April 14 2011 Ycabc Minutes

YCABC Minutes
April 14, 2011

Present: Craig Nolte (Federal Reserve Bank of San Francisco), Susan Wilson (Office of Rural and Farmworker Housing), Adam Coe (Yakima Federal Savings and Loan), Leanne Antonio (YFSL), Sylvia Martinez (IRS), David Gilbreath (YCABC), Kimmy Mauldin (VISTA for YCABC), Dixie Palmer (CCCSYV/Apprisen Financial Advocates), Bill Stevens (AARP Tax Aide), Sue Ford (US Bank), Chris Link (OIC), Michele Besso (Northwest Justice Project), Bryan Ketham (Catholic Charities Housing Services), Esperanza Lemos (College Success Foundation), Marty Miller (ORFH), Chuck Hundley (VISTA for Noah’s Ark), Geoff Baker (Generating Hope)

Call to Order: Dave called the meeting into order approximately at 7:38 AM


Agenda: Approved

Minutes Review/Approval: Approved

EITC Committee Update: Tax season is coming to a close; season has gone smoothly. We have gotten very close to the same numbers we had last year. April 18th Wrap Up Tax Day at Post Office on Washington Ave and 3rd Ave (5:30 to 8pm). Volunteers have been wonderful.

Bank On Yakima Committee Update: Sue Ford is now the new chair. WA Bank On will hopefully be kicked off around July. We need to pick up steam. Yak Fed is now with us and HAPPO is no longer involved, therefore, we have new brochures. Working on re-energizing program, we are trying to get into the media more. Incentive program will be launched mid-April/May. If their account is open under Bank On and is opened for 60 days, we will give them $50. We are heavily marketing to both the consumer and the agency because we can help both. We also would like to present to different financial institutions so if anyone knows of a place where we could do so, please let us know.

Budget Update: We receive funding from 3 sources (Commerce, WalMart, and HHS grant). Commerce needs to be exhausted by end of June. We will be completely spent by June 30th. HHS grant is a federal grant and we are still waiting for that. It will be for the incentive program and financial education support.
Funding for asset building will be cut but it will continue to be supported by the government.
Financial literacy education is a requirement for our grants. We are now looking at offering incentives for just attending the financial education classes. This incentive is separate from the Bank On incentive. If people want to open a Bank On account after taking this class, they are able to receive the Bank On incentive money in addition to the financial education incentive money. Introduced by Dave, moved by Michele Besso, Esperanza second. Done!

100 Jobs for 100 Kids: This event is on April 18th from 1—5 pm at the Southeast Community Center. Organizations support a kid with $685 and a 6 week job opportunity. This even is meant to help prepare the students to learn how to properly interview, dress for success, build a resume, etc. Kimmy will have a booth to provide financial education opportunities and information. If you want to volunteer, email gro.amikay|atsivcsc#gro.amikay|atsivcsc (Doug Lyons, VISTA for Citizens for Safer Communities).

Money Smart Week: April 23—30th. This week has been set aside to nationally recognize the importance of financial education and literacy. We want to schedule more financial education classes and presentations to social services during this week. If you have any ideas for this, email Kimmy at gro.cbacy|nidluam.k#gro.cbacy|nidluam.k

Legislative Update: Budget is still tentative in what will occur. Payday lending is still being debated. We are hoping for a change in the bill so that they lenders will be capped. This bill is not being near as supported as when it first started and will most likely die. Housing Counseling is on the chopping block in government budget anaylsis.

Strategic Planning Meeting: The Coalition needs to meet before June, on May 10th from 11AM—1PM at People For People. We will be discussing short and long term goals as well as figuring out a sustainability plan without VISTA support.

Other Business/Announcements: Ask if anyone would be willing to talk about Bank On at Habitat class—Sue Ford said she would. ABC Annual Conference in Yakima, June 21-22nd, be there.
Dave asks for ad hoc committee to further research IDAs. Marty Miller, David Hacker, Bryan Ketcham (chair), Adam Coe (financial advisor). Craig Nolte will be an advisor as well.

Craig Nolte—

Individual Development Accounts

We could also get Rebeca Potasnik to come talk about IDAs for she has run IDA programs before

IDAs—match savings program. Helps low income people reach asset building goals such as buying a house or gaining an education or microenterprise. Cap is around $7500 (including matching money and AFI money). Once a year you can apply for AFI money. Time is up for this soon which gives us more time to plan for next year.

• Savings of eligible participants are matched by private and public institutions (typical is 2:1)
• IDAs are managed by community organizations, and the accounts are held at local financial institutions partners.
o Financial education is key for this program to succeed with each participant. When people save up their money for a very personal specific goal, they gain so much more than that mere object. Confidence, self-pride, and satisfaction grows exponentially.
• Participation includes financial education to improve credit, to create a budget and savings schedule to develp long term management skills
• IDAs are a tool not a stand-alone program; they are used in conjunction with existing self-sufficiency and asset building programs.

• Step 1: Client completes application
• Step 2: Client submits certain information to verify eligibility
• Step 3: Administrator/case manager acquires a credit report
• Step 4: With the assistance of client’s case manager, client completes a spending plan and/or budget; if they don’t meet the dates of payment twice, they are out. IDAs help develop self-discipline.
• Step 5: Client opens a savings account at a designated financial institution and continue to save at agreed monthly amount until savings goal is met.
o We need to speak with several banks so that there aren’t too many profiles with each bank. It is very burdensome. However, if a CRA sees that the bank is supporting IDAs, it is a huge positive for the bank.
• Step 6: Client begins financial literacy classes and works on credit repair issues if applicable
• Step 7: Client begins asset specific training. Financial education training and asset training.
• Step 8: Client purchases asset (home, education, or micro-enterprise).
o Money never goes back to the client. Always goes to the people that are selling the asset

Key IDA Partners:

o Provide oversight, operation and maintenance of the program
o Maintain the management information system
o Establish and maintain reserve fund account
o Coordinate program evaluation
o Don’t have to provide education, homeowner, or small business counseling; they just provide the budget/plan counseling and connections for classes and financial institutions for the client contact (i.e. YCABC through United Way)
 Case Management: Someone who needs to manage the program, seeing who has paid, who is dropping, who is doing what. But case management for each individual person would be someone else
 OIC, Catholic Charities Housing Services—Yakima, Community Action
 Book keeping for agency is not that bad. Some money from AFI goes to the agency for doing the bookkeeping but it is not that enough for standalone.

Financial Institutions:
o Offer IDAs
 Makes financial institutions perfect for providing funding since they are already offering IDAs
o Train internal staff on how to manage IDAs
o Provide dual statements—accountholder and administrator
 Too many financial institutions offering program could produce inefficiencies
 US Bank good place to start

Community Based Org
o Referrals
o Help market program
o Help gather funds for match
 If we use AFI money, we have to find a match. Some of the AFI can be used for administrating purposes but the rest needs to be supported by a match, but it cannot be federal money. It could be state or private but not federal money. Grant writing.

• Foundations
• Corporations
• Individuals
o How much matching money should we try to start with: match highest would be $4500 per person.

Craig will post PowerPoint on website and send us the link.

Adjourn: 8:48AM; 9:30AM meeting at PFP, May 10th