by Heidi Goldberg

NLC?s Institute for Youth, Education, and Families (YEF Institute) has competitively selected six cities to participate in the second phase of the Cities Helping Families Build Assets (CBA) technical assistance project.

The project, supported by the Ford Foundation and the Annie E. Casey Foundation, aims to help municipal leaders build capacity to develop and support asset-building initiatives that help low-income families.

The cities chosen for phase two of the project are Burlington, Vt.; Itta Bena, Miss.; Louisville, Ky.; Orlando, Fla.; Savannah, Ga.; and Seattle.

Numerous studies demonstrate the importance of assets in helping families achieve economic stability, yet show that more than half of all Americans have few or no assets, which can lead to intergenerational family poverty, homelessness and decreased civic involvement.

?I want to make Orlando a safe and supportive community for children, and an important way to do that is by enhancing the economic security of our city?s families,? said Orlando Mayor Buddy Dyer. ?If our city?s families are economically secure, they will be able to invest in housing, health care, quality child care and other things that will help their children grow up safe and strong.?

YEF Institute Director Clifford Johnson believes this applies to all cities.

?Asset building can be a key municipal strategy to help boost family economic security,? said Johnson. ?The strategies identified in this project not only help build family financial stability, but also produce important economic benefits for cities. The second phase will provide the selected sites with technical assistance to implement plans that help local residents build and retain assets.?

From Learning To Action
Local action plans will be formed by the first phase of the project, which ran from September 2005 through this past June and brought city teams together to participate in educational site visits that highlighted effective asset-building strategies.

These strategies included financial education, home ownership counseling and incentives, asset accumulation through savings campaigns and Individual Development Account programs (IDAs), and asset protection measures to help families avoid predatory lending and other ?wealth-stripping? practices.

?Our city?s participation in phase one has been valuable in a number of ways ? from broadening the knowledge and perspective of city staff, to increasing and strengthening the city?s partnerships with private and third sector partners, to giving us a range of new ideas to explore and hopefully implement,? said Burlington Mayor Bob Kiss. ?I share the vision of expanding wealth equity among our residents, and look forward to playing an active role in this effort.?

Seattle?s Low-Cost Banking
The City of Seattle plans to connect low-income families to a continuum of existing asset-building programs and services, such as banking services and alternative home loans.

Working with the local Federal Reserve Bank, the city plans to partner with local financial institutions to bring low-cost banking to low-income communities. To date, the city has successfully developed an electronic screening tool that seamlessly connects residents with benefits like the Earned Income Tax Credit (EITC), food stamps, child care subsidies and utilities assistance.

?Phase one has been the impetus for Seattle to begin developing a coordinated and cohesive system that provides a continuum of asset development services,? said Seattle Mayor Greg Nickels. ?While Seattle has most of the necessary programs in place, too often people don?t know how to access those programs. Our action plan aims to change this.?

Savannah Furthers IDA Programs
Since the beginning of the project, the City of Savannah has expanded its EITC initiative and developed a new focus on financial education and IDAs for residents using free tax preparation sites. The city has reached out to the faith-based community and to employers to help organize financial education workshops.

During phase two, Savannah will integrate asset-building programs into the city?s already-established poverty reduction efforts by further expanding IDA programs, securing funds for home ownership and developing savings programs for youth.

Louisville Encourages Saving
With an already strong EITC campaign underway, the Louisville-Jefferson County Metropolitan Government team has used phase one to develop a strategic plan involving local businesses and other community stakeholders.

Working with the Louisville Chamber of Commerce, the city plans to garner support from employers by creating a work force collaborative that promotes asset-building strategies to employees.

These strategies include raising awareness of benefits such as EITC and food stamps and maximizing employee participation in employer-provided retirement and savings accounts.

Another goal for Louisville is to launch a city-wide campaign to encourage saving and to connect residents to low-cost bank accounts.

?The connections between peers in other cities, as well as sharing innovative practices and accessing the advice of national experts, have proved invaluable,? Louisville Mayor Jerry E. Abramson noted. ?We look forward to continuing the relationship through phase two and growing our programs??

Orlando Gives ?ExtraCredit?
The City of Orlando has a unique EITC program in partnership with the Orlando Regional Chamber of Commerce. Known as the ?ExtraCredit? campaign, it equips employers with tools to inform employees about the EITC. In the past year, the program expanded to promote additional benefits at the city?s free tax preparation sites.

During phase two, Orlando will target a wide range of asset-building activities toward a particular high-poverty neighborhood, including financial education, EITC promotion, child care subsidies, savings programs and banking initiatives. The city also plans to expand home ownership opportunities for residents.

?Utilizing resources acquired via the first phase of the CBA project, the Orlando team broadened its approach this year to include multi-benefit outreach ? during the 2006 tax filing season,? commented Mayor Buddy Dyer.

Details: For more information, visit www.nlc.org/iyef or contact Heidi Goldberg at (202) 626-3069 or goldberg@nlc.org.