Matched Savings to Help 880 Ohioans
Ohio CDC Association and 17 partnering organizations from around Ohio formed the Ohio IDA Consortium recently, to apply for $1,000,000 from The U. S. Department of Health and Human Services. On September 29, 2002 the Consortium was awarded the funding to be used as a carrot for one million in non-Federal matching funds. The two million dollars in combined funds will be used to match savings accounts for low-income working families. The matched savings accounts, called Individual Development Accounts, go toward owning a home, starting a small business or receiving a higher education.
(PRWEB) October 26, 2002
$1 million grant award will help 880 Ohioans achieve the American Dream.
Ohio CDC Association and 17 partnering organizations from around Ohio formed the Ohio IDA Consortium recently, to apply for $1,000,000 from The U. S. Department of Health and Human Services. On September 29, 2002 the Consortium was awarded the funding to be used as a carrot for one million in non-Federal matching funds. The two million dollars in combined funds will be used to match savings accounts for low-income working families. The matched savings accounts, called Individual Development Accounts, go toward owning a home, starting a small business or receiving a higher education.
The 17 partnering organizations are: Adams-Brown Community Economic Opportunities, Inc.; Community Action of Pike County; Columbus Metropolitan Area Community Action Organization; Columbus Neighborhood Housing Services; Hancock - Hardin - Wyandot - Putnam Community Action Coalition; Jewish Family Services; Licking County Coalition for Housing; Logan County Metropolitan Housing Authority; Mustard Seed Development Corporation; Northwest Ohio Community Action Coalition; Northside Development Corporation; Oikos Community Development Corporation; Portage Area Development Corporation; Stark County Out of Poverty Program; Sensible Shelter/Greene Metropolitan Housing Authority; Smart Money Community Services; and Washington Morgan Community Action Agency.
Each partnering agency will also provide financial literacy and asset specific training as well as credit review and counseling, and monitoring of the monthly savings deposits. Participants sign a savings plan agreement after reviewing their monthly budget to come up with a plan for achieving their savings goal. The programs work with the clients over a period of at least 6 months to a maximum of 5 years to clean up poor credit and complete their savings goal. Once the participant has reached their goal; the program matches their savings, usually tripling what the individual could have saved on their own.
Senator Mike DeWine comments:" This grant is a perfect example of how the U. S. government and the people that it serves can team up to help the economy grow and to ensure financial stability for working families. The Ohio IDA Consortium has come up with a resourceful plan and the Department of Health and Human Services has responded by investing in Ohio families. I have the utmost confidence that this grant will return substantial dividends for all Ohioans."
Additionally, Fifth Third Bank is supporting the Ohio IDA Consortium project by granting Ohio CDC Association $125,000 over 5 years to administer the project. Fifth Third Bank also holds the savings accounts for the participants at many of the organizations and has provided some of the non-Federal matching dollars for similar demonstrations in the past.
Recently, the Corporation For Enterprise Development released the State Asset Development Report Card citing that Ohio ranks 12th in the nation among stateÕs Asset Outcomes. In Ohio, however, 17.6% of households remain asset poor à meaning they do not have sufficient net worth to subsist at the poverty line for three months without income. Additionally, 12% of Ohio households have zero or negative net worth.
Nationally, the Report Card finds that more Americans are asset poor than income poor, with asset poverty exceeding 20% in 32 states, and that asset poverty varies significantly by race, gender, and geography.
"For years, income has been the primary measure of poverty in the United States," said Robert Friedman, chairman of the board at CFED." While income is important, the role assets play in poverty alleviation and self-sufficiency has long been neglected. Owning assets gives people a stake in the future à a reason to save, to dream, to invest time, effort and resources in creating a future for themselves and their children."
"This is a great opportunity for Fifth Third to invest the community," said Community Affairs Vice President Pam Foster. "When we help businesses start, a resident become homeowner, or provide education for an adult, we improve the communities in which we live and work."
Ohio CDC Association is a non-profit statewide trade organization of Community Development Corporations and their partners. Community Development Corporations undertake project areas such as housing development, community economic development, asset development; and microenterprise. Ohio CDC Association provides training and technical assistance, capacity building projects, and policy work in the community based development field. For more information on Ohio CDC Association or its members, please call Celia Elkins, Membership Coordinator at 614-461-6392.
If you are interested in learning more about Individual Development Accounts, please call Andria Beach at 614-461-6392 or email her at ambeach@ohiocdc. org. More information is posted on our local Web site at www. ohiocdc. org.
