Assets for Independence Federal Grants for Individual Development Account Projects

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Assets for IndependenceFederal Grants for
Individual Development Account Projects
Office of Community ServicesAdministration for
Children and FamiliesU.S. Department of Health
and Human Services
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Basics for Applicants -- Overview

• Asset Building and Individual Development
  Accounts (IDAs)
• Assets for Independence Program
• AFI Projects Overview
• Apply for AFI Funding in FY 2006

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Asset Building

• Few people have ever spent their way out of
  poverty. Those who escape do so through saving
  and investing for the long-term.
• Michael Sherraden
• Center for Social Development

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Economic Assets Matter

• Stronger, Healthier Families
• Enhanced Self-Esteem
• Long-term Thinking and Planning
• More Community Involvement
• Hope for the Future

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Support for Asset Building

• Homeownership Support
• Small Business Development
• Education / Careers
• Individual Development Accounts

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Individual Development Accounts (IDAs)

• Matched restricted bank or credit union savings
  accounts for individuals and families with low
  incomes.
• Enable clients / participants to save earned
  income on a regular basis, receive matching funds
  to grow the savings, and acquire an economic
  asset for the long term.

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IDAs A Hand-Up To Self-Sufficiency
Self- Sufficiency
Transform to Assets
Save
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OverviewAssets for Independence Program
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Assets for Independence Program

• Federal grant program that supports 5-Year AFI
  Projects that enable participants to ...
• Learn about financial and consumer issues
• Save in IDAs
• In order to
• - acquire a first home
• - access higher education or training and/or
• - start or support a small business

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AFI Projects

• 350 projects throughout the nation
• Multi-purpose non-profits that provide services
  for low-income families
• Public / Private partnerships including State,
  local or Tribal governments
• Multi-site networks
• Financial institution partners

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AFI Projects

• Community Action Agencies
• Community Development Corporations
• Community Development Financial Institutions
• Credit Unions
• Faith-Based Organizations

• Government Agencies
• Housing Finance Agencies
• State-Wide and Multi-State Associations
• United Way Organizations
• Workforce Development Agencies
• Youth Agencies

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AFI Clients / Participants

• 34,000 IDA accounts and growing
• 80 of participants are women
• Many single parent households
• 46 African American 28 White 16 Hispanic
• IDA is first savings account for most
  participants

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AFI Projects Participants Perspective
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EXAMPLE KIM

• Kim 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
• Kim saves 2,000 55 per month over 3 years

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Kims IDA
2000 Savings
2,000 Kim Saves
4000 Matching
2,000 Federal
2,000 Non-Fed
6000 for Home
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EXAMPLE BILL

• Bill is looking to start a new business
• He needs 5,000 in capital
• Financial Education, debt counseling, training in
  operating a business, and a business plan
• Match rate of 4 for every 1 saved in his IDA
• Bill saves 1,000 42 per month over 2 years

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Bills IDA
1000 Savings
1,000 Bill Saves
4000 Matching
2,000 Federal
2,000 Non-Fed
5000 for Small Business
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AFI Projects Details for Grantees /
Administrating Agencies
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Key Topics

• Project Funding Federal and Non-Federal
• Project Reserve Account
• IDA Matching Structure
• Participant Eligibility Rules
• Participant Savings Plan Agreement

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Project Funding

• Five Year project grants
• Non-Federal cash equal to or greater than the
  Federal grant amount

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Project Reserve Account

• PROJECT RESERVE ACCOUNT
• insured financial institution
• 200,000

Federal Grant 100,000
Non-Federal 100,000 (Cash only)
Other Resources - and In-Kind
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Project Reserve Account Uses

• At least 85 to match IDA savings
• Up to 13 for financial education and other
  activities
• At least 2 for data collection

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Non-Federal Funding Examples

• Financial institutions
• Foundations
• United Way organizations
• Corporations / Employers
• Faith-based organizations
• State, local and Tribal governments

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IDA Matching Structure

• IDA Savings Match Rates can range from
• 1 match for 1 earned income saved to
• 8 match for 1 earned income saved
• Maximum Federal Contribution
• 2000 per individual
• 4000 per household

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Participant Eligibility

• TANF eligible OR
• EITC eligible or annual household income less
  than twice poverty (about 40,000 for family of
  four) and
• Household net worth less than 10,000 excluding
  value of a residence and one car
• Administrating agencies may apply additional
  eligibility rules

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Participant Savings Plan Agreement

• Amount to be saved / Schedule of deposits
• Asset to be purchased
• Match rate per 1 of earned income saved
• Financial education / Financial literacy courses
• Debt management counseling
• Asset-specific training
• Contingency plans

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Summary Grantee Activities

• Create project reserve account
• Recruitment / outreach / marketing to inform
  community about the program
• Enroll participants and develop savings agreement
• Provide financial education and other services

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Typical Grantee Activities contd

• Work with the client to open the IDA
• Assist the client throughout the savings period
• Allocate matching funds as the client saves
• Provide asset-specific training and preparation
• Assist with the asset purchase
• Collect data and report to OCS

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AFI Application Requirements / Processes
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AFI Application Overview

• Annual Review Cycles November 1, March 15, June
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• Up to 1,000,000 (average 325,000)
• 18,000,000 available in FY 2006
• 50-60 funded projects

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Application Review Criteria

• Approach (50 pts.)
• Organizational Profiles (17 pts.)
• Results or Benefits Expected (10 pts.)
• Objectives and Need for Assistance (10 pts.)
• Budget (5 pts.)
• Evaluation (5 pts.)
• Summary (3 pts.)

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Review Criteria Details

• Approach (50 pts.)
• - Work Plan and Timeline (25 pts.)
• - Tax Services (3 pts.)
• - IDA Match Rate (5 pts.)
• - Innovation (5 pts.)
• - Partners / Collaborations (12 pts.)

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Review Criteria

• Organizational Profiles (17 pts.)
• - Capacity
• - Experience
• - Identify key staff

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Review Criteria

• Results Expected (10 pts.)
• - Clear outcome and output statements
• - For measuring progress

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Review Criteria

• Objectives /
• Need for Assistance (10 pts.)
• - Goal and Objectives Statements
• - Needs for Assistance and Strengths

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Review Criteria

• Budget and Justification (5 pts.)
• Clear
• Reasonable
• Realistic
• Commitment of Non-federal cash contribution

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Review Criteria

• Evaluation (5 pts.)
• - Electronic information collection
• - Commitment to participate in the national AFI
  evaluation
• - Providing timely data to OCS

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Review Criteria

• Project Summary (3 pts.)
• - One-page summary
• - Key features

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Submission Requirements

• Format
• Up to 40 pages plus attachments
• Forms
• Standard Application form (SF-424)
• Standard Budget form (SF-424A)
• Standard Assurances form (SF-424B)

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Submission Requirements

• Forms (contd)
• Certification regarding Lobbying
• Disclosure of Lobbying Activities (SF-LLL)
• Certification regarding Environmental Tobacco
  Smoke
• Proof of Nonprofit Status
• Proof of Designation as CDFI or Low-Income
  Designated Credit Union (if applicable)

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Submission Requirements

• Upcoming Due Date
• June 15, 2006 4 30 p.m. EST

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Submission Requirements

• Paper format
• OCS Operations Center
• Assets for Independence Program
• 1515 Wilson Blvd., Suite 100
• Arlington, VA 22209
• Electronic format
• http//www.Grants.gov

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Information Sources

• AFI Resource Center [phone]
• AFI Webpage www.acf.hhs.gov/assetbuilding

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Lets Talk Soon

• James Gatz
• Manager, Assets for Independence Program
• Office of Community Services
• AFIProgram_at_acf.hhs.gov
• [phone]
• http//www.acf.hhs.gov/assetbuilding