IDAs in Rural Communities

1. IDAs in Rural Communities Assets Learning Conference Thursday, September 23, 2010 9:45-11:45 am

2. Significance of Rural • While the definition of rural is elusive, most estimates have the rural population of the US at between 20-25% of the total American population • Generally accepted that rural poverty is higher • Rural programs face unique challenges and opportunities • Rules are not always crafted with rural practitioners in mind

3. Presenters • Liz Myntti – Lower Columbia Community Action Program http://www.lowercolumbiacap.org/ • Cristina Trujillo - California Coalition for Rural Housing www.http://calruralhousing.org/ • René Bryce-Laporte – Aspen Institute Community Strategies Group http://www.aspeninstitute.org/policy-work/community-strategies

4. Community Strategies Group • The Aspen Institute Community Strategies Group (CSG) energizes and prepares people, organizations and collaboratives to do the best for their communities and regions • Helping low- and moderate-income Americans build assets is a cornerstone of our work

5. Lower Columbia Community Action Program Financial Independence Center • The Financial Independence Center is a program at Lower Columbia CAP dedicated to helping the community get back on their financial feet in trying times. • We offer asset building services like: • CAPital Investments Individual Development Account Program, • Earned Income Tax Credit help, • Bank On Cowlitz County and  • FDIC Money Smart Financial Education classes. • Free Tax Preparation help.

6. California Coalition for Rural Housing • CCRH heads the Rural California Asset Development Network.The Network consists of CCRH member organizations who commit to: • implementing and administering IDAs in their region • providing supportive financial education, asset-specific training, and access to banking amongst poor, rural, and immigrant communities. • CCRH serves as the lead agency for accessing the AFI funds and mobilizing technical support for Partners of The Network.

7. Map of the Session • There are a number of particular challenges that face Rural IDA programs. • We’d like to address seven here: • Partnerships • Program Design • Distance & Transportation • Access to Funding • Access to Broadband • Finding a Financial Institution Partner • Reaching Out to the Communities

8. Partnerships • Virtually NO IDA program can operate without partnerships • Rural IDA programs often have to cover large areas. May need more partners than urban or suburban programs: • Recruitment • Training • Financial Institutions • May be tough to locate partners

9. Partnerships • Local partnerships are greatest value • Don’t recreate what already exists in your communities • Seek out all aspects of service providers that fit qualified assets • Affordable housing opportunities • Educational Institutions • Micro Development Organizations (MDO’s) or Small Business Development Centers (SBDC’s) and now Workforce Development.

10. Partnerships • The California Coalition for Rural Housing (CCRH) launched the Rural California Asset Development Network IDA Program (The Network) in 2006 with an Assets for Independence grantfrom the U.S. Department of Health and Human Services (HHS)

11. Partnerships • The Rural California Asset Development Network IDA Program, a state-wide "Network” of seven current partners committed to promoting asset building opportunities through Individual Development Accounts. • Current Partners: • Amador Tuolumne Community Resources (ATCR) • California Rural Legal Assistance (CRLA) * • Community HousingWorks (CHW) * • Community Housing Opportunities Corporation (CHOC) * • South County Housing (SCH) * • Self-Help Enterprises (SHE) * • Scotts Valley Housing Authority (SVHA)

12. Program Design • Design varies greatly as communities vary greatly • Permissible uses • Rural housing – availability and cost varies, stock quality often questionable • Microenteprise of particular rural importance • Education underused • Can you find a way to fund car purchase?

13. Program Design • Match structure: what works to help accountholder successfully acquire their asset? • Financial Education • How much? • How delivered? • Staffing • Depends on partnerships • Can your program recruit high quality staff members? • Can staff reach accountholders

14. Program Design • Program Design • Strategies will follow contract agreements • Identify service area and expand to all outreaching communities not currently serving IDA’s • Financial Education key to all asset building services • Money Smart is free and has several delivery methods • Seek local faith based and community based organizations to partner with Fin. Ed. workshops. It’s an easy sell as it is now universally accepted as a key to financial self sufficiently

15. The Network Model IDA Account Holders Project Reserve Accounts Funders Sub-Grantee IDA Providers Main-Grantee Intermediary CCRH Funders Project Reserve Accounts 9/21/2014

16. PRHP’s Framework

17. Distance and Transportation • People in rural communities are used to having to travel great distances. This is an issue with IDA programs in two ways: • Customer access to classes and financial institutions • Staff access to customers and partners • Low-income people are most likely to be your customers, but also most likely to have poor access to reliable transportation • Need local partners!

18. Distance and Transportation • Money Smart – Evening and morning – CD- CBI (computer based instruction) – can save or print certificate for all sessions with 80% proficiency • Applications available on line • Intakes have been conducted by phone with documents in front of accountholder and intake staff. After signatures, faxed or mailed or scanned to program. • Client savings accounts have been established with their financial institution and monitored monthly electronically or by mail. All match held at agency financial institution.

19. Distance and Transportation • CCRH does not face the great distance and transportation challenges because its project design includes affordable housing multi-family sites. • The IDA partners provide most of their constituent services at the multi-family sites.

20. Access to Funding • A challenge for all, but fewer local funding options in rural communities. Be imaginative! • Look at potential new partners • Community colleges • Community foundations • Networks/coalitions provide an opportunity to access to maximize funding and minimize in house expenses • Both in terms of funding and staffing – integrating IDAs into existing programs in highly beneficial

21. Access to Funding • Greatest current challenge • Need to be creative in seeking match funders, match their interests, not yours (Homeownership, education, small business) • Need to use creative staffing, as IDA admin alone will not sufficiently staff case managers. Partner with programs, like TANF WorkFirst or WIA. Meets the earned income requirement and staff can provide these next steps to self sufficiency

22. The Network Model IDA Account Holders Project Reserve Accounts Funders Sub-Grantee IDA Providers Main-Grantee Intermediary CCRH Funders Project Reserve Accounts 9/21/2014

23. PRHP’s Framework

24. Access to Broadband • In some cases, access to broadband can ease the challenges of distance. • In many rural communities, access to high-speed internet is limited or not available at all • This is important given the commerce and education that takes place over the internet • Large numbers of rural homes lack high-speed internet access

25. Access to Broadband • Believe that those not within a broadband service area, are OK with other forms of communication and service delivery. May accommodate by traveling to their areas of commerce, e=where they shop, not where they live.

26. Access to Broadband • CCRH customers do not face challenges with Broadband as most of their partners provide access to computers and internet at their multi-family developments.

27. Finding a Financial Institution Partner • Every IDA program must have a financial institution partner • Can be important to have a variety of partners in each town • Rural financial partners may have more connection with community, but the benefit of holding accounts is not the same • Challenge to track figures and results • Also have multiple agreements

28. Finding a Financial Institution Partner • Seek community friendly partners • Sell the market share of accounts • Sell point of accountholder ability to move on to additional product lines

29. The Network Model IDA Account Holders Project Reserve Accounts Funders Sub-Grantee IDA Providers Main-Grantee Intermediary CCRH Funders Project Reserve Accounts 9/21/2014

30. PRHP’s Framework

31. Reaching Out to the Communities • Marketing in a rural community can be relatively cheap • Word of mouth is the best form of advertising--- with only one degree of separation from accountholder or service providers • Over time, easier to get deep market penetration

32. Reaching Out to the Communities • Need to take marketing to the service areas • Utilize existing organizations that have an area of interest with your qualified assets, let them promote your opportunity • Create press releases and submit to all print media, whether the story involves local customers or not. Get the story across even if they don’t recognize the face or name.

33. Reaching Out to the Communities • Use PSA’s (public service announcements)– they are free at most radio stations for non-profit events and news • Get on the band wagon for local, state and national events: • April Financial Literacy month – we have a declaration from our Washington governor and city council • We use Cowlitz Saves in conjunction with Washington and America Saves Week

34. Reaching Out to the Communities • Use your existing client base • Utilize partnerships • Use existing marketing materials and programs

35. Questions?

36. Other Resources • Assets for Independence Program • http://www.acf.hhs.gov/programs/ocs/afi/index.html • IDA Resources • http://idaresources.org/ • IDA Network • http://www.cfed.org/programs/idas/ • Lower Columbia CAP/CBS News Story • http://www.cbsnews.com/stories/2008/11/12/eveningnews/main4597318.shtml

37. Contact Information • Liz Myntti • LizM@LowerColumbiaCAP.ORG • Cristina Trujillo • cristina@calruralhousing.org • René Bryce-Laporte • rene.bl@aspeninst.org