Tobey Davies¹

An Example of an IDA Program as an Asset Development Strategy for Persons with Disabilities in New Hampshire

MoneyWorks is one of nineteen Individual Development Account (IDA) Programs in New Hampshire that participate in the New Hampshire Statewide Individual Development Account Collaborative coordinated by New Hampshire Community Loan Fund. IDAs are temporary matched savings accounts for eligible low-income workers that can be applied toward the purchase of a first home, college expenses, and starting or growing a business. The Network consists of non-profit organizations that specialize in affordable housing, microenterprise, post-secondary education, and social services that formed as a group in order to share best practices, benefit from efficiencies of scale, and leverage resources necessary to carryout a successful statewide effort. The Collaborative began in October 2001. As of January 2004, a total 314 active participants were enrolled in the Collaborative with combined personal savings in excess of $349,000. Thirty-six participants have graduated, and 33 families purchased their first home.

MoneyWorks is a unique partner in the Collaborative in that it specifically recruits the participation of people with disabilities. The program shares the same basic standards and program requirements as the other IDA programs in the state, with the exception of a few modifications necessary to address the planning considerations associated with public benefit programs often accessed by individuals with disabilities. To be eligible for the program, an individual must work and meet at least one of the following federal conditions based on household income: (1) total income at or below 200% of the Federal Poverty Level, or (2) eligible for Temporary Assistance to Needy Families, or (3) eligible for the Earned Income Tax Credit. Once qualified, every dollar of earned income deposited into an IDA account is matched by another $3.00, up to a maximum of $1,000 in savings per year. For example, if a person's savings is $25.00 per month, $75.00 in matching funds are added towards the individual's savings goal. Matching funds are made available through NHCLF who orchestrates fundraising efforts with the Asset for Independence Act fund, financial institutions, and private foundations. Participants establish a Savings Plan Agreement and develop an action plan that highlights the various "next steps" or money management changes they must undergo before their goal can be realized. Common items on the list include establishing or repairing credit, paying off debt, developing and sticking to a household budget. Like other IDA programs, participants who enter the MoneyWorks program are required to participate in financial education and asset-based training on a regular basis in addition to saving. The nature of asset- based training depends on the type of asset toward which an individual is saving. If it is a business, asset training consists of topics associated with business planning, marketing, and product development strategies. These trainings are offered by a statewide microenterprise development organization equipped with a lending capacity. Home Ownership trainings pertain to the first time home buying process, including topics such as pre-qualifying for a mortgage and maintaining a home post-purchase.

One of the key features of the MoneyWorks program is that IDA participants are provided with personal benefits planning and work incentive education information, made possible by the Benefit Planning and Outreach project funded by Social Security Administration. This program informs them of the rules governing income, assets, and the treatment of each in various public benefit programs, such as Social Security and Medicaid. This feature has shown to be useful throughout program participation for both the IDA participant and the IDA program staff, particularly as the savings process begins, if employment status fluctuates, and the sources for down-payment and financing resources are identified. A second key feature is "navigational" support IDA participants receive from MoneyWorks staff. Often we hear about the confusion of coordinating public benefit plans with the various organizations involved because it is necessary to straddle two industries: human services, and community economic development (the various systems, policies and programs that govern each). This process becomes more involved in the process of identifying sources and uses of support and capital for a particular asset. Take for instance home ownership. An IDA participant may access a patchwork of programs in order to purchase a home, such as the Section 8 Home Ownership Voucher, and a variety of lending mechanisms, while at the same time juggling vocational supports, medical and long term care plans through a combination of service systems. The navigational assistance can come in handy to facilitate coordination and communication systems if needed.

MoneyWorks evolved out of Project Dollars and Sense, a State Partnership Initiative between the Social Security Administration, the State of New Hampshire, and the UNH- Institute on Disability and became an "add on" to the Statewide IDA infrastructure that was just beginning at the time. Although it began as a specific mechanism to pilot access to IDAs to persons with disabilities, it is clear that individuals with disabilities are being included in IDA programs throughout the network, albeit on a small scale and with limited capacity. IDA programs, often run by one staff member with little operational support, are typically "added on" as another feature in an organization's asset-building arsenal. The reality is that community development organizations, independent living centers, and non-profit human service organizations all have a mix of products and services to offer that can make access to economic empowerment easier. The task is determining how to do so on a larger scale, with very limited resources, in such a way that respects the strengths of each organization, and adds value to the process. We plan to help inform this practice by engaging in capacity-building activities with other IDA programs in New Hampshire as part of the Asset Accumulation and Tax Policy Project (AATPP).

For more information on the AATPP collaboration, read Michael Morris's feature article in the February edition of EQUITY.

1 Tobey Davies is Director of the Center for Community Economic Development & Disability (CCEDD), sponsored by the School for Community Economic Development at Southern New Hampshire University, in collaboration with the University of New Hampshire Institute on Disability. CCEDD and the School's Applied Research Center are the active partners from Southern New Hampshire University in the Asset Accumulation and Tax Policy Project. For more information, contact her at t.davies@snhu.edu.