11/7/02Michigan IDA Partnership1 Presentation to the 2002 State IDA Policy Conference St. Louis, MO November 7, 2002 Michigan IDA Partnership Eric Muschler N. Laurel Park Drive, #433 Livonia, MI (734) Accountability: Outcome Funding & Performance Standards

11/7/02Michigan IDA Partnership2 Quick Overview of MIDAP  Program Sites first Funded in April 2001  50 IDA Programs currently funded  987 IDA Accounts Available in the State  Nearly 600 Active IDA Participants  38 Assets Purchased to date (25 Homes, 5 Education uses, 8 Business uses)  Attrition rate as of July 2002 below 10% (may have risen in next quarter)  Cumulative Saving of $130,000 as of July 2002 Reporting Period  Leveraged $1.66 million in AFIA Commitments

11/7/02Michigan IDA Partnership3 Three Components established to track Program Site Performance 1.Program Standards & Parameters 2.Contracts & Tracking Program Performance 3.Program Evaluation and Account Expansion Process

11/7/02Michigan IDA Partnership4 1. Program Standards & Parameters Program Standards modeled on CFED certification criteria (copies provided)  Account Accountability  Funding  Staff Requirements  Organizational Stability  Asset Training  Management Information System & Reporting

11/7/02Michigan IDA Partnership5 Program Parameters Based on IDA Effective Practices Nationally Guideposts for Program Development Examples: –Savings period between 6 and 36 months –Maximum savings matched $1,000 –At least monthly contact with participant –2 missed deposits grounds for dismissal from program –Match rate for Homeownership 3:1, Business & Education 2:1

11/7/02Michigan IDA Partnership6 2. Contracts & Tracking Performance Performance Based Contract with IDA Program Sites:  Match Commitment for Accounts, plus  Pay $1500 per account for Open/Active Accounts  Disbursement occurs over a three-year period (average $125 per open/active accounts per quarter)  Only pay for Accounts that are making progress toward their Asset Purchase  Attrition made up with new open/active account to replace participants lost

11/7/02Michigan IDA Partnership7 Quarterly Tracking Information Collected (Key Data)  New Accounts Opened  Open/Active Accounts (intended use and eligibility) against number allocated  Assets Purchased  Services provided via billing statement  Attrition Rate:  From Inquiry to Program Participation  From Application to Program Participation  After Opening an IDA Account  Strengths and Weaknesses of Program  Training/TA Needs (staff development plans)

11/7/02Michigan IDA Partnership8 3. Program Evaluation and Expansion Process All Programs must meet Program Standards or risk loss of Accounts (or making progress toward standards) All Account Expansion tied to the following review:  Program Site Self-Assessment  Site Visit and Program Interview (copies provided)  RCO and other Program Site Peer Review (informal interviews)  IDA Program Site Quarterly Reports  Program has filled at least 80% of accounts already allocated

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11/7/02Michigan IDA Partnership10 MIS IDA Data 1. Program & Demographic Information  Wealth of Data but, for the most, part not Outcome Related  Household Assets information is one piece that is Outcome Related (often the weakest info collected) 2. Account Information (Savings, Funding Partner, Match Rates)  Savings Patterns – More Output than Outcome Related 3. Asset Purchase Information –  Documents Positive Outcomes at time of purchase, but will not tracked over time.

11/7/02Michigan IDA Partnership11 What are Outcome Measures for IDAs? Challenge remains to find Outcome Measures for IDAs that are cost efficient to obtain  Changes in use of other Public Assistance Programs  Change in Credit Scores  Knowledge transfer of Financial Literacy Education (collected at many programs via pre/post testing)

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