CHRISTIANNE LIND THE FINANCE PROJECT Washington Area Women’s Foundation Stimulus Forum July 22, 2009 ARRA Funding for Asset Building

Assessing & Prioritizing Funding Opportunities Uses of Funding What types of investments can the funding source support? Does it align with the initiative’s priorities and needs? Amount of Funding How much money will it generate? Do the benefits outweigh the costs for applying for and managing the funding? Timing Is the initiative prepared to apply for and expend funding quickly? How will the investment be sustained once ARRA funding ends? Flow of Funding How will the funds be disbursed? Are the right relationships and partnerships in place to access or influence funding?

Entrepreneurship SourceUsesAmountFlow of Funds Microloan Program Entrepreneurship training Loans/Microloans for small businesses Technical assistance $50 million total; Loans range up to $35,000 Non-profit intermediaries, then qualified borrowers Temporary Assistance for Needy Families Entrepreneurship training Financial education IDAs Loans/Microloans for small businesses Supportive services $5 billion totalState governments Workforce Investment Act Apprenticeships Entrepreneurship training Financial education Layoff prevention Supportive services Technical assistance and training Youth development $1.2 billion -youth activities $500 million- adults $1.25 billion - dislocated workers State governments, then local workforce investment boards and contractors

Examples: WIA Youth Activities Georgia  Using $31.3 million in ARRA funding to serve an additional 10,000 youth in summer work activities  Work opportunities at private businesses, city and county government, school system, and local libraries  Green jobs—technical college offering work experience and training in water quality and environmental management Illinois  Using $62 million in ARRA funding to serve an additional 15,000 youth in summer activities  Work opportunities at city agencies and colleges  Green jobs—recycling and local farmers markets

Homeownership SourceUsesAmountFlow of Funds Community Development Block Grant Homeownership assistance Housing rehabilitation and renovation $1 billionLocal governments, which can administer competitive grants Community Services Block Grant Homeownership assistance and counseling Housing rehabilitation and renovation Rental assistance $985 millionState governments, which disburse funds based on state plan Neighborhood Stabilization Program Affordable housing development Homeownership assistance and counseling Land banks Rehabilitation of foreclosed/vacant properties $1.98 billionCompetitive application (9/1); eligible grantees-- state/local governments and nonprofits Public Housing Capital Fund Public housing development and modernization $3 billion- formula grants $995 million- competitive Public housing agencies; competitive application (9/30)

Homeownership Making Home Affordable, provides additional assistance for foreclosure prevention Refinancing—available to 4 to 5 million homeowners with an existing mortgage owned by Fannie Mae or Freddie Mac (expires June 10, 2010) Modifications—designed to help 3 to 4 million at-risk homeowners by reducing monthly mortgage payments

Examples: Neighborhood Stabilization Program Prince George’s County  Using $10.8 million federal grant to expand Down Payment on Your Dream Program  $9 million to help 700 first-time homebuyers with down payment and closing costs for purchasing vacant, foreclosed homes  $483,000 for homeownership counseling Fairfax County  Using $1 million of 2.9 million federal grant to expand a homeownership program, Silver Lining Initiative

Infrastructure and Capacity Building SourceUsesAmountFlow of Funds Non-Profit Capacity- Building Program Financial assistance (e.g. technology, equipment, research/evaluation) Technical assistance and training $50 million total; grants up to $1 million Competitive application (7/7); eligible entities– lead agencies that work with nonprofits State, Local and Tribal Government Capacity Building Program Benefits planning and outreach Coordination and collaboration with nonprofits Research and evaluation Technical assistance and training Technology $12 million total; 48 grants up to $250,000 Competitive application (7/7); eligible entities— state, county and tribal offices

Savings and Banking Services SourceUsesAmountFlow of Funds Community Development Financial Institutions (CDFI) Program Entrepreneurship training IDAs Loans/Microloans to small businesses Financial education Homeownership assistance Technical assistance, training and technology $100 million total Competitive application (5/27) for eligible CDFIs

Tax Benefits That Support Asset-Building Goals ARRA includes a range of tax credits that directly benefit individuals  American Opportunity Tax Credit  Earned Income Tax Credit  Making Work Pay Tax Credit  First-Time Homebuyer Credit  New Market Tax Credit  Tax Credit Assistance Program Outreach and tax preparation assistance are important to ensure that individuals access these benefits

Example: First-Time Homebuyer Credit Miami  First-Time Homebuyer Forum in March  Hosted by Senator Mel Martinez and HUD  Information on an array of homeownership assistance programs FHA loans First-time homebuyer tax credits Neighborhood Stabilization Program Buying a HUD home Credit counseling

Integrating Asset Building into Broader Economic Recovery Efforts Other opportunities within ARRA  Education—financial literacy in schools  Green Jobs—entrepreneurship and financial education  Community colleges—individual development accounts Leverage shift in savings perceptions/behavior to make the case for asset-building initiatives  Savings rate has increased from virtually zero to above 4% (New York Times)  Perception that budget adjustments are “a new normal” (Gallup)  Consumers thinking about long-term budgets differently (Pew Research Center)

Resources Finding Funding: A Guide to Federal Sources for Asset-Building Initiatives Making the Most of ARRA: A Guide for Asset- Building Leaders Strategies to Build Assets Among Low-Income Families: Mapping the Field Handout: ARRA funding allocations for DC, MD, and VA State Recovery Websites—  DCrecovery.dc.govrecovery.dc.gov  MD  VAwww.stimulus.virginia.govwww.stimulus.virginia.gov