Upload
francine-hawkins
View
218
Download
0
Embed Size (px)
Citation preview
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
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
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
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
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.
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
9
Maria Taboada’s IDA
$2000 Savings
$4000 Matching
$6000 forHome
$2,000 Federal
$2,000 Non-Fed
$2,000 Maria Saves
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.
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
12
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.
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 FUNDinsured 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
Savings Match Data Collection
Econ Education Other Admin
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!
18
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