In collaboration with Prescott Area Habitat for Humanity (PAHH) and Coalition for Compassion and Justice (CCJ) proposes to design and implement a program of Individual Development Accounts (IDAs) in the quad-cities of Yavapai County.

Individual Development Accounts (IDA)s are savings accounts belonging to low- and moderate-income individuals or families who earn match funds through regular and continuous saving. Match funds are disbursed if and when the family’s savings are used for the acquisition of a home or home repair.

Low- and median-income families are more likely to escape poverty if they are able to acquire key family assets. Ownership of a home is an asset that helps a family become more financially self-sufficient. Families that are in strong financial positions help to support strong and stable residential neighborhoods.

In addition to earning match dollars, participants will learn about budgeting, saving, banking and more when they open an IDA. People who open IDAs (account holders) are required to attend financial counseling and homebuyer education classes. Account holders may also receive one-on-one counseling and other training with their IDAs. Upon receipt of grant funds, Choices, PAHH and CCJ (Collaborative) will design brochures, flyers and media advertising to announce the IDA program in the quad-cities. Brochures, flyers will be distributed at target locations in the quad-cities such as banks, Low Income Housing Tax Credit properties, real estate offices, lenders, social service agencies, etc. Press releases will be sent to the media as well as public service announcements on the radio. Additionally, speaking engagements will be scheduled at service clubs, real estate association meetings, etc.

Every even numbered month, an orientation will be held to inform prospective clients and individuals interested in learning more about the process of saving to either purchase a home or repair an existing home. These two-hour presentations will include available assistance, how to determine how much a household can afford to save monthly and how long it will take to reach their desired goal. On the odd numbered months, the Collaborative will present Homebuyer Education and Financial Counseling. Homebuyer Education will be given in partnership with experts in the field of housing such as lenders, title companies and realtors, Collaborative staff members and volunteers. Clients will be provided with information on different loan products, what lenders look for, mortgage terminology, how to avoid predatory lending, the local real estate market, how to work with a realtor and how to find a home and maintain homeownership.

Financial Counseling will be given in partnership with lenders, title companies, realtors, Collaborative staff and volunteers, who will provide clients with information on establishing household spending/savings goals, why credit is important when purchasing a home, how to find their credit score, how to fix or establish credit, and how to understand a credit report. Each class will last four hours and participants are required to attend four of the required classes for a total of 16 hours within the first year of enrollment.

To be eligible, participants must be employed in the quad-cities, earn no more than 80 percent of median income and be legal residents of the US. Persons enrolling to save for down payment on a home must be first-time homebuyers or have not owned a home for three years. (HUD rules) Those seeking to save for home repair must be owner/occupants.

At the time of enrollment, participants will be asked to pay a $30 enrollment fee that will be applied to their savings after the completion of the required training. Mentors will work with each family to determine how much they can afford to save and how long it will take to reach their goal. Further, mentors will have contact with families in the program on a monthly basis to track their progress and offer one-on-one coaching. After a family has reached its goal, the mentor will maintain contact every six months or more, if requested, for the next three years.

A minimum of $30 savings a month is required for homeownership and $15 for home repair. During the first year of participation, savings are matched with IDA money at a rate of 2:1, the second year, 2.5:1 and in the third year the match will increase to 3:1. The minimum for home repair savings is six months and for down payment is one year. Maximum savings time is three years. The savings cap is a total of $5000 or $2000 a year. Allowances for leave of absence for special circumstances will be considered on a case-by-case basis.