idas in rural communities

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


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!


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.


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



CCRH



Funders


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



CCRH



Funders


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


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.


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


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]

idas in rural communities

Documents