Savings for Working Families Act: Potential Impacts on the NH Statewide IDA Collaborative and other IDA Programs Chris LeBrun New Hampshire Community Loan Fund

Introduction Background of the New Hampshire Community Loan Fund Overview of the NH Statewide IDA Collaborative Model Potential Impacts from the Savings for Working Families Act

Background NHCLF: Mission To serve as a catalyst, leveraging financial, human, and civic resources to enable traditionally under-served people to participate more fully in NH economy.

Provide loans, capital, and technical assistance Complementing and extending the reach of conventional lenders and public institutions; and Bringing people and institutions together to solve problems Background NHCLF: Mission

Background NHCLF: Program Areas Affordable housing Manufactured Housing Park Program Home Of Your Own/Single Family Special Initiative Community facilities Child Care Facilities Non-Profit Facilities Economic opportunity MicroCredit-NH Individual Development Account

NH Statewide IDA Collaborative AFIA-funded Statewide IDA Collaborative designed to help eligible low income workers of New Hampshire achieve the dream of homeownership, post-secondary education or small business startup/development.

Eligibility and Uses Eligibility –200% Poverty –EITC Eligible –TANF Eligible Savings Categories –Homeownership –Post-Secondary Education –Small Business Startup/Development Pilot Savings Categories –Home Repairs –Vehicle Ownership

Match Structure 3:1 match $25/month minimum savings $100/month maximum savings $1,000/year savings cap $2,000 lifetime savings cap $6,000 maximum match per individual

Organizational Structure 20 Community Partners – Front End NHCLF- Backroom Operations Financial Institutions – Hold IDA Accounts Other Partners – Provide training and referrals

Community Partners: Front-end Serve the eligible population (recruitment) Facilitate IDA Application Process/Paperwork One-on-One Counseling Access to Financial Literacy & Asset specific Training Troubleshooting with NHCLF

NHCLF – Backroom Operations Raise Match Funds Provide Technical Assistance and Troubleshooting with Community Partners Facilitating the IDA Accounts (w/Financial Inst.) Tracking Savings, Match & Training Providing Match Savings Statements Central Coordinating Agency of all Partners

Financial Institutions Provide access to IDA Accounts with Specific Features Custodial No Fees & Interest Earning Duplicate Statements (1 to client, 1 to NHCLF) Provide Funding for the IDA Collaborative Provide or work with Community Partners to offer/enhance Financial Fitness Training

Other Partners Other Partners include: Cooperative Extensions, Homebuyer Education Centers, Higher Education Assistance Centers Provide Financial Fitness and/or Asset Specific Training Work with Community Partners to enhance/develop curriculums

NH Statewide IDA Collaborative highlights…. Each Community Partner holds “ownership” over their Program Program rules/updates are discussed at Quarterly Community Partner Meetings NHCLF Provides no operational dollars to the partners to run the Program After 2 years… –428 Total Enrolled –333 Actively Enrolled 288 Home 16 Education 18 Business 9 Other –30 Graduates of Homeownership (as of 10/28) –$296, Saved –$767, Matched –$100, Paid Out

Savings For Working Families Act: Potential Impacts Characteristics 1:1 Match1:1 Match Up to $500 match per yearUp to $500 match per year No restriction on source of depositsNo restriction on source of deposits Maximum of $1,500 in total depositsMaximum of $1,500 in total deposits Potential Impacts Probably not be enough to help put people into homes in high cost areasProbably not be enough to help put people into homes in high cost areas Could provide additional funds for participants in existing IDA ProgramsCould provide additional funds for participants in existing IDA Programs Allows greater access to the disabled community without the earned income requirement of AFIAAllows greater access to the disabled community without the earned income requirement of AFIA More flexibility around depositingMore flexibility around depositing

Savings For Working Families Act: Potential Impacts Characteristics Eligibility criteria based on AGI from previous years tax returnEligibility criteria based on AGI from previous years tax return Only for ages 18 – 60 (not including full-time students)Only for ages 18 – 60 (not including full-time students) Potential Impacts Easy to determine eligibilityEasy to determine eligibility Eligibility income standards are similar to AFIA for families of 4 or lessEligibility income standards are similar to AFIA for families of 4 or less May exclude some large familiesMay exclude some large families Does not allow for Youth IDA’sDoes not allow for Youth IDA’s Doesn’t allow for full-time students to save for educationDoesn’t allow for full-time students to save for education Allows more than one person in a household to enrollAllows more than one person in a household to enroll

Savings For Working Families Act: Potential Impacts Characteristics Having the Qualified Financial Institution administer and track the savings & match and meet the reporting requirements.Having the Qualified Financial Institution administer and track the savings & match and meet the reporting requirements. Potential Impacts CBO’s would still be looked to provide the outreach, training, counseling and case managementCBO’s would still be looked to provide the outreach, training, counseling and case management –Allows CBO’s to do what they do best, in many cases –Helps relieve some of the burden of administering an IDA Program Allows for portability of IDA’sAllows for portability of IDA’s

Savings For Working Families Act: Potential Impacts Characteristics Having the Qualified Financial Institution administer and track the savings & match and meet the reporting requirements.Having the Qualified Financial Institution administer and track the savings & match and meet the reporting requirements. Potential Impacts Creates broad-based availability for IDA’sCreates broad-based availability for IDA’s Could create hardship on CBO’s who may not have the capacity to take on additional clientsCould create hardship on CBO’s who may not have the capacity to take on additional clients

Savings For Working Families Act: Other Considerations Capacity Quality vs. Quantity Partnerships What are our goals? –Savings habits –Training/Education –Asset Accumulation High-touch Can this be done as a stand-alone or must it be used in tandem with existing IDA Programs? Will it be as easy as we think to coordinate both SWFA and AFIA/Other IDA’s?