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Welcome! AFI Program Overview AFI Resource Center

Welcome! AFI Program Overview AFI Resource Center

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Page 1: Welcome! AFI Program Overview AFI Resource Center

Welcome!AFI Program Overview

AFI Resource Center

Page 2: Welcome! AFI Program Overview AFI Resource Center

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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

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Individual Development Accounts • 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.

Transform to Assets

Save

Self-Sufficiency

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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

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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

Page 6: Welcome! AFI Program Overview AFI Resource Center

Participant’s Perspective

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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

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IDA: A Homebuyer Example

Maria Taboada start saving $100 per month in December 2006.

December 2006

begin saving $100 per month

June2007

saves $600 and earned $1,200 in IDA match

(50% match is AFI; 50% match is non-federal).

6 months

June 2008

saves $600 for total of $2,000.

Achievedsavings goal!

December 2007

saves another $600, earns another $1,200

+ 6 months + 6 months

October2008

Found a three-bedroom, two-bath house!

$6,000 from IDA pays closing costs and down payment.

+ 4 months

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Maria Taboada’s IDA

$2000 Savings

$4000 Matching

$6000 forHome

$2,000 Federal

$2,000 Non-Fed

$2,000 Maria Saves

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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

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IDA: An Education Example

Iris begins at CSU-San Francisco through her mother saving $62.50 a month for two years.

December 2007

Guadalupe begins saving $62.50 per month

June2008

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.

6 months

August 2009

Guadalupe saves $500 and earns $2,000.

December 2009

Guadalupe saves another $375, earns $1,500 and spends the $1,875 on semester 2.

+ 6 months + 8 months

December2009

Iris graduates! She has no student loans, plus she has learned valuable savings behavior from her mother.

+ 4 months

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Guadalupe’s IDA

$1,500 Savings

$5,000 Matching

$6,500 forEducation

$2,000 Federal*

$3,000 Non-Fed

$1,500 Guadalupe Saves

*Maximum Federal Contribution is $2,000 per individual/$4,000

per family.

Page 13: Welcome! AFI Program Overview AFI Resource Center

Organization’s Perspective

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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

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Project Reserve Fund

PROJECT RESERVE FUNDinsured financial

institution

$200,000

Federal Grant$100,000

Non-Federal$100,000

(Cash only)

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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

Savings Match Data Collection

Econ Education Other Admin

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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!

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Request for Proposals:AFI Grants Overview

• AFI funds up to $1,000,000 (the average grant size is $350,0000)

• FY 2010 application cycles • January 15th

• March 25th

• June 25th

Page 19: Welcome! AFI Program Overview AFI Resource Center

Contact Information

AFI Resource [email protected]

866-778-6037www.acf.hhs.gov/assetbuilding