Registered Disability Savings Plans: Opening the door to untapped housing potential
MAY 2019
The Registered Disability Savings Plan (RDSP) was introduced in Canada in 2008 with the intention of helping people with disabilities and their families save for the future. The RDSP, which offers matching grants and bonds** from the Federal Government, is designed for long-term savings. It allows persons with disabilities to save money (up to $200,000) without impacting their provincial or territorial income assistance.
While an important financial tool, the RDSP has strict rules about eligibility, when money can be taken out, and how much can be withdrawn. The 2018 report Breaking Down Barriers: A critical analysis of the Disability Tax Credit and the Registered Disability Savings Plan showed that making sure people can access the money in their RDSP when they need it is critically important.
RDSPs hold a lot of potential for individuals with a disability, but their current design is keeping them from being used as effectively as possible. My Home My Community (MHMC) is working to change that.
With funding from the National Housing Strategy under the NHS Solutions Labs, our new initiative Exploring the RDSP for Homeownership and Housing Stability is examining options to make RDSPs more useful for people with disabilities and their families, specifically when it comes to housing security.
At least 24,000 Canadians with developmental disabilities are in core housing need, meaning that the place they live is unsuitable, inadequate, or unaffordable. Around 100,000 more are living in vulnerable housing situations. People with developmental disabilities often need housing that is not only affordable but also accessible. Accessibility includes how the house is built, and also how close the home is to community services and the disability supports a person may need.
Given this reality, we’re exploring what changes would be needed so people with a disability could use the money saved in their RDSP to pay for safe, stable housing. This includes opening the door (pun intended) to home ownership, among other options.
Allowing people with disabilities to use their RDSP money toward buying a house is an exciting idea for many reasons:
It provides stability. People living at home with aging caregivers could establish a home of their own, knowing their living arrangement is safe and secure.
It gives people control over their money. Trusting people to use RDSP money in whatever way best meets their unique needs is part of treating people with disabilities with dignity.
It makes more options affordable. Instead of being limited to subsidized housing options, access to RDSP money could make market rent affordable for more people with disabilities. This could help address homelessness and housing insecurity.
It gives people choice about where they live. For decades, people with disabilities have been forced to live in institutions or segregated spaces due to lack of real options - having choice is incredibly important.
It creates opportunities for being included. Living in everyday neighbourhoods and being part of the community enables people with disabilities to become part of social, cultural, and economic life.
We believe that people with developmental disabilities deserve the same housing options as everybody else. We think that the RDSP is one way to make this happen.
My Home My Community is excited to be partnering with self-advocates, families, and experts in housing, disability and inclusion on this work. If affordable, accessible housing is important to you, we invite you to keep following for updates about our progress.
**RDSP bonds are federal government funds available to eligible RDSP recipients who meet a low-income threshold. RDSP bonds do not require a personal financial contribution.