own business seems like an unattainable dream. Yet, that is exactly the potential that asset building programs offer our community- a realistic method for turning dreams into reality.

Homeownership

I was on Supplemental Security Income (SSI) for eight years. Life on SSI is depressing. For the majority of that time, I lived on approximately $500 per month and was not allowed to earn more than $85 a month or to have more than $2,000 in savings. It was difficult to believe that I would ever own my own home or be able to hold down a full-time job given the instability of my health. Everything changed for me when I started working for the World Institute on Disability as the coordinator of the Access to Assets project. My accommodations allow a flexible schedule, working at home when possible, and a generous benefits package that provides for health insurance and retirement.

I immediately became immersed in the world of asset building and started with myself as my first client. No longer subject to the asset restrictions of SSI, I saved as much as I could every month. While my income was too high to qualify for an Individual Development Account program, I did qualify for another asset building option- Community Land Trust housing. In July of 2005, I bought a completely accessible house in Berkeley, CA through the Northern California Land Trust.

A Land Trust home is not for everyone; currently, organizations are only established in several communities across the country. They are also not what many would consider a savvy investment- especially in the California real estate market. In a Community Land Trust, a non-profit organization provides permanently affordable housing in inner-cities, small towns, or rural neighborhoods. While there can be a variety of options from rental units, to condominiums, to single family homeownership; the Community Land Trust organization retains ownership of the land, while the individual or family owns the house and leases the land. Because the Community Land Trust retains rights to the land, they can ensure that the below-market housing rates are guaranteed to continue with each property sale. This makes the home limited in equity, meaning that no matter how much property values increase, homeowners are restricted to the same below-market rates that allowed us to purchase our homes in the first place.

However, the value of owning your own home is more than merely another place to live or a financial asset. Homeownership creates ties to the community and sense of responsibility to something larger than a selfish, solitary existence. For the first time in my life, while I do live alone, I do not feel alone- I feel connected to my neighborhood.

Entrepreneurship

A significant cause of poverty is the unemployment of individuals with disabilities. The 2000 Harris Poll commissioned by the National Organization on Disability found that only 32 percent of individuals with severe disabilities between the ages of 18 to 64 worked full time or part time compared to 81 percent of people without disabilities--a difference of 49 percent. This is one of the biggest controversies when it comes to participating in asset building programs- earned income.

Far too many people with disabilities feel that working is not an option. The level of discrimination and lack of accommodations excludes many disabled people wanting to work from entering the traditional employment sector. As a response, more and more individuals with disabilities are choosing entrepreneurship as the strongest viable solution for employment. Frequently, starting their own business was not a life-long dream; rather, it becomes an increasingly attractive proposition in an effort to escape the dismal quality of life provided by public benefits.

Patti Lind of the Abilities Fund frequently recounts stories of individuals that never dreamed that they would own their own business. Sometimes out of frustration, other times out of desire for a better life- entrepreneurship starts to look like a way around or beyond merely existing. Still other individuals with disabilities are hobbyists, beginning as a past-time or a source of gifts for friends and family. Yet, with the right support, guidance, and initiative (not to mention a carefully crafted business plan), a hobby can become a livelihood.

Asset Building Options

One of the best ways to describe the concept of asset building is to understand that a full range of choices are available. Here is a brief explanation of two of the most popular asset building programs and how they can benefit low-income people with disabilities.

Individual Development Accounts (IDAs)-

IDAs are matched savings accounts designed to help low-income individuals save for furthering their education, homeownership, or starting their own business. Some programs allow for other uses such as buying an automobile, computers or assistive technology. Individuals save regularly, typically over a 2-3 year period and have their savings matched by public or private funders (usually at a rate ranging from $1 to $4 for each dollar saved). Accountholders typically receive financially education and counseling.

Who Qualifies for an Individual Development Account? Each IDA program may have slightly different requirements to participate. Generally speaking, you must be within the income guideline of "200% of poverty". In addition to income guidelines, you must have "earned income". Earned income, defined by the Social Security Administration, is salaries, wages, tips, professional fees and other amounts received as pay for physical or mental work actually performed. Even if you do not meet these guidelines, you should still pursue participating in an IDA program; because the IDA program nearest you may have more liberal guidelines (some programs tie eligibility to Earned Income Tax Credit (EITC), or TANF).

For some people with disabilities, IDAs offer the only opportunity to build assets and retain essential public benefits. One of the biggest advantages to an IDA is that the money deposited into an IDA does not count as "earned income". This means, for example, a person receiving SSI can earn more than the $85 allowed by Social Security. An SSI recipient can deposit their earnings into a Federally-funded IDA without reducing the amount they receive in SSI because money deposited in an IDA does not count towards the $85 allowable exclusions. Currently, this is the only way a person on SSI can save for his or her own home and avoid the asset restrictions imposed by Social Security.

Family Self-Sufficiency Program (FSS)

FSS is a voluntary program open to adults residing in public housing or the housing voucher program. Upon enrollment, the individual meets with a case manager who helps develop a five-year training and services plan that charts the steps he or she needs to take to become and stay employed, increase his or her earnings, become independent of welfare assistance, and achieve other individual goals (such as homeownership). As the household's earnings increase, the household's rent also goes up (families in subsidized housing are generally expected to pay 30 percent of their income for rent). However, an amount roughly equal to the increase in rent due to the household's increase in earnings goes into an escrow account that the household receives upon successful graduation from FSS.

There are several advantages for people with disabilities in the FSS program. The FSS program requires that the head of the household seek and maintain "suitable employment". The Public Housing Authority has discretion on who is determined the head and what is considered "suitable employment". For households that have a member with a disability, the advantage can be that someone other than the disabled individual can be considered the head of the household. Suitable employment for someone with a disability could be defined in relation to his or her own abilities to work. Most importantly, FSS does not consider SSI or SSDI as welfare. This means that a person receiving SSI or SSDI could continue to do so and still participate in the FSS program, reaping the benefits of the escrow account, which does not count as a personal asset until completion of the program.

Conclusion

The potential of asset building programs to lift people with disabilities out of poverty is enormous. In many situations, these programs are a perfect fit and offer hope for our community to move beyond the subsistence mentality. Yet, as much opportunity exists, the asset building community needs the disability community to become involved. Like all social programs receiving governmental assistance, poverty-reduction programs are facing budgetary cuts that are jeopardizing their future. It is essential that we get involved and make our considerable voice heard. If we want to benefit from the opportunities provided by asset building programs, we need to let Congress know that cutting funding of these programs is not an option. There is strength in numbers- 54 million people cannot be ignored. While the uncertainty of the world is not likely to go away, one power the disability community needs to recognize is that our collective voice can change the world.

To get involved, see the 2005 October EQUITY Responds and Tip of the Month sections for legislative opportunities that support IDAs and the FSS Program. Your voice can make a difference!