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A person is obligated to live as simply as possible in order to avoid tkaing tzedaka Shulchan Aruch Yoreh Deah 255:1). Thus, if someone is liivng in an expensive house he should sell it and even live in a small rental apartment. If he is unwilling the community is only obligated to defray his expenses if the paupers are few in relation to their numbers and wealth so as not to deplete the public treaury (Aruch HaShulchan Yoreh Deah 250:4-5). Of course, if the community is wealthy the best thing would be to use their connections to find him a job similar to his previous one or set him up in business (Shulchan Aruch 249:7 and Shach seif katan 7). If this means selling his house and moving into a rental to raise the capital it would seem that he is obligated to do so,