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:

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 December 2006 begin saving $100 per month June 2007 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. Achieved savings goal! December 2007 saves another $600, earns another $1, months October 2008 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 for Home $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, $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 June 2008 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 months+ 8 months December 2009 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 for Education $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 FUND insured 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

17 Implementing Your IDA Project: Program Elements Outreach and Recruitment Case Management Financial Education Asset-Specific Education AFI 2 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 15 th March 25 th June 25 th

Contact Information AFI Resource Center