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Welcome!

Welcome!. AFI Program Overview AFI Resource Center. Assets for Independence. Special federally funded 5-Year projects that enable accountholders to ... Learn about financial and consumer issues Save in Individual Development Accounts In order to … acquire a first home

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Welcome!

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  1. Welcome! AFI Program Overview AFI Resource Center

  2. Assets for Independence Special federally funded 5-Year projects that enable accountholders to ... • Learn about financial and consumer issues • Save in Individual Development Accounts In order to … • acquire a first home • access higher education or training and/or • start or support a small business • save to transfer to an eligible dependent

  3. Specialized savings account help low-wealth residents acquire an asset. Savings are matched by host agency. Encourage regular savings. Accountholders receive financial education and asset-specific training to prepare them for their asset purchase and retention. Individual Development Accounts Self- Sufficiency Transform to Assets Save

  4. AFI Participants Low income people can and do save Over 62,000 people have saved $54.5 million Since 1999, more than 542 AFI projects have been implemented by 325 organizations nationwide 24,000 Total Purchases: 8,800 home purchases, 6,300 small business starts or expansions and 7,400 education acquirers 4

  5. AFI Funded Projects • Multi-purpose non-profits that provide a menu of services for low-income families (single agency) • Public/Private Partnerships including state, local or tribal governments • Multi-site networks • Find a project near you by going to: http://www.acf.hhs.gov/assetbuilding/states.html

  6. Participant’s Perspective

  7. Example: “Maria Taboada” • Maria was informed that her apartment building was going to be demolished. • Maria needs a home • Housing program requires $6,000 for down payment and closing costs • Financial Education, debt counseling and information about home ownership • Match rate of $2 for every $1 saved in her IDA • Maria saves $2,000: $100/month for 20 months

  8. IDA: A Homebuyer Example Maria Taboada start saving $100 per month in December 2006. June 2007 June 2008 October 2008 December 2006 December 2007 6 months + 6 months + 6 months + 4 months saves $600 and earned $1,200 in IDA match (50% match is AFI; 50% match is non-federal). begin saving $100 per month saves another $600, earns another $1,200 saves $600 for total of $2,000. Achieved savings goal! Found a three-bedroom, two-bath house! $6,000 from IDA pays closing costs and down payment. 8

  9. Maria Taboada’s IDA $2000 Savings $2,000 Maria Saves $4000 Matching $2,000 Federal $2,000 Non-Fed $6000 for Home

  10. Example: “Guadalupe” • Guadalupe wants to send her three daughters—Iris, Catalina, and Cynthia—to college • She takes courses in Financial Education, debt counseling and training • Match rate of $4 for every $1 saved in his IDA • Guadalupe saves $1,500 -- $62.50/month over 2 years

  11. IDA: An Education Example Iris begins at CSU-San Francisco through her mother saving $62.50 a month for two years. June 2008 August 2009 December 2009 December 2007 December 2009 6 months + 6 months + 8 months + 4 months Guadalupe has saved $375 and earned $1,500. She can spend up to $1,875 on school. Iris spends IDA funds every semester for tuition, fees and books. Guadalupe begins saving $62.50 per month Guadalupe saves another $375, earns $1,500 and spends the $1,875 on semester 2. Guadalupe saves $500 and earns $2,000. Iris graduates! She has no student loans, plus she has learned valuable savings behavior from her mother. 11

  12. Guadalupe’s IDA $1,500 Savings $1,500 Guadalupe Saves $5,000 Matching $2,000 Federal* $3,000 Non-Fed $6,500 for Education *Maximum Federal Contribution is $2,000 per individual/$4,000 per family.

  13. Organization’s Perspective

  14. Funding • Five-Year Project Grants • Must have cash support commitment equal to the Federal grant amount requested. Examples of non-federal match sources include: • Financial institutions • Foundations: especially local, regional • United Way organizations • Corporations / Employers • Faith-based organizations • State and local governments • Individuals

  15. Project Reserve Fund PROJECT RESERVE FUND insured financial institution $200,000 Federal Grant $100,000 Non-Federal $100,000 (Cash only)

  16. Allowed Uses of Project Reserve Funds • At least 85% to match IDA savings • Up to 13% for financial education and other project costs • At least 2% for data collection

  17. Implementing Your IDA Project: Program Elements Outreach and Recruitment Case Management Financial Education Asset-Specific Education AFI2 Asset Purchase Who are your community partners at each step? Partnerships are vital to a successful IDA! 17

  18. AFI funds up to $1,000,000 (the average grant size is $350,0000) FY 2010 application cycles January 15th March 25th June 25th Request for Proposals:AFI Grants Overview 18

  19. Contact Information AFI Resource Center info@idaresources.org 866-778-6037 www.acf.hhs.gov/assetbuilding

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