El Centro, Inc.

El Centro, Inc. (El Centro), located in Kansas City, Kansas, serves as one of the Kansas City Region Money Smart Model Sites. This organization provides social services to Latino immigrants living in the Kansas City metropolitan area. The FDIC-El Centro partnership focuses on the following goals: assimilate Latino immigrants into the American financial system; enable Latino immigrants to open bank accounts; foster access to asset building opportunities for Latino immigrants; provide guidance to banks on serving Latino clientele; and promote awareness of the Latino market to financial institutions. FDIC's partnership with El Centro employs a comprehensive asset building strategy. Those benefiting from financial education classes may also access complementary services that enable immigrants to accumulate wealth. El Centro clients can deposit the refunds they secure from the free tax preparation services in to Individual Development Accounts, and in turn use account monies to purchase an inexpensive home through one of El Centro's targeted mortgage loan programs. Latino immigrants, and other clients residing in the Kansas City metropolitan area, may benefit from financial and other related services offered by El Centro. The purpose of El Centro and its subsidiaries is to create and sustain educational, social and economic opportunities for families. One of its objectives is to revitalize the inner city of Kansas City, Kansas and reduce its clients' dependence on predatory lenders and contract for deed schemes.

In 2005, El Centro won a Family Strengthening Award from the Annie E. Casey Foundation. The $10,000 grant will fund El Centro's Home Ownership Center which provides low-income Latino families with homeownership counseling services and other financial solutions to homeownership and home maintenance.

Partners

El Centro was granted 175 slots of The Family Conservancy's Individual Development Account (IDA) program, and teaches Spanish Money Smart classes to fulfill the required financial education for account holders. Applicants for El Centro's special home loan programs, designed for clients with alternative credit histories and geared toward revitalizing the inner neighborhoods of Kansas City, Kansas, must complete Spanish Money Smart course requirements. FDIC also partners with El Centro on its free tax preparation through its Volunteer Income Tax Assistance and Low Income Tax Clinic programs. FDIC and El Centro have also offered four Feria de Finanzas (Banking Fairs), for immigrants wishing to open accounts. At prior fairs, several financial institutions that accept alternate identification such as the matrícula consular and the Individual Taxpayer Identification Number, were present to open accounts. In addition, representatives from the Internal Revenue Service and the Mexican Consulate processed applications for the two aforementioned documents.

El Centro offers fixed and variable rate mortgage loan programs, with down payment assistance, for those clients who cannot obtain financing through a traditional lender, such as those who do not possess a Social Security number. It also offers loans to families that have saved down payments, demonstrated creditworthiness through regular payment of rent and utilities and a steady record of employment, and resolved any credit issues through long term collaboration with El Centro's homebuyer education program. Prospective borrowers must have a 10 percent down payment, and pay for closing costs, although these may be financed with the loan. Also, borrowers may open a Individual Development Account and use the funds for down payment. They must also attend Money Smart financial education classes. Brotherhood Bank, an FDIC-supervised institution, provided a $500,000 line of credit to make the initial 10 loans. Gold Bank, Bank Midwest, and Neighborhood Reinvestment Corporation have also assisted with loan financing. Other partners include Central Bank, North American Savings Bank, First National Bank of Olathe, Douglass National Bank, Capitol Federal Bank and Bank Midwest. Neighborhood Reinvestment Corporation, Local Initiatives Support Corporation, and the Kauffman Foundation provide administrative support dollars. For a listing of model site partners please select Financial Institutions or Other Partners.

In 2007, UMB, N.A. agreed to provide $20,000 in funding for IDAs for home purchases. The program will match every $1 saved with $2 for eligible participants. The funding will fund approximately 25 IDAs.

Accomplishments

• Since 2002, $900,000 in tax refunds were disbursed back to 750 El Centro clients.
• An estimated 20,000 bank accounts have been opened as a result of the ferias and helping financial institutions understand the Latino immigrants market.
• Families have opened 175 Wyandotte Individual Development Accounts with approximately $300,000 to be used for home purchase, entrepreneurship, or homebuyer education.
• Approximately 600 individuals have attended Money Smart classes.
• El Centro has made special home mortgage loans for approximately $2 million to Money Smart students purchasing homes in the Kansas City, Kansas inner city.

The Family Conservancy (formerly Heart of America Family Services) Model Site

The Family Conservancy (TFC) Model Site in Kansas City, Missouri, is also located within the FDIC Kansas City Region. TFC is one of the oldest and largest nonprofit social service agencies in Greater Kansas City with a primary focus on families. Over 120,000 people are served annually by TFC programs, which focus on asset building, counseling, early childhood education, and family support. TFC contracts with housing authorities and nonprofit organizations to provide counseling and educational services to residents. Through the Individual Development Account (IDA) and Ways to Work Automobile Loan Programs that it offers, TFC enables low income individuals, including immigrants, to access asset building opportunities.