idas in rural communities
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IDAs in Rural Communities. Assets Learning Conference Thursday, September 23, 2010 9:45-11:45 am. Significance of Rural. While the definition of rural is elusive, most estimates have the rural population of the US at between 20-25% of the total American population - PowerPoint PPT PresentationTRANSCRIPT
IDAs in Rural Communities
Assets Learning Conference
Thursday, September 23, 2010
9:45-11:45 am
Significance of Rural
While the definition of rural is elusive, most estimates have the rural population of the US at between 20-25% of the total American population
Generally accepted that rural poverty is higher
Rural programs face unique challenges and opportunities
Rules are not always crafted with rural practitioners in mind
Presenters
Liz Myntti – Lower Columbia Community Action Program http://www.lowercolumbiacap.org/
Cristina Trujillo - California Coalition for Rural Housing www.http://calruralhousing.org/
René Bryce-Laporte – Aspen Institute Community Strategies Group http://www.aspeninstitute.org/policy-work/community-strategies
Community Strategies Group
The Aspen Institute Community Strategies Group (CSG) energizes and prepares people, organizations and collaboratives to do the best for their communities and regions
Helping low- and moderate-income Americans build assets is a cornerstone of our work
Lower Columbia Community Action Program Financial Independence Center The Financial Independence Center is a
program at Lower Columbia CAP dedicated to helping the community get back on their financial feet in trying times.
We offer asset building services like: CAPital Investments Individual Development Account
Program, Earned Income Tax Credit help, Bank On Cowlitz County and FDIC Money Smart Financial Education classes. Free Tax Preparation help.
California Coalition for Rural Housing
CCRH heads the Rural California Asset Development Network. The Network consists of CCRH member organizations who commit to: implementing and administering IDAs in their
region providing supportive financial education, asset-
specific training, and access to banking amongst poor, rural, and immigrant communities.
CCRH serves as the lead agency for accessing the AFI funds and mobilizing technical support for Partners of The Network.
Map of the Session
There are a number of particular challenges that face Rural IDA programs.
We’d like to address seven here: Partnerships Program Design Distance & Transportation Access to Funding Access to Broadband Finding a Financial Institution Partner Reaching Out to the Communities
Partnerships
Virtually NO IDA program can operate without partnerships
Rural IDA programs often have to cover large areas. May need more partners than urban or suburban programs: Recruitment Training Financial Institutions
May be tough to locate partners
Partnerships
Local partnerships are greatest value
Don’t recreate what already exists in your communities
Seek out all aspects of service providers that fit qualified assets
Affordable housing opportunities Educational Institutions Micro Development Organizations (MDO’s) or Small
Business Development Centers (SBDC’s) and now
Workforce Development.
Partnerships
The California Coalition for Rural Housing (CCRH) launched the Rural California Asset Development Network IDA Program (The Network) in 2006 with an Assets for Independence grant from the U.S. Department of Health and Human Services (HHS)
Partnerships
The Rural California Asset Development Network IDA Program, a state-wide "Network” of seven current partners committed to promoting asset building opportunities through Individual Development Accounts.
Current Partners: Amador Tuolumne Community Resources (ATCR) California Rural Legal Assistance (CRLA) * Community HousingWorks (CHW) * Community Housing Opportunities Corporation (CHOC) * South County Housing (SCH) * Self-Help Enterprises (SHE) * Scotts Valley Housing Authority (SVHA)
Program Design
Design varies greatly as communities vary greatly Permissible uses
Rural housing – availability and cost varies, stock quality often questionable
Microenteprise of particular rural importance Education underused Can you find a way to fund car purchase?
Program Design
Match structure: what works to help accountholder successfully acquire their asset?
Financial Education How much? How delivered?
Staffing Depends on partnerships Can your program recruit high quality staff members? Can staff reach accountholders
Program Design
Program Design Strategies will follow contract agreements Identify service area and expand to all outreaching
communities not currently serving IDA’s Financial Education key to all asset building services Money Smart is free and has several delivery methods Seek local faith based and community based
organizations to partner with Fin. Ed. workshops. It’s an easy sell as it is now universally accepted as a key to financial self sufficiently
04/21/23
The Network Model
FundersIDA Account Holders
Main-GranteeIntermediary
CCRH
Project Reserve Accounts
Sub-GranteeIDA Providers
Funders
Project Reserve Accounts
PRHP’s
PRHP’s
Framework
Framework
Distance and Transportation
People in rural communities are used to having to travel great distances. This is an issue with IDA programs in two ways: Customer access to classes and financial
institutions Staff access to customers and partners
Low-income people are most likely to be your customers, but also most likely to have poor access to reliable transportation
Need local partners!
Distance and Transportation
Money Smart – Evening and morning – CD- CBI (computer based instruction) – can save or print certificate for all sessions with 80% proficiency
Applications available on line
Intakes have been conducted by phone with documents in front of accountholder and intake staff. After signatures, faxed or mailed or scanned to program.
Client savings accounts have been established with their financial institution and monitored monthly electronically or by mail. All match held at agency financial institution.
Distance and Transportation
CCRH does not face the great distance and transportation challenges because its project design includes affordable housing multi-family sites.
The IDA partners provide most of their constituent services at the multi-family sites.
Access to Funding
A challenge for all, but fewer local funding options in rural communities. Be imaginative!
Look at potential new partners Community colleges Community foundations
Networks/coalitions provide an opportunity to access to maximize funding and minimize in house expenses
Both in terms of funding and staffing – integrating IDAs into existing programs in highly beneficial
Access to Funding
Greatest current challenge Need to be creative in seeking match funders,
match their interests, not yours (Homeownership, education, small business)
Need to use creative staffing, as IDA admin alone will not sufficiently staff case managers. Partner with programs, like TANF WorkFirst or WIA. Meets the earned income requirement and staff can provide these next steps to self sufficiency
04/21/23
The Network Model
FundersIDA Account Holders
Main-GranteeIntermediary
CCRH
Project Reserve Accounts
Sub-GranteeIDA Providers
Funders
Project Reserve Accounts
PRHP’s
PRHP’s
Framework
Framework
Access to Broadband
In some cases, access to broadband can ease the challenges of distance.
In many rural communities, access to high-speed internet is limited or not available at all
This is important given the commerce and education that takes place over the internet
Large numbers of rural homes lack high-speed internet access
Access to Broadband
Believe that those not within a broadband service area, are OK with other forms of communication and service delivery. May accommodate by traveling to their areas of commerce, e=where they shop, not where they live.
Access to Broadband
CCRH customers do not face challenges with Broadband as most of their partners provide access to computers and internet at their multi-family developments.
Finding a Financial Institution Partner
Every IDA program must have a financial institution partner
Can be important to have a variety of partners in each town
Rural financial partners may have more connection with community, but the benefit of holding accounts is not the same
Challenge to track figures and results Also have multiple agreements
Finding a Financial Institution Partner
Seek community friendly partners Sell the market share of accounts Sell point of accountholder ability to move on to
additional product lines
04/21/23
The Network Model
FundersIDA Account Holders
Main-GranteeIntermediary
CCRH
Project Reserve Accounts
Sub-GranteeIDA Providers
Funders
Project Reserve Accounts
PRHP’s
PRHP’s
Framework
Framework
Reaching Out to the Communities
Marketing in a rural community can be relatively cheap
Word of mouth is the best form of advertising--- with only one degree of separation from accountholder or service providers
Over time, easier to get deep market penetration
Reaching Out to the Communities
Need to take marketing to the service areas Utilize existing organizations that have an
area of interest with your qualified assets, let them promote your opportunity
Create press releases and submit to all print media, whether the story involves local customers or not. Get the story across even if they don’t recognize the face or name.
Reaching Out to the Communities
Use PSA’s (public service announcements)– they are free at most radio stations for non-profit events and news
Get on the band wagon for local, state and national events: April Financial Literacy month – we have a
declaration from our Washington governor and city council
We use Cowlitz Saves in conjunction with Washington and America Saves Week
Reaching Out to the Communities
Use your existing client base Utilize partnerships Use existing marketing materials and
programs
Questions?
Other Resources
Assets for Independence Program http://www.acf.hhs.gov/programs/ocs/afi/
index.html IDA Resources
http://idaresources.org/ IDA Network
http://www.cfed.org/programs/idas/ Lower Columbia CAP/CBS News Story
http://www.cbsnews.com/stories/2008/11/12/eveningnews/main4597318.shtml
Contact Information
Liz Myntti [email protected]
Cristina Trujillo [email protected]
René Bryce-Laporte [email protected]