Choctaw Asset Building (CAB) Dawn Hix, IDA Coordinator Choctaw Nation of Oklahoma

Who Can Participate in an AFI-Funded IDA Program? TANF-eligible in their state OR Meet both of the following two criteria Income: twice the poverty guidelines (about $44,000 for family of four) OR EITC eligible AND Net worth: maximum $10,000 (less one residence/one vehicle) Administrating agencies may apply additional eligibility rules What are the eligibility requirements of participants? TANF eligible or Meet both of the following income and net worth criteria— twice the poverty guidelines (about $44,000 for a family of four) or EITC eligible AND Net worth less than $10,000 (excluding a residence and one car) Local administrators may have additional eligibility rules. 2

AFI Projects More than 350 organizations throughout the nation Multi-purpose non-profits State, local, or Tribal governments Multi-site networks of organizations Locate a project near you: http://IDAresources.org/Map

CAB Goal: To assist 340 Choctaw individuals and/or families to manage their money and credit wisely and to empower them in regularly saving toward a major asset …thus helping them take strong steps to break free from generational poverty and achieve long-term economic self-sufficiency.

Review of Timeline of CAB Program IDA Grant Awarded June 2009 Drawdown Funds October 2009 CAB Accounts Open November 2009 Financial Education January 2010

Qualifications Member of the Choctaw Nation Member of Choctaw Nation Career Development Income guidelines Minimum $50 initial deposit Monthly deposits $25 6 months to 36 months timeline Original Focus group 10 ½ counties of the Choctaw Nation (11,000 miles) – Now State of Oklahoma 5 counties in Arkansas and 5 counties in Texas 12 hours of Financial Education within 6 month of joining program 6 hours of Asset Training before using matched funds

Qualifications Cont’d Deposits made from Earned Income Total assets < $10,000 (excluding primary residence and one vehicle) Homeownership - qualified first-time homebuyers (defined as having had no ownership interest in a home for three years before entering sales contract on a qualified home)

3-1 Match Home Ownership 2-1 Match Education Business Ownership

Example Kim needs a home She needs $8,000 for down payment and closing costs Opens IDA and receives financial education, debt counseling and home ownership information Receives savings match at a rate of $3 for every $1 saved in her IDA account Kim saves $2,000 ($55 per month over 3 years) This is one example of a participant saving for a home. Kim is a single Mom with two kids. She learned about the AFI Project at the local Head Start Center. The Head Start referred her to the AFI-funded IDA project. 10

Kim’s IDA $2000 Savings $6000 Matching $8000 for Home $2,000 Kim Saves $2,000 Federal $4,000 Non-Fed In this example Kim deposited her savings over a three year period. She received $4000 in match funds. ½ of the match funds came from the AFI grant, the other ½ of the match funds came from another source. She has $6000 to apply to the down payment of a first home. If she needs more than $6000 for a down payment, the administering agency or a partner organization may help to add OTHER first time homebuyer funds to the $6000. This example focused on the fundamental components of each AFI-funded IDA project. No matter what the participant is saving for, the structure is basically the same. The process is the same no matter which of the three assets the participant is saving for – home, education or small business. Sources such as Pell grants and student loans are added to the financial aid package of a student. Small business loans are added to the $6000 if needed. $8000 for Home 11

How Did We Do? Mailed over 5,000 brochures to Career Development clients Attended Tribal Educational meetings Visit Choctaw Community Centers Weekly Career Expo Event Booth (Approx 2,000) Contacted Human Relations Director for Choctaw Casinos (Approx 5,000 employees) Stories in Choctaw Tribal Newsletters (Approx 200,000 circulation) Website www.choctawcareers.com Newsletter “The Ticket”

Key Partnerships First United Bank of Durant Choctaw Housing Authority Rural Enterprises Inc. Little Dixie Community Action Ki Bois Community Action Kiamichi Tech Centers

Top Issues Facing CAB Changing generational savings habits Gaining trust Achieving asset goals Maintaining monthly deposits Attending financial education classes regularly

Successful components Leadership Placement of IDA Patience Flexibility

The Sign Up

The Education Classes

“My favorite part of the class was the way the instructor made the class fun to be at, and he made things so simple and easy to understand. The class made me realize that some things dealing with my finances need to be changed.” Kamie Case

The Cash Out “Thank you! It would have taken us at least another year or more to be able to move in without this program. I think it’s awesome and tell everyone that will listen about it. “ Kimberly Feltman

Contact Information Dawn Hix, IDA Coordinator dhix@choctawnation.com 800-522-6170 ext. 2614 www.choctawcab.com