Designing Your IDA Program

1
Designing Your IDA Program

• Goal of Session Identifying key elements of an
  AFI-IDA Program, Design Issues, and Suggested
  Practices

2
Program Goal

• What do you want for Your Community From the IDA
  Program?
• What will your Community Look Like as a Result of
  a Successful Program?
• Objectives How your program will help reach the
  Goal?

3
Organizational Capacity

• Should Your Organization Manage the IDA Program?
• Models May Differ for each, No Master Model, What
  works for your community
• Management and Board Commitment, How Strong
• Match and Administrative Funding Issues

4
Target Population

• Good Candidates for Home Ownership
• AFI prefers defined geographical area
• Income and Asset Limits
• Credit Issues
• Internal Applicants vs External Applicants
• Other Target Groups

5
Marketing and Recruitment

• Obstacles to Recruitment
• Too Good to Be True
• Lack of Hope and Faith
• Experienced Past Financial Failures
• Cost Restraints in Marketing
• Effective Methods
• Word of Mouth
• Success Stories
• Existing Client Group Referrals

6
Training and Support

• Economic Literacy
• Meat and Potatoes of IDA
• Behavioral and Motivational Change
• Timeframe for Opening Accounts
• Structure of Classes
• Presenters Important
• Food and Childcare provisions
• Strong Emphasis on Expenditure Tracking and
  Budgeting

7
Home Ownership Training

• Provide upon completion of Economic Literacy,
  Close to Purchase
• One on One Counseling Purchase Specific
• Awareness of Predatory Lenders
• Post Purchase Training
• Home Maintenance
• Re-Financing
• Equity Lines

8
Other Support

• Success Coaches / Case Management
• Volunteer Mentors
• Peer to Peer
• Successful Homeowners Inspire Current Savers
• Faith Based Organizations
• Other Community Resources

9
Account Structure

• Savings Issues
• Total Amount
• Monthly Minimum and Maximum
• Lump Sum vs Regular Savings (EITC)
• Savings Time Frame
• Time Frame to Purchase Home
• Earned Income
• Missed Deposits
• Leave of Absence and Reinstatement
• Limited Access to Savings

10
Account Structure

• Matching Fund Issues
• Match Rate
• Parallel Accounts
• Transfer into Reserve Account
• Transfer Back to Account for Drop Outs

11
Withdrawal Policy

• Emergency Withdrawal Policy
• Preventing Fraud
• Payment Not to Participant but to Vendor
• Provision of Adequate Notice for Withdrawals
• Penalties for Unauthorized Withdrawals
• Plan for Repayment of Withdrawals

12
Evaluation

• Continuous Evaluation
• Participant Satisfaction and Feedback
• Retention Rates
• Partners and Agency Feedback
• Funders Evaluation
• Staff Self-Evaluation
• AFI National Evaluation and Record Keeping
• Weed and Seed Evaluation

13
Funding Accounts

• AFI Requires11 Non Federal Match
• CDBG only federal funds that can be used to match
  AFI
• AFI Requires 85 match 15 admin.
• AFI Admin not close to covering admin cost
• Other federal funds can be used as a supplement
• Fee for Service?

14
Possible Funding Sources

• Corporate
• Foundations
• Churches
• State and Local
• CDBG
• HOME
• Housing Finance
• TANF