Justine Petersen Housing & Reinvestment Corporation

1. Justine Petersen Housing & Reinvestment Corporation Individual Development Accounts: What Next? Planning & Implementing an IDA Program Sheri Flanigan-Vazquez (314) 664-5051 ext. 117 sflanigan@justinepetersen.org

2. Justine Petersen Housing & Reinvestment Corporation Mission To connect institutional resources to the needs of low- and moderate-income families to build assets and create enduring change Products • Homeownership • Micro-Enterprise • Individual Development Accounts

3. JPHRC Accomplishments • Homeownership • Individual counseled 9,200 • Assisted 1,630 to purchase • Accessed $100 million in loans • Individual Development Accounts • 485 IDA accounts • 181 matched withdrawals • Micro-enterprise • 80 micro-borrowers • $550,000 loans originated

4. How do IDAs fit into your organization’s mission?

5. How can IDAs help you to enhance your existing programming? Build on your organization’s strengths

6. Integration Strategies Long-term Asset Retention • Graduates (homeowners) • Previous successful relationship - trust • Challenges: Follow-up with non-savers may be isolated if post-graduate support services aren’t currently offered

7. Integration Strategies Client Retention • Additional Point of Contact • Incentive to Complete Program/ Stay involved with your organization

8. Integration Strategies Client Recruitment • New “harder to reach” population • Expands Mission • Challenges: Programming may have to be adjusted to needs of new population

9. Integration Strategies • Defining how IDAs will be used will help to determine: • Allowable Asset Uses; • Target Population(s); • Account structure (term, match rates)

10. Target Population: Focus Groups and Surveys • May help define program structure • Establish the purpose • Focus on what can be enhanced • Saver’s Club (example)

11. Goals • Account Retention • Credit Improved • Banking the Unbanked • Asset Retention See Handout

12. Collaboratives • Find out who else is doing IDAs • Communicate • Coordinate • Collaborate • Strengths-based model

13. Great Rivers Community Reinvestment Corporation United Way of Greater St. Louis Resource Development (for Great Rivers Community Reinvestment); Develop a resource development strategy Develop donors by using Missouri tax credits, writing grants, approaching bank partners, etc. Distribute matching funds as due Report quarterly Report to potential donors and interested parties regarding the project’s progress Develop cross-site marketing materials Great Rivers Board Oversee and select partners (Community Partners, Financial Institutions; Money management instruction partners) and hold them accountable) Negotiate a percentage of each funding source for administrative costs Develop an investment strategy for matching funds Train Community Partners (as needed) In recruiting clients, and, as needed, conducting orientations, individual assessments, teaching classes, other training; develop and provide handbook and materials Allegiant Bank House Accounts Justine Petersen Housing and Reinvestment Coordinate training and counseling Conduct (or arrange for Community Partners to conduct) orientations, assessment interviews. Similarly coordinate money management instruction Manage Accounts (Manage MIS System, Send Account holders and Community Partner organizations monthly account statements; monitor deposits; approve matching funds purchases) Refer Potential Donors Refer donors to the Great Rivers Board for consideration; solicitation conducted by the United Way on behalf of Great Rivers Bank of America House Accounts US Bank House Accounts Partners Recruit participants Develop Savings Plan for each account holder; maintain client records Case management *Relationship with all partners Proposed Partner Proposed Partner Proposed Partner Beyond Housing SSDN Urban League Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner Proposed Partner

14. Funding Sources • United Way of Greater St. Louis • Assets for Independence • Federal Home Loan Bank • Missouri State Tax Credits

15. Bank Partners • Electronic File Transfer • Duplicate bank statements • Interest rates • Fees to customer • Incentives to customers

16. Staffing & Program Size • JPHRC product • 1 FTE (part of three staff members’ time) • Assumes Case Managers are paid under integrated product • Overhead and Administrative staff distributed over products (5%) • Nearly 500 accounts • Plan to open 300 new accounts in next six months through Partner Agencies