Asset
Building Programs
The mission of the Asset Building Department is to promote sustainable community
and economic development by providing financial literacy training, housing,
financing, and job opportunities and other related services to under-served,
low-income populations and entrepreneurs. The activities of the department
compliment and reinforce the goals and objectives of the Alliance.
Goals and Objectives of the Asset Building Program include:
o To increase money management skills and the ability to save
o To increase business ownership among low-income families
o To increase homeownership among low-income families
o To increase the percentage of low-income individuals who acquire post-secondary
education
The activities of the department focus on:
o Developing sustainable resources to provide affordable housing where other
support services (Child Care, ESL classes, job and educational training) could
be provided to the low-income community by the other departments of the Alliance.
o Developing sustainable resources to provide Individual Development Account
Program (IDA) for the creation of wealth-building assets (i.e. home, post-secondary
education and micro enterprise) among the low-income population.
o Developing and sustaining resources to provide small business training,
financing and technical assistance to low-income people and minorities that
wants to start their own business.
In order to accomplish its mission, the department has outlined the following
strategy:
1. Affordable Housing and Support Services:
The strategy for owning and operating multi-family affordable housing is to
acquire existing apartment housing complex consisting of a minimum of 250-300
units:
o Provide clean, decent, and safe affordable transitional housing to low-income
residents of the grater Houston community.
o Provide adequate, pleasant and safe recreational playgrounds for children
and adult residents of the housing community.
o Provide communal facilities within the apartment complexes where social
services could be provided to residents.
Acquisition of land for development and construction of new multi-family housing
units, single-family housing and senior independent housing units is to be
considered in stages as funding for these projects becomes available.
2. Economic Development:
The strategy for economic development is to recruit existing and potential
entrepreneurs from the low-income community and equip them with training,
and provide them micro-loans and technical assistance in order to assist them
to develop their potential and enhance their economic wellbeing thereby creating
additional jobs and economically revitalizing the area and their community.
The economic development programs presently implemented by the department
are the IDA program, the Micro enterprise (micro-lending) Program, the Financial
literacy program, and the VITA (Voluntary Tax Assistance) Program
The IDA and Micro enterprise programs which have already secured funding from
the Federal government, the State, and other private funding sources have
been serving and continue to serve the low-income population of our community.
2.1 Individual Development Accounts (IDA) Program
Individual Development Accounts are a matched savings program that assists
low-to-moderate income families and individuals in the Houston metropolitan
area establish a pattern of regular savings with a goal of purchasing an asset
of value. An asset of value is likely to return substantial benefits to its
owner. These benefits are stability, security and opportunities for increased
income.
The IDA participants may use their savings and match money towards any of
three assets of value: a home, small business or a post-secondary education.
Participant deposits are held at Bank of Texas and are matched using Federal
grant funds. All participants also receive financial education classes in
addition to asset-specific counseling in conjunction with their stated asset
goal.
The Alliance currently offers two IDA Programs.
IDA - Refugee
The Saving to Acquire Resources (STAR) program is a special matched-savings
account program to help low-to-moderate income refugee families and individuals
in the greater Houston area. The match rate is 1:1 to the participant savings
account.
IDA - Assets for Independence (AFI)
The Assets for All program is a special matched-savings account program to
help low-to-moderate income refugee families and individuals in the greater
Houston area. The match rate is 2:1 to the participant savings account.
2.2 Micro-enterprise / Micro-lending program
The Refugee Economic Micro-enterprise Development Initiative (REMEDI) is to
provide credit to low-to-moderate income refugee entrepreneurs that do not
have access from commercial sources.
This program assists first time entrepreneurs with credit counseling, developing
a business plan, small loans and mentoring.
The Core services of Micro-enterprise / Micro-lending Programs:
o Business development training
o On-going technical assistance
o Mentoring
o Access to capital through micro-loans
All participants are required to take a course offered by SCORE on "How to
Start a Business"
Loans range from $500 to $15,000
Fees: application fees and processing fees are minimal
The business must be registered/licensed
The loans proceeds are to be invested in the business
Credit history will be built as the participant remits their payment in a
timely manner
2.3. Financial Literacy
Financial literacy classes are offered to all participants in the IDA and
Micro-enterprise programs. Participants will attend eight (8) hours classes
whose curriculum addresses The value of checking account, credit history,
loans, and etc.
2.4 Volunteer Income Tax Assistance Program (VITA)
The purpose of this program is to provide income tax services free of charge
to refugees, immigrants, and low-income families of the Greater Houston Metropolitan
Statistical Area. It is estimated that each year Houston loses between $15
and $35 million in unclaimed Earned Income Tax Credit (EITC). With additional
resources the Volunteer Income Tax Assistance (VITA) program can help close
the gap of eligible EITC claimants and reclaim these important funds for working
families and the community.
The Alliance is currently an IRS-registered VITA site.