7
Conclusions and recommendations for future program development
The emerging evidence suggests that there is a growing demand and a role for microfinance across the
spectrum of households needs. The benefits are generally positive and superior to those from fringe
lenders that low income households are forced to rely on when they have no other alternative and where
government funded programs are limited. As governments look towards new ways of delivering housing
assistance through public-private partnerships, it is likely that models of microfinance will have potential
appeal. There is however limited understanding of the effectiveness of microfinance in the broader
housing context. This evaluation goes some way to building an emerging evidence base that can inform
the further development of models in the future.
Although limited in scope, the brokerage program
has been effective in leveraging more rapid access
to private rental properties for those assisted. The
modest size of the program has allowed WCC to
trial its implementation without significant risk to
the funds invested or to the clients in receipt of
brokerage loans. Section 2 reinforced the growing
importance of the private rental sector as the main
housing option for low income households now
and into the future. It is critical that private rental
support programs can mitigate the market risks of
gaining access to rental properties and to
sustaining tenancies over time. The provision of
upfront assistance to remain in the private rental
market is an effective means of preventing
homelessness and its associated social and
economic costs to society.
This final section documents the suggestions and
recommendations for how the model can be
further developed in practice. The
recommendations provided extend to those that
can be addressed by WCC within the scope of the
program.
7.1
Expansion of the brokerage
capacity
The initial capital investment of $12,000 has
provided housing brokerage assistance for 18
clients. Both internal and external stakeholders
believed it was necessary to seek additional
funding from a mix of government and private
philanthropic funders for the program to expand. It
was not articulated how large the program could
grow. However, growth needs to be manageable
within the capacity and resources of WCC. Staff
identified that the program would need at least an
additional $25,000-$30,000 in brokerage funding
to meet existing demand, which could continue to
be replenished as clients pay back the loan. There
was also a view that the brokerage funding could
be better tied to HEF money for financing different
aspects of the resettlement process. With
additional funding there was a suggestion that
funds could be directed to shared or matched
commitment to the purchasing of essential items
where the client pays a certain amount and the
services match the amount. Step down models for
rent assistance were also suggested where the
service commences to pay 75% at the initial
housing stage, then moves down to 50% and then
10% and then the client moves to independent
payment.
There was a strong view amongst those consulted
that the program must continue to target
individuals and households who have the capacity
to repay. The three groups targeted for loans were
considered suitable and should remain the focus of
the program as it moves to the next stage of
development. Generally, clients felt very satisfied
with the amount of assistance they received and
the service’s main impact has been to ‘open the
door’ to private rental housing as well as creating a
greater sense of stability. Nonetheless,
affordability problems remain a persistent concern
for the majority of tenants in their properties,
requiring them to be disciplined in their budgeting
and making sacrifices in order to get by each week.
The initial brokerage program was implemented
cautiously as a small scale pilot with the intention
of expanding it further following the
implementation phase and evaluation of the pilot.
Staff, stakeholders and clients were asked to
comment on whether ѡ