Individual Development Accounts for Immigrants and Refugees

1
Individual Development Accounts for Immigrants
and Refugees

• Strategies, special considerations, and resources
  for practitioners

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Diversity in Kansas and Missouri

• In Kansas, 5 of the total population is
  foreign-born 3.3 is non-citizen. In Missouri,
  these figures are 2.7 and 1.6, respectively. In
  some parts of these states, however, the new
  American population is considerably larger.
• Only 7 counties in Kansas and 5 in Missouri
  failed to see increases in the Hispanic origin
  population category between 1990 and 2000. 40
  counties in Kansas and 56 in Missouri saw their
  Latino populations increase by 100. In
  Missouri, 3 counties saw growth of more than
  1000.

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Starting with the Basics

• What is an immigrant?
• An immigrant is a foreign-born individual who has
  been admitted to reside permanently in the United
  States as a Lawful Permanent Resident (LPR).
• Many people who are considered immigrants are
  actually non-immigrants under law students,
  tourists, temporary workers

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Starting with the Basics

• What is a refugee?
• A refugee is a person outside of the U.S. who is
  granted protections on the grounds that he/she
  fears persecution in his/her homeland (based on
  race, religion, social group membership,
  political opinion, national origin).
• What is an Asylee?
• An asylee is a person who comes to the U.S.
  because of a similar fear and is granted similar
  protections after arrival.

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Why IDAs with immigrants and refugees?

• Fights Poverty
• The poverty rate among native born Americans is
  11.2.
• The poverty rate for non-citizen immigrants is
  21.3.
• Builds Stable Connections to New Home
• Provides an anchor and buffer for recent arrivals
• Orients to U.S. Financial System
• Same Positive Outcomes as Other Participants

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IDA Programs and Policy with new Americans
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Special Considerations in Program DesignLanguage

• Most adults need approximately 4-5 years to
  become proficient in English. During this time
  of language acquisition, they will need services
  in their native languages and/or use of
  interpreters.
• Translated documents should be tested with native
  speakers. Interpreters competency should be
  independently verified.
• Many immigrants have low literacy levels in their
  native language, making oral communication
  essential.

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Special Considerations in Program DesignStatus

• Many immigrants and refugees experience times of
  being out of status in respect to their
  immigration permission. This affects
• Work authorization
• Eligibility for public benefits
• Willingness to engage with agencies
• IDA programs should, wherever possible, utilize
  alternative documentation and verification
  processes to facilitate immigrant participation.

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Special Considerations in Program DesignCulture

• An IDA program or financial literacy class may
  have many diverse cultures represented, all of
  which may be different than that of the
  instructor.
• Discussions about money are particularly
  culturally-sensitive for many people.
• Seek multicultural staff, but also build program
  on life experiences, allow for flexibility, learn
  from participants as experts.

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Special Considerations in Program DesignCulture
(2)

• Newcomers often need to build, rather than
  repair, a credit history.
• Unfamiliarity with our consumer culture requires
  learning about scams how to advocate for self.
• Comfort level can be raised through exposure to
  banking professionals (as volunteer trainers or
  guest speakers).

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Special Considerations in Policy Development

• Wide range of allowable assets
• Sensitivity to status, documentation
• Flexible timeline for purchases
• Continue protections against public charge
• Additional administrative dollars for
  translations, multilingual staff

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New Americans and Asset Investments
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Immigrants/Refugees and Entrepreneurship

• Often strong tradition of self-employment, but in
  very different business culture.
• Culturally and linguistically appropriate
  business assistance
• Possible community resistance to
  minority/non-citizen businesses
• Often fails to lift families out of poverty,
  particularly for large extended families

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Immigrants/Refugees and Postsecondary Education

• Some immigrant categories considered foreign
  students despite years of residence in a state
• Language challenges with entrance exams and
  coursework
• Difficulty transferring credits from foreign
  institutions
• Cultural isolation for new Americans at some
  institutions

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Immigrants/Refugees and Homeownership
Home is sweet in all languages!
68
Homeownership Rate Among Native Born
66
Homeownership Rate Among Naturalized Citizens
32
Homeownership Rate Among Non-citizens
U. S. Census Bureau 1997
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Immigrants/Refugees and Homeownership
But once I can say it in your language
73
Homeownership Rate Among Naturalized Citizens Who
Entered Before 1978
68
Homeownership Rate Among Native Born
Homeownership Rate Among Non-citizens Who Entered
Before 1978
53
U. S. Census Bureau 1997
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Immigrants/Refugees and Homeownership
Growth of the homeownership/population ratio by
Race (1996 - 2001)
Based on 2000 Census
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Immigrants/Refugees and Homeownership

• May or may not have tradition of private property
  ownership
• Multigenerational households and shared ownership
• Property maintenance, codes, safety
• Stigma of indebtedness
• Prejudice and discrimination in housing markets,
  lending

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Immigrants/Refugees and Homeownership
Barriers/Strengths

• Victims of bad business practices
• Lack of consumer skills
• No credit history
• Employability issues
• Access to cash
• Strong extended family relations
• Less consumer oriented than American culture

• Motivated determined
• Strong survival skills

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IDA Outcomes with Immigrants

• El Centros program serves, in partnership with
  HAFS, 131 individuals, of whom 88 are recent
  Latino immigrants. Average income is 26, 594
  for immigrant participants.
• To date, these immigrants have saved, with match,
  158,815 (between January 2002 and April 2003).
• 41 of these immigrants are saving for
  homeownership 8 for post-secondary education, 14
  for a small business, and the rest for multiple.

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IDA Outcomes with Refugees
From May 2000 to March 31, 2003
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Resources to get started

• Melinda Lewis, El Centro, Inc.
• 913-677-0100 x.119 mlewis_at_elcentroinc.com
• Web Resources about Immigrants
• http//www.immigrationforum.org/
• http//www.nilc.org/
• http//www.ncsl.org/programs/immig/
• http//www.ilrc.org/
• http//www.cliniclegal.org/

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More Resources

• Betsy Slosar
• [phone] x156, slosarb_at_intlinst.org
• Web Resources about Refugees
• http//www.refugeesusa.org
• http//www.ised.org
• http//www.irsa-uscr.org
• www.unhcr.ch
• www.acf.hhs.gov/programs/orr