Assets for Independence Demonstration Program (AFI)

Purposes

The goals of the AFI Program are to:

• Create, through project activities and interventions, meaningful asset accumulation opportunities for eligible low-income individuals and families, including households eligible for Temporary Assistance for Needy Families (TANF);
• Evaluate the effectiveness of the projects and the project designs, and determine the extent to which an asset-based program can lead to economic self-sufficiency of participants; and
• Determine the social, civic, psychological, and economic effects of providing to low-income individuals and families an incentive to accumulate assets, and the extent to which an asset-based policy stabilizes and improves families and communities.

How Funds May Be Used

An AFI grantee establishes a Reserve Fund, combining Federal grant money and the required non-Federal funding, to match the project participants' investment of savings from earned income in matched savings accounts called Individual Savings Accounts (IDAs). The IDA savings may be used for acquisition of the following assets:

• The purchase or building of a first home,
• The capitalization of a business,
• The costs of post-secondary education, and/or
• Transfers of IDA’s to family members.

Households eligible to participate in the project are those eligible for TANF or the Earned Income Tax Credit (EITC) or those whose income over the previous year was less than 200 percent of the poverty line.

Eligibility

The Assets for Independence Demonstration Program offers 5-year Federal grants to not-for-profit 501 (c)(3) tax-exempt organizations; faith-based organizations that are tax exempt under section 501 (c)(3); State, local, or tribal government agencies applying jointly with a 501 (c)(3) tax exempt organization; and Community Development Financial Institution (CDFI) or Low Income Credit Unions, provided that the CDFI or Credit Union has a collaborative relationship with a local community based anti-poverty organization.

Sponsoring Bureau: Office of Community Services

Fiscal Year 2005 Grants:
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-2512.htm

Anticipated amount of competition FY 2005: $18,000,000

Anticipated number of awards FY 2004: 55

Anticipated size of each award: Up to $1,000,000

Office of Community Services Assets for Independence Webpage:
www.acf.hhs.gov/assetbuilding/index.html

Office of Community Services Programs to Strengthen Marriages and Families:
http://www.acf.hhs.gov/healthymarriage/funding/community_services.html#assets_ida

Contact information: Jim Gatz, 202-401-4626
E-mail: AFIProgram@acf.hhs.gov