New Hampshire Statewide IDA Collaborative:

A model for including people with disabilities

2003 IDA State Policy ConferenceCenter for Social Development

November 10-12, 2003

Introduction

• Overview Statewide IDA Program

• Modifications that support inclusion

• Case Study

• Lessons Learned

Background NHCLF

Mission

To serve as a catalyst, leveraging financial, human, and civic resources to enable traditionally under-served people to participate more fully in NH economy.

Strategies

•Provide loans, capital, and technical assistance

•Complementing and extending the reach of conventional lenders and public institutions; and

•Bringing people and institutions together to solve problems

Program Areas

•Affordable housing

•Manufactured Housing Park Program

•Home Of Your Own/Single Family Special Initiative

•Community facilities

•Child Care Facilities

•Non-Profit Facilities

•Economic opportunity

•MicroCredit-NH

•Individual Development Account

NH Statewide IDA Collaborative

AFIA-funded Statewide IDA Collaborative designed to help eligible low income

workers of New Hampshire achieve the dream of homeownership, post-secondary

education or small business startup/development.

Eligibility and Uses

Eligibility– 200% Poverty– EITC Eligible– TANF Eligible

Savings Categories– Homeownership– Post-Secondary Education– Small Business Startup/Development

Pilot Savings Categories– Home Repairs– Vehicle Ownership

Match Structure

3:1 match $25/month minimum savings $100/month maximum savings $1,000/year savings cap $2,000 lifetime savings cap

$6,000 maximum match per individual

Organizational Structure

• 20 Community Partners – Front End

• NHCLF- Backroom Operations

• Financial Institutions – Hold IDA Accounts

•Other Partners – Provide training and referrals

Community Partners: Front-end

•Serve the eligible population (recruitment)

• Facilitate IDA Application Process/Paperwork

• One-on-One Counseling

• Access to Financial Literacy & Asset specific

training

• Troubleshooting with NHCLF

NHCLF – Backroom Operations

• Raise Match Funds

• Provide Technical Assistance and Troubleshooting with Community Partners

• Facilitating the IDA Accounts (w/Financial Inst.)

• Tracking Savings, Match & Training

• Providing Match Savings Statements

• Central Coordinating Agency of all Partners

Financial Institutions

• Specific Features

•Custodial

•No Fees & Interest Earning

•Duplicate Statements (1 to client, 1 to NHCLF)

•Provide Funding for the IDA Collaborative

• Training and TA on financial education topics

Other Partners

Other Partners include: Cooperative Extensions, Homebuyer Education Centers, Higher Education Assistance Centers

Provide Financial Fitness and/or Asset Specific Training

Work with Community Partners to enhance/develop curriculums

NH Statewide IDA Collaborative highlights….

Each Community Partner holds “ownership” over their Program.

Program rules/updates are discussed at Quarterly Community Partner Meetings

NHCLF Provides no operational dollars to the partners to run the Program

NH Statewide IDA Collaborative highlights….

After 2 years…– 428 Total Enrolled 333 Actively Enrolled

288 Home; 16 Education; 18 Business; 9 Other

– 30 Graduates of Homeownership (as of 10/28)– $296,231.21 Saved– $767,691.72 Matched– $100,376.68 Paid Out

MoneyWorksCommunity Partner

An initiative of Project Dollars and Sense

Tied eligibility to working people with disabilities eligible for SSI or SSDI

Savings for home ownership; college; business

Problem

Real or perceived financial disincentives

Difficulty navigating public benefit system

Un-served or under-served by financial institutions

Low-wages

Lack of support

Goals

Plan public benefits necessary in order to work and improve economic well-being

Use financial services successfully

Develop positive financial habits and credit history

Methods

Integrated counseling (benefits, credit, asset training)

Peer Support

Financial education workshops

Affordable financial services

Individual Development Accounts

Money Works Infrastructure

$ CDFI $

Credit Union

Benefit

Planners

Self Help Groups

Certified

Credit

Counselors

Affordable Housing Group

Personal Benefits Planning

Current situation assessment

Income projections and work incentive options

Information and referral

Follow up as needed

Other mechanisms for asset building

Un-incurred Business Expenses Property Essential for Self Support Independence Building Accounts Special Needs Trusts*

*Not owned by beneficiaries

Certified Credit Counseling

• Credit history & recommendations

• Spending & Savings Plans

• Credit Use and management

• Survival skills in the marketplace

• Preparing for asset goal

Asset Based Training

Home Ownership

Postsecondary education

Self employment

Peer Support

• Savings clubs and buying coops

• Managing illness and financial wellness

• Organization skills

• Navigating marketplace

• Working toward goals

Case Study

• Works part-time

• Currently lives in 808 accessible housing

•Annual income – $12, 852(earnings - $520/mos; SSDI – 541/mos.)

• Medicaid Buy-In (MEAD Program)

• HCBC-ECI Waiver

Case Study Cont.

Enrolled October 2002 – Home ownership

Average monthly savings $100

$1000/$3000 match + interest

Saving toward home with extra bedroom for backup PCA.

Equity building….

IDA$3,600 FHLB

$12,000

DMHD$2,500

CPI$20,000

NHHFA$5,000

MNHS$25,000

Financial Support

Social Security Administration Haymarket People’s Fund Citizen Bank Providian Bank Assets for Independence Act Fund

Contact Information

Tobey DaviesCenter for CED and DisabilitySchool of CED/SNHU2500 No. River RoadManchester, NH 03106-1045

Phone: 603-644-3103 Fax:603-644-3103t.davies@snhu.eduwww.snhu.edu/sced.html

Chris LeBrunIDA Program ManagerNH Community Loan Fund7 Wall StreetConcord, NH 03301

Phone: 603-224-6669Fax:603-225-7425; clebrun@nhclf.orgWebsite: http://www.nhclf.org