Setting the Record Straight: Part 5

This is the last blog in our 5 part blog series, in which we set the record straight on affordable housing.

Theory 5: Homeownership should be restricted to those who can put 20 percent down.

Even though studies have shown that, on the average, owning a home is less expensive than renting, it is difficult for the working poor to accumulate enough money for a dow payment. Michael Sherraden writes that, “One of the constraints on homeownership as a wealth building vehicle for low- to moderate- income households is institutional barriers to credit… Liquidity constraints, stemming from the uncertainty of lenders, prevent the extension of credit even when the working poor might be a good risk.”

Since the mortgage lending crisis began in 2007, down payment requirements have come under scrutiny. In May of 2011, the FDIC and Federal Reserve even proposed a 20% down payment requirement. While this remains unsettled, down payment requirements have remained part of the debate over mortgage finance. Within this debate is the belief that all of the down payment money must come from the borrower himself.

However, loans in the Community Advantage Portfolio do not fit into this new prototype. “A down payment of 1 to 3% of the home price is not uncommon, nor is a minimum borrower contribution of $500.”  Furthermore, a substantial amount of CAP’s borrowers had help meeting their down payment requirements and closing costs.

Using data from 2003 to 2011, Allison Freeman and Janneke Ratcliffe found that “having received assistance toward one’s down payment and closing costs has no significant effect whatsoever on CAP homeowners’ mortgage performance.”

For a closer look at the study, click here.

In conclusion, this five part blog series has used information from the UNC Center for Community Capital to refute claims about homeownership for lower- income families. These findings are particularly interesting because they have held true through recent market turmoil. Michael Sherraden argues that, “Homeownership is an important component of a long- term asset building strategy: the accumulation of small amounts of savings in an IDA can be put toward a home, which in turn can allow owners to send children to college, start small businesses, or pass along wealth to the next generation.”

New Century IDA is proud to be a part of the asset uilding movement by helping low- to moderate- income working families in Forsyth County become first time homeowners!

This home was purchased by a New Century IDA graduate in 2009.

The Piedmont Triad: Sustainable Communities Regional Planning Project

As stated in our last blog, the Piedmont Triad is in the midst of a regional planning project with a goal to build economic competitiveness by connecting housing with good jobs, quality schools, and transportation.

There are three key elements of sustainability that the project will focus on: environment, community, and economy. As defined by the project, sustainability is the act of balancing the environment, community, and economic needs of the region for present and future generations.

Below, some of the goals of the project are listed:

Environment Goals

• Define the limits of communities with a true sense of urban and rural settngs
• Take advantage of abandoned mills and brownfields
• Provide the green infrastructure that binds cities and towns
• Manage greenhouse gas emissions and reduce energy consumption

Community Goals

• Promote compact, walkable development
• Foster social equity in housing, employment, and transportation choices
• Meet the needs of anticipated demographic changes
• Support energy efficiency
• Reduce the need for automobiles and short trips

Economic Goals

• Expand the employment opportunities to meet 21^st century needs
• Lower the cost of housing and transportation for low income residents by locating employment center proximate to transit lines
• Continue to pursue economic development clusters that yield more jobs with higher wages

For more information, click here.

This is an exciting project for our region, and it can use your input. To share your thoughts and ideas, be sure to visit The Piedmont Voice!

What Is A Sustainable Community?

You have probably heard the phrase “sustainable communities.” It has become somewhat of a buzz word, but you may be wondering what it really means.

According to the Piedmont Triad Sustainable Communities Regional Planning Project, a sustainable community is an “urban, suburban, or rural community with housing and transportation choices near jobs, shops, and schools, through a means that results in livable communities, builds our local economy, and spends the money we have more effectively.”

A sustainable region is a collection of cities, towns, and counties that are joined together by a common geography, economics or other tangible characteristics. Sustainability requires balancing the environment, community, and economic needs of the built and natural environment for present and future generations.

The Piedmont Triad Sustainable Communities Planning Project defines a sustainable region by these characteristics:

• It has jobs that are tolerant of weak economies.
• It has strong, walkable communities emphasizing housing choices
• It capitalizes on individual strengths
• It protects our air and water
• It provides mobility choices
• It uses less energy
• It agrees to act locally but think regionally

 The Piedmont Triad was recently awarded $1.6 million from HUD to create a regional plan that is intended to build economic competitiveness by connecting housing with good jobs, quality schools, and transportation.

Check back tomorrow to learn more about the goals of this project and how the Piedmont Triad is working towards becoming a sustainable region!

North Carolina Community Development Association Spring Conference

The North Carolina Community Development Association (NCCDA) will hold its Spring Conference May 16-18, 2012. For anyone involved in community development work, this conference will be a great event with many learning and networking opportunities.

The NCCDA was formed in 1979 to provide a unified voice for community development officials across North Carolina. As stated on their website, the purpose of the NCCDA is to:

• Provide recommendations to federal and state agencies regarding policy and/ or program guidelines
• Provide a forum for the exchange of information and experience among agencies concerned in all areas of community development
• Cooperate and coordinate with other professional associations involved with community development
• Examine, evaluate, and recommend alternatives to existing and proposed legislation which directly or indirectly affect local community development activities

The conference is a great opportunity for New Century IDA to network with other groups who are passionate about community development, and we hope you will consider attending as well.

A few of the sessions that are scheduled for the Spring Conference are “The Role of Incubators in Fostering Economic Development,” “Collaborating with Habitat for Humanity,” and an open forum on “Community and Economic Development: Are They Really Separate Functions?” Click here for the full agenda.

To add to the excitement, the conference will be held at the Grove Park Inn in Asheville, NC! During the conference, there will even be an opportunity to take a bus tour of Asheville learn more about projects in the area.

Grove Park Inn, Asheville, NC

To register for the conference, visit http://nccda.net/events.php or contact Debora Steenson, Association Manager, at manager@nccda.net or 919-418-1325. We look forward to seeing you there!

North Carolina Foreclosure Prevention Fund

If you haven’t heard of the North Carolina Foreclosure Prevention Fund, keep reading! This just may be a program that could help you or someone you know.

The N.C. Foreclosure Prevention Fund is offered by the N.C. Housing Finance Agency. It helps North Carolina homeowners who are struggling to pay their mortgage because of job loss or temporary financial hardship that occurred January 1, 2008 or later.

The N.C. Foreclosure Prevention Fund offers zero-interest, deferred loans up to $24,000 to cover your mortgage and related expenses for up to 24 months. If you live in one of North Carolina’s counties with the highest unemployment, you may even be eligible for up to $36,000 over 36 months.

To be eligible you must meet the following criteria:

• Need assistance with payments for your principal residence, which must be located in North Carolina
• Have satisfactory mortgage payment history prior to your financial hardship
• Demonstrate an ability to resume your mortgage payment once assistance ends
• Be a legal resident of the United States

If this sounds like a program that you could benefit from, fill out the eligibility form to find out if you qualify. If you are deemed eligible, you can either apply online or contact  a housing counselor in your area.

If you qualify for a loan from the N.C. Foreclosure Prevention Fund, the N.C. Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. You will be expected to resume making your own mortgage payment once assistance ends.

The great news is that you will pay no interest on your loan. If you remain in your home for at least 10 years, the loan will be forgiven and you owe nothing!

For more information about how to access this program in Forsyth County, contact Consumer Credit Counseling Services of Forsyth County at 336.896.1191.

Watch the video below for more information on how the mortgage payment program works.

America Saves Week February 19-26

In the spirit of North Carolina Saves Week, we are sharing the following blog from America Saves.

Most Americans today are not saving adequately for retirement, and most lower-income households do not have adequate emergency savings for unexpected expenditures. To help encourage people to save, America Saves, along with the America Savings Education Council, created America Saves Week. Started in 2007, around 2,000 organizations participate and millions of people are encouraged to better their finances. 

This year, America Saves Week is encouraging everyone to ‘Set a Goal, Make a Plan, Save Automatically.’ America Saves provides helpful tips for successful saving, because not everything is always easy done alone. Take a look at our 5 strategies for saving and see how they can help you. 

This year, America Saves Week is February 19-26 and when you join America Saves you will 

receive: 

• Free subscription to our quarterly American Saver Newsletter 

• Free monthly email newsletters with savings advice 

• 100 bonus credits with SaveUp

• Free access to our members-only Savers Tracking Tool to help you reach your goals 

You can also get tips by receiving updates from Facebook and Twitter.

IDA Success Stories: Rocio

We did it!!!!

My name is Rocio, I’m a single mother, and I have a 12 year old daughter named Alyssa. This is our success story:

I was tired of living in apartments, paying rent to people and never seeing any good results out of that scenario. My dream was always to own my own home, but to me it was “only a dream”.

I wanted my own home, but being a single mother and not making a lot of money, I never thought I could own one. I used to go out on weekends to see open houses, just dreaming, and in my mind thought, “I will never have anything like this…How...With what money...My credit is not that great…What can I do...Who could help me...” All those questions ran through my mind, but no answers.

In May 2004, I heard about Granite Mortgage. I went to see them and they told me about Ashley Powell. Mrs. Powell gave me all the information that I needed and she also gave me hope. Ashley gave me the name of realtor Phillip Rector. In the beginning I didn’t want to call Mr. Rector because I ad a lot of bad experiences with other realtors, but one day I finally called him, and I have never regretted it since. Mr. Rector told me about the IDA program, and sent me an application. I was immediately contacted by Mrs. Bianca Green, and she guided me every step of the way. The IDA program was one of the best things that happened to me and my child.

During this time I hit a few bumps, like car problems etc., but I always had the support of Mr. Rector and Mrs. Green, and the IDA program. Every question was answered and they always encouraged me to keep going. I wanted a home. And this year, on Friday January 13^th, 2006 I closed on my DREAM. I have a house; I still can’t believe it! I, Rocio, have a house with a 2 car garage and a yard my child to play in. This has been a great year! Not everything was easy and it took a long time and a lot of patience, but I finally did it.

So, please don’t give up! Because if I can do it, anybody can. I thank God everyday for giving me the courage to keep going.

May God bless each and every one of you.

Sincerely,

Rocio and Alyssa.

Living on SNAP (Food Stamps): Conclusion.

Over 40 million people in the United States depend on SNAP in order to feed themselves. A 2009 study found that of the households using SNAP, 47% of recipients were children, 8% elderly, and 64% of adult, nonelderly recipients were women.

The amount of people on SNAP is rapidly increasing, although program funding is constantly at risk of getting cutback. These statistics do not cover the amount of people who are eligible for food assistance, but do not apply. They may not apply because of pride, they are unaware of programs that can help them, or they do not know where to go and how to apply. Because of this, there are many more uncounted Americans who go hungry every single day. Of these groups, the elderly are the least likely to apply for food assistance.

The millions of people utilizing SNAP are men, women, children, and the elderly. They have different upbringings, educational levels, are mixed in age and race. But, an alarming amount of those on food assistance are single, female heads of household and children, and the amount of elderly in need is far more because the elderly are most likely to not apply for aide. Those who use these programs the most are also the most vulnerable members of our communities.

This blog series shared the stories of three Americans who used SNAP and food stamps in order to feed themselves: a 22 year old college graduate who found herself homeless; an emancipated youth faced with harsh reality of attending school fulltime, and trying to feed herself and her fiancé on two part-time jobs; and myself, a college graduate and AmeriCorps worker, who grew up on food assistance. Although all stories are different, we share one commonality: we previously used or currently use SNAP in order to feed ourselves. Hunger takes on many faces, and the stories shared in this series are not the “typical” idea of who utilizes food assistance in order to fulfill their needs, or as Stacy said, “So I can eat more than a sack of potatoes.” When we open our hearts and eyes to trying to understand who seeks assistance, it is a step forward in finding a solution to eradicate poverty in not only those groups, but for everyone.

My story, along with my friends stories are only three of millions. All three of us are educated, young women who found ourselves in need. Now, with our stories still relatively fresh in your minds, I leave you with these questions: Who deserves to go hungry, why do they deserve it, and what is the true face of hunger; is there one? On that note, why are so many people unable to save their money, despite working several jobs?

Written by:

Andriana Bicanin

AmeriCorps*VISTA 

New Century IDA

2010 - 2011

IDA Success Stories: A Single Mother of 2 and the Family Caretaker Reaches for the American Dream

I am a 42-year-old single African American with two sons, ages 15 and 24. My elderly father and his sister are also in the home. Currently, I am employed with the Forsyth County School System as a Teachers Assistant. I wasn’t familiar with any program in Winston-Salem area that would work with families that needed some assistance to help them become self-reliant.

I was at home when I received a phone call from one of my friends telling me about a program that she would like for me to participate in. However, she knew that financially I would be unable to do the program in its entirety. So, she asked that I come and hear her lecture because she knew it would benefit me somehow. By hearing her lecture it helped me set financial goals, budget planning, insurance and many other things. I was so glad to have received that call. The young man who met me at the door recognized my name and introduced himself and told me to please enjoy the lecture. At that point it was very clear to us that financially it would take a miracle to be able to participate in this program and purchase a home. But, thanks be to God the young man I met earlier was able to work out a way for me to participate. I was given sound advice from a team of workers through the IDA program.

Later, my IDA worker told me about the Self-Sufficiency Program at Experiment in Self-Reliance. I was approved for enrollment and needed additional assistance with budgeting skills, assistance in acquiring information on citizenship for my sons and father who are currently in the United States on Visas, and financial assistance to stabilize my household. This program would further enhance the ability to become a homeowner and self-reliant through a series of intense case management session during my monthly visits.

Things have come together for me. My family is receiving regular medical services. I have increased my annual income and learned some basic budgeting skills. Each month I continue to work with my case planner on developing those skills, and others that will help me become economically self-sufficient. I meet with my case planner once each month, and maintain telephone contact to ensure that no additional barriers arise that would hinder my progression to self-sufficiency.

I have finished the IDA Program by building a new home from scratch; and I may add I am the first one out of the group to have a home built. Even though some may believe that it just happened, I know that God had a plan and it was just unfolding.

I am thankful to God who is first in my life for making all of this possible for my family and myself. I am so grateful for the friends that God has placed in my life to be angels and they are not even aware of that. Please continue to make these programs available to others who aren’t able to do it alone.

Just imagine five persons living in a home and only one working. To purchase this home is nothing but a miracle for my family and me. That’s why the name of my home will be The Miracle House. ESR and IDA programs provide assistance to people who would otherwise not have the opportunity to better themselves and their situations.

If I had not been given the opportunity to be a part of the ESR/IDEA/Self Sufficiency programs, I would still be renting a house that would never be mine, struggling to manage my expenses each month, and I would probably be making the same amount of money I was earning before ESR, because I didn’t have a home to call my own, thereby making me feel more motivated to keep what I worked hard to accomplish. Also, my family would still be wondering when they would become citizens of the USA. My boys are just days away from becoming citizens and my father would have the same opportunity in a very short while.

Thanks to all of you for being there in my time of need.

IDA Success Story: Cheryl Ross, "A Wonderful Life is What You Make."

A wonderful life is whatever you make it. I grew up in public housing and lived on a low-income status all of my life. One Sunday morning I read a newspaper article about a woman with the same circumstances. I read about how the IDA program helped her to become a homeowner, and she said how happy and thankful she was to be able to become a homeowner. I filled out an application not feeling confident that it would work for me. I met some good people with the same circumstances as myself. I never felt lost or confused because a coach was just a call away. I have always been looking for something better for me and my three daughters. My oldest daughter is a college student at North Carolina State University, and the nine and fourteen year olds are looking forward to also attending college.

Upon acceptance into the IDA Program I found the economic literacy classes very helpful in getting me organized and preparing a budget. The instructors were very personal and helpful, and the coaches kept encouraging me. I am now a very proud homeowner with a three bedroom home with two full baths, cathedral ceilings, a deck, three acres for a backyard, walk in closets, gas logs, central air, and a two car garage. I will never have to move again because I have found what I have always wanted. My advice to everyone in the program or considering the program is don’t start looking for houses too early. However, watch your budget and cut out things you don’t need. Also try to save more than one thousand dollars for you will want to buy some things for your house when you move in. Please be patient, and use every resource that is available to you. Ask questions, this is your future. A wonderful life is what you make of it.

Andriana's Guide to Road Trips



Written by:
Andriana Bicanin
AmeriCorps*VISTA 2010 - 2011



 This past weekend I attended an out-of-town Art Festival. I learned of this festival about a month ago, and thought about attending, but never solidified any plans. A day before the event was to take place I decided to buy a bus ticket and leave early the next day. I love spontaneous out-of-town trips, I love the arts, and I needed a getaway.

In the past four years I have lived in four different states, a combination of nine apartments, houses and dorms, had around 15 roommates, in five towns, three time zones, and each coast. If I needed to, I can pack all of my worldly possessions in a duffel bag, suitcase and backpack. Almost all of these moves were planned a month in advance, if that.

Jack Kerouac and the Beat writers are some of my favorite writers, not only for their writing, but because of the life they led, and the free spirited nature of their existences. They hopped freight trains or hitchhiked across the country. Kerouac believed in all things spontaneous, from prose to life. If he and his friends could do this, then why can’t I?

So, come game day I was completely unprepared, and about an hour into the days festivities I found myself limping, in need of new shoes, with a scowl on my face, and a few hours after that I had gone $40 over budget. I wasn’t the adventurer of days past.

I went over budget because I utilized my credit cards cash advance service. Never. Again. Yes, I needed to, my feet more than hurt, they were scarring, I was barely able to even limp, and I was anything but enjoying the gorgeous weather, wonderful music, and art. I did cash advance because the only store within walking distance that sold affordable shoes only accepted cash. I heavily weighed the pros and cons of cash advance:

Cons:

ATM fee of $3

Bank fee of $10 in addition to 4% of the amount withdrawn.

I will go over budget and struggle with my next two paychecks.

Pros:

MY FEET HURT AND I CANNOT WALK.

Pros won.

After buying the shoes, which were extremely comfortable, I was able to enjoy the rest of my trip. But nagging at the back of my mind was the $40 I had just spent, and how it negatively impacts the rest of this months budget, and maybe next.

I would not have had to do cash advance had I brought a little bit of cash/spending money, and I could have remained ‘spontaneous’ had I a savings account exclusively for such adventures. I also may not be able to attend another festival, one I am more excited about, this coming weekend.

A part of me is sad because I am ‘growing up’ and unable to partake in the adventures I used to, and that I weigh such things as money spent and how it will effect my future. I would love to lead a life of hopping freight trains, hitchhiking, meeting interesting people across this great nation and watching waves crash against the rocks of Big Sur, as there is a romantic notion and strong appeal regarding packing my bags and leaving earthly possessions behind, but I would rather have a budget, spending money, and a little bit of preparation to assure an enjoyable excursion, and feet that don’t hurt. That is adulthood. That is life. In retrospect, the majority of the Beat writers had addictions, and ultimately died rather tragically. I’ll pass on that. I’m ready for stability. I’m ready to “Put my big girl pants on.”

Andriana’s Guide to Road Trips:

• Greyhound or other bus services are great money savers. You don't have to pay for gas or parking, and someone else is doing all the driving. You can also meet some interesting people, and a great story may come of it (my facebook status updates this past winter, regarding a bus trip home, was the entertainment of several friends).
• $50 from each paycheck will now automatically transfer into my savings account. This is my road trip money.
• Have a set amount of money I am allowed to spend on a road-trips, and bring it with me in cash (taken from my road trip savings account). 
• If not comfortable with a large amount of cash, check to see if my bank has ATM machines in the area, and if there aren’t any, take the ATM fee out of the spending allowance.
• Bring a credit card in case of an emergency, but do not use it. Temptation in the form of a $7 burger or $50 painting (what a steal!) may arise, but that is what the spending money is for. 
• Pack some food to snack on. Part of the fun of trips is eating out, but I may overeat if very hungry. A bag of pretzels, peanuts, or an orange or an apple in my purse will keep me fed enough so that I don’t overspend at a restaurant or café.
• Bring a reusable water bottle.
• Wear comfortable shoes.
• Never use cash advance.

Saving for Repairs and Upkeep of Your New Home

Written by:

Barbara Johnson, IDA Program Director

Experiment in Self Reliance

In today’s economy how do we make repairs to our homes or even maintain and keep them up?  I’ll tell you by planning ahead and using a budget. Some may think of a budget as restrictive but a budget is really a wonderful and useful tool. For example what if you need to purchase a lawnmower before next spring and it is going to cost you $550 if you plan to purchase it in March you have 10 months to save for it @ $55 a month. When March comes around you already have the money to buy your mower. This is a painless way to acquire the things you need and those things you want also. We do not eat an apple in one bite why try to tackle big expenses that way. Wouldn’t it be better to take on expenses like we eat an apple one bite at a time?





From Client Turned Success Coach, the Story of New Century IDA Success Coach Jackie Baldwin

To the single mom, single dad,  the couple, to the young, & the old whom desires to be a homeowner: IDA is the doorway to a new beginning. ~Jackie Baldwin



ESR/IDA Success Coach,
Jackie Baldwin

 Ms. Baldwin was a client of Experiment in Self Reliance’s (ESR) Self Sufficiency Program, and a yearly participant of ESR’s EITC tax program when she gained knowledge of the New Century IDA 1^st time Homeowners program, and immediately looked into it and applied. One of her dreams has always been to become a homeowner, but she thought this was something she needed a husband for; dual income. Despite her preconceived notions of needing a husband in order to buy a house, she excitedly applied and in December 2007, she became a proud homeowner. She is now also an employee of ESR’s team as an IDA Success Coach, who helps countless clients achieve their dreams of homeownership.

Jackie has always prided herself in taking care of her household, while raising her three teenage daughters.  Even prior to IDA participation, she believed in paying rent on time and maintaining her credit. She came into the program with minimal debt and no collections. She had the support of IDA, her daughters, and her friends and family to assist in the process of making this dream come true.

When she sets her mind to something, she follows through. “I didn’t talk about it,” said Jackie, rather she “dug heels in, and set the calendar to accommodate the new schedule of  the IDA curriculum, and to soak up all the knowledge and education they were offering.” Even though Jackie already had good credit and was paying her bills on time, she learned a lot about credit and homeownership through the economic literacy classes. She wanted to know not only how to get into a house, but how to stay in it as well. The financial literacy classes and the monthly required meeting with her success coach were the required tools for people in all stages of credit and savings. Simply said, IDA fully equips one for what is needed to know about purchasing a home. For Jackie, each class brought her closer to her dream and her “ears were ringing with excitement.”

Jackie attended Financial Literacy classes and meeting with her success coach, in addition to being a full time mom, full time employee, and attending evening and weekend college courses at Winston-Salem State University. “It was a plateful”, she explained, but this was her and her children’s dream and she was going to accomplish this. She had the determination and peace of mind to persevere and reach her dream of homeownership. When praised for her determination and success, she immediately points out that there are so many people that have done this before her so she knows that she can also obtain her goal as well.

Although she described her journey as exhausting, she was realistic throughout as she incorporated exercising and changing her eating habits to be able to withstand all the tasks at hand. Ms. Baldwin has a strong belief system, and as a believer she also makes time for church and prayer. Her relationship with Christ was and remains her strength. She relied on friends and family heavily to help with her children. She spoke of how she  mothered  her children over the phone, giving advice and listening to a little sibling rivalry in between classes. Fortunately her girls were as focused on schooling as she was. They were great students and were a great encouragement to her as well, challenging her to make Dean’s list as they made honor roll.

Successful graduates of the program time and again share how they involved their children in the home-buying process. Jackie explained that it has a “trickle down” effect within the family.  By including her children in this process, she put the ball in their hands by reminding them that “they” were buying a home and change had to take place with everyone. With her family, they each sacrificed by not eating out, and doing each other’s hair and nails. She asked them, “How are we going to achieve this goal?” They also rented movies instead of going, cut down cable, and got over not having a summer vacation. Instead, everyone had a summer job. Cell phones were not as a necessity as they thought.  There was always the house phone. When they did decide to treat themselves they went to the discount movie theater, and used coupons to eat out. This way she laid the responsibility in their palms- “You want your own room; this is what it’s going to take.” And despite reservations of cutting some of the luxuries which they were accustomed to, such as eating at their favorite restaurants, she learned to cook those favorite meals, and she “Turned out to be a pretty good cook after all.” :)

“If you have a desire to be a homeowner, there is no better way to be a homeowner than to be an educated homeowner.”

She really loved going to class and hearing the presenters- all of the facilitators brought interesting and fresh information to help her better her life. She stayed after class and everyone always had time for her. This experience helped her build new relationships. She could ask questions and get answers, even ones she was hesitant to ask. Everyone involved with the program had an obvious commitment to help each and every one of the clients- Jackie could feel that the staff was just as excited to teach as the students were to learn.

As for classes, she was very impressed with the Psychology of Money; the viewing of money and the reducing debt; learning about debt ratio; and she really enjoyed the Investing for the Future & 401k class. She particularly liked the latter because she has always believed in saving and preparing for the future, and this class was full of helpful info and resources and connected to the way she already lived. She has always had the heart and mind of a saver, and this course helped to further strengthen her skills. The classes supported and fostered her belief that, “It’s very important to not only live for today, but prepare for tomorrow”.

The Economic Literacy classes taught her how to accurately read a credit report. She now understands that everyone has a credit history and you need to have a relationship with your credit because, as she says, “It’s a part of me, who I am on paper.”

Her family has been extremely supportive, and they are all proud of her and her achievements. Everyone has shown their support and congratulate her efforts to stick to her goal of homeownership, staying on task, and teaching them the benefits of saving, budgeting, and the power and purpose of spending. She is passing on what she has learned about the power of controlling your spending habits- first of all to her family and to her clients. This endeavor showed her young daughters that “Yes, you can do this. Dreams can be attained with a little hard work, determination, and putting things into perspective. Your paycheck may not change, but you can change your mind set, behaviors,  and thought process with spending.”

“This is something that has enhanced my life, and helping someone’s dream come true (is my favorite part of working here).”

Her motivation on her job as an IDA Success Coach is collaborating with her peers, and ensuring them that homeownership can be obtained. Her motto is: if you can pay rent, you can pay mortgage if that is your desire, so when they come in they embrace the same motto. Clients gain understanding of setting a goal and doing what it takes to achieve that goal. There is a starting gate and finishing gate, and to get through, they have to go through the ups and downs, behavioral changes, budgeting, couples coming together and agreeing to disagree, and putting their budgets and dreams on paper. Their eagerness inspires her to pour back into them what was poured into her. It gives her the greatest pleasure to attend a closing of a new homeowner; watching the excitement as they sign the papers and retrieve the keys to their new home, and seeing their dreams come true. It is absolutely priceless.

This program falls to first time homeowners who are apprehensive. Because of the economy they need to know there is safety in the IDA program. When these clients come to the lender they are educated, credit ready, and very excited. They have ongoing classes, and becoming a part of the IDA program ensures realtors and lenders ready clients.

Her words of encouragement to those contemplating applying to the IDA program, “Nervous is a good sign! It shows that you know this is a commitment, a lifelong commitment. It’s okay to be nervous. The sad part would be not to give it a try. Sad part would be to put your dream on the back burner.” And that, “A new class is starting in April, if that’s too soon, there are quarterly classes. And if you don’t have the best of credit, it’s our job to help you clean that up and get you ready to secure your first mortgage.”

IDA Programs Help the Entire Community:

Clients are taught financial literacy, resolve their credit issues, and through

homeownership forge a bond with their community. They are provided financial

education that helps break generational poverty

Local government and communities benefit from increased property taxes that goes

towards police, fire departments, and schools; helps in the creation of educated consumers.

Lenders, Real-Estate Agents, and Insurers are given access to a pool of mortgage

ready, and buyer educated clients.

Written by:

Andriana Bicanin

AmeriCorps*VISTA

New Century IDA

IDA & Asset Building Collaborative of N.C.

&

Jackie Baldwin

Success Coach

New Century IDA

Stabilizing Communities

Not everyone knows what an IDA program is, or how it can help their community. IDA stands for Individual Development Account, and they are matched savings accounts that are matched either 2:1 or 6:1. That means, for every $1 the client saves, 2, 3, 4, 5, or 6 dollars is put into the account. The end result is a downpayment for the clients dream home.

When you hear, "We help working members of our community become first time homeowners", or "matched savings account", what is the first thing that pops in your head?

A few that are at the top of the list are:
1) "What about subprime loans?";
2) "The housing market crashed, how in the world can this help?";
3) "How do IDAs work; is it just money and houses given away?"

Well, here are the answers to all those burning questions:

1) Not a SINGLE person in the history of the New Century IDA has received a subprime loan. Clients sit with the wonderful loan counselor, Bianca Green, and discuss their options. She works with and for the clients, and always has their best interest in mind. Everyone behind the scenes have the clients interest in mind.

2) Yes, the housing market crashed, but right now is the BEST time to buy a house! Builders have built homes, but they aren't selling; there are foreclosed homes that are not bought; and prices are low. If people buy homes now they are buying them at their lowest prices, and when the market is better they have the option to sell at a higher cost.

And how can this help? How does this NOT help? Families are learning the importance of savings through the financial literacy classes. I was taught my entire life, through school, how important it is to save, but that wasn't enough- I also needed to know how to save.

Financial literacy classes teach clients how to save, cut costs, and reach their dreams. When a parent is taught how to save they pass this knowledge on to their child. Their children then use this knowledge at a young age, and they live their lives saving and spending in a responsible, financially educated manner. Even those without children pass this knowledge to family and friends. As a current client said, "The IDA program is people helping people help people".

Communities benefit from the additional taxes homeowners pay that goes to the fire department, school district, police officers, and other publicly funded institutions. Buying a home is also a process. Builders are receiving pay for building homes, lenders are used for acquiring mortgages, and then there is homeowners insurance (insurance agents receive money), and the ability for the client to spend money on their house because of their newly acquired savings knowledge, and ability to responsibly spend.

Since the inception of the New Century IDA in 1999, less than 10 people have defaulted on their mortgages, and over 440 people have successfully bought houses. The default rate is far below the national average, and those who continue to own homes also continue to reinvest in their communities through savings, responsible spending, and paying their taxes.

3) IDA's are not just money and houses given away. Clients spend months going to financial literacy classes; they are required to save $1500 of their own dollars; and they meet with their success coaches on a required, regular basis.

New Century IDA clients are single parents and couples; they are young, old, and may be hesitant to buy a home because of previous credit issues, and what they read on the news about the job and housing markets.

I recently interviewed a client turned success coach. She shared her experience as a single mother who was not only attending financial literacy classes and meeting with her success coach, but she was also attending night classes at a local University- on top of working full time. This is a normal story for New Century clients. New Century IDA clients are workers, parents, couples or single, their commonality is that they are looking to grab their piece of the American Dream, and they are working very hard to do so!

When you support the New Century IDA (and IDA programs in general), you are supporting responsible economics, breaking the cycle of poverty, and empowerment of the individual and community. Everyone walks away a winner.

Click here for more information on the New Century IDA, or peruse through this blog. You can also ‘like’ us on facebook.

Click here for more information on North Carolina IDA and asset building initiatives

Also check out Asset for Independence, and the Center for Economic Development for more information on the assets movement, and how to become a part of this innovative and life changing movement.

Andriana Bicanin

AmeriCorps*VISTA

the New Century IDA, Housing Department

the IDA & Asset Building Collaborative of N.C.