What is an IDA? Asset Choices. First Home. Small Business. Post Secondary Education. Matching

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1 What is an IDA? COOK INLET TRIBAL COUNCIL, INC. EMPLOYMENT & TRAINING SERVICES DEPARTMENT INDIVIDUAL DEVELOPMENT ACCOUNTS Assets for Independence Demonstration Program (AFIA) A 5 year grant from the Administration for Children and Families to: help low income individuals and families develop the skills to have a healthy financial future AND purchase an Asset in the process WITH the incentive of matching savings dollars Asset Choices First Home Small Business Post Secondary Education CITC is matching 5:1 Matching The maximum you can match is 8:1 per the AFIA grant The maximum Federal $ that a participant can receive is $2000 for an individual or $4000 for a household You can match each asset differently or consider a tiered match. 1

2 Who is Eligible for the CITC IDA? PARTICIPANT REQUIREMENTS Must be Alaska Native or American Indian adult, or a legal guardian of Alaska Native or American Indian children. Must reside in the Municipality of Anchorage Must be employed full-time, part-time or self-employed Be eligible for TANF OR the Earned Income Credit, OR have income the previous year that is less than 200% of the Federal Poverty Guidelines AND have no more than $10,000 of assets, excluding a primary dwelling and one vehicle Open an IDA savings account Make monthly savings deposit of at least $10 per month or up to $125 Do not miss more than 3 consecutive deposits during the program or you can be withdrawn from the program Participate in Financial Literacy Classes Complete the asset-specific courses for the selected asset CITC IDA PARTNERS ALASKA MENTAL HEALTH TRUST Alaska Mental Health Trust WELLS FARGO BANK COOK INLET HOUSING AUTHORITY CONSUMER CREDIT COUNSELING SERVICES OF ALASKA Providing 100% of AFIA required match funds Providing technical assistance Seeking funding for additional savings goals 69% AK Mental Health Trust Beneficiaries Served by the IDA Program UNITED WAY 2

3 WELLS FARGO BANK Will open IDA savings accounts with a $25 minimum and no monthly fees Have available to us the Hands on Banking program as a financial literacy education tool and provide guest speakers for Financial Fitness Classes Assist IDA participants to prepare for home ownership Provide CITC an additional source of funds to work with participants to save towards purchasing vehicles to assist with transportation needs COOK INLET HOUSING AUTHORITY Will provide IDA participants access to the Home Buyer Loan Program Will contribute up to $4000 for closing costs for IDA participants (who are eligible for their homeownership program) CONSUMER CREDIT COUNSELING SERVICE OF ALASKA Will meet with participants to determine the status of their credit reports and establish if credit repair or debt management is needed. They will help participants establish a budget that will encourage savings and any debt repayment. United Way CITC participates in the the Asset Building Coalition that has implemented small IDA programs across the State Provide Technical Assistance 3

4 Stats and Successes Cook Inlet Tribal Council, Inc. 116 IDA savings accounts have been opened at Wells Fargo through August 2006 IDA Specialist 83 for Home Ownership 12 homes have been purchased to date 11 for Small Business 6 small businesses Janitorial, Inventor, Massage Therapy, Home Remodeling, Web-based FSBO 22 for Education Students currently studying law, accounting, social work, engineering, business, marketing Kimberly Leeper 3600 San Jeronimo Anchorage, AK (907) Direct (907) Front Desk kleeper@citci.com EITC Outreach Lesson s Learned CITC offers FREE annual on-line tax filing workshops to assist individuals to file taxes, learn about the EITC and all other credits for which families may be eligible. For 2005 CITC assisted 48 tax filers and helped them to claim $13, in Earned Income Tax Credit. Partnerships are essential Keeping saver s motivated is key to successful programs Setting realistic outcomes for your program and your savers is important Financial Literacy offered to accommodate participants schedules Need to begin looking at sustainability from the beginning 4

5 Thanks for Coming! 5