Welcome! AFI Program Overview AFI Resource Center Assets for Independence Special federally funded 5-Year projects that enable accountholders to ... • Learn about financial and.

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Transcript Welcome! AFI Program Overview AFI Resource Center Assets for Independence Special federally funded 5-Year projects that enable accountholders to ... • Learn about financial and.

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
• 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.
SelfSufficiency
• Encourage regular
savings.
• Accountholders receive
financial education and
asset-specific training to
prepare them for their
asset purchase and
retention.
Transform
to Assets
Save
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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
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Participant’s Perspective
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
June
2007
6 months
June 2008
October
December
2008
2007
+ 6 months
+ 6 months
+ 4 months
saves $600 and
earned $1,200 in
IDA match
(50% match is AFI;
50% match is nonfederal).
saves another
$600, earns
another $1,200
saves
$600 for
total of
$2,000.
Achieved
savings
goal!
Found a threebedroom, twobath house!
$6,000 from IDA
pays closing
costs and down
payment.
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Maria Taboada’s IDA
$2,000 Maria Saves
$2,000 Federal
$2000
Savings
$4000
Matching
$2,000 Non-Fed
$6000 for
Home
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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
June
2008
6 months
Guadalupe
begins
saving
$62.50 per
month
August
December
December
2009
2009
2009
+ 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
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.
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Guadalupe’s IDA
$1,500 Guadalupe Saves
$2,000 Federal*
$1,500
Savings
$5,000
Matching
$3,000 Non-Fed
*Maximum Federal Contribution
is $2,000 per individual/$4,000
per family.
$6,500 for
Education
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Organization’s Perspective
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
Federal Grant
$100,000
Non-Federal
$100,000
(Cash only)
PROJECT
RESERVE FUND
insured financial
institution
$200,000
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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
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Contact Information
AFI Resource Center
[email protected]
866-778-6037
www.acf.hhs.gov/assetbuilding