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Assets for Independence Federal Grants for Individual Development Account Projects

Assets for Independence Federal Grants for Individual Development Account Projects Office of Community Services Administration for Children and Families U.S. Department of Health and Human Services Basics for Applicants -- Overview Asset Building and Individual Development Accounts (IDAs)

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Assets for Independence Federal Grants for Individual Development Account Projects

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

  2. 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

  3. 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

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

  5. Support for Asset Building • Homeownership Support • Small Business Development • Education / Careers • Individual Development Accounts

  6. 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.

  7. IDAs: A Hand-Up To Self-Sufficiency Self- Sufficiency Transform to Assets Save

  8. Overview:Assets for Independence Program

  9. 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

  10. 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

  11. Community Action Agencies Community Development Corporations Community Development Financial Institutions Credit Unions Faith-Based Organizations AFI Projects • Government Agencies • Housing Finance Agencies • State-Wide and Multi-State Associations • United Way Organizations • Workforce Development Agencies • Youth Agencies

  12. 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

  13. AFI Projects –Participant’s Perspective

  14. 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

  15. Kim’s IDA $2000 Savings $2,000 Kim Saves $4000 Matching $2,000 Federal $2,000 Non-Fed $6000 for Home

  16. 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

  17. Bill’s IDA $1000 Savings $1,000 Bill Saves $4000 Matching $2,000 Federal $2,000 Non-Fed $5000 for Small Business

  18. AFI Projects – Details for Grantees / Administrating Agencies

  19. Key Topics • Project Funding – Federal and Non-Federal • Project Reserve Account • IDA Matching Structure • Participant Eligibility Rules • Participant Savings Plan Agreement

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

  21. Project Reserve Account Federal Grant $100,000 PROJECT RESERVE ACCOUNT insured financial institution $200,000 Non-Federal $100,000 (Cash only) Other Resources - $ and In-Kind

  22. 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

  23. Non-Federal Funding – Examples • Financial institutions • Foundations • United Way organizations • Corporations / Employers • Faith-based organizations • State, local and Tribal governments

  24. 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

  25. 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

  26. 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

  27. 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

  28. Typical Grantee Activities – cont’d • 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

  29. AFI Application Requirements / Processes

  30. AFI Application Overview • Annual Review Cycles – November 1, March 15, June 15 • Up to $1,000,000 (average $325,000) • $18,000,000 available in FY 2006 • 50-60 funded projects

  31. 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.)

  32. 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.)

  33. Review Criteria Organizational Profiles (17 pts.) -Capacity - Experience - Identify key staff

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

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

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

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

  38. Review Criteria Project Summary (3 pts.) - One-page summary - Key features

  39. 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)

  40. Submission Requirements • Forms (cont’d) 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)

  41. Submission Requirements • Upcoming Due Date: June 15, 2006 – 4: 30 p.m. EST

  42. 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

  43. Information Sources • AFI Resource Center (202) 401-4626 • AFI Webpage www.acf.hhs.gov/assetbuilding

  44. Let’s Talk Soon James Gatz Manager, Assets for Independence Program Office of Community Services AFIProgram@acf.hhs.gov (202) 401-4626 http://www.acf.hhs.gov/assetbuilding

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