Agenda - 10-13-2009 - Joint Meeting with Housing

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Item III Summary of Orange County Individual Development Account Grant Ended 1/09 REPORT FROM THE WOMEN'S CENTER 9/28/09 BACKGROUND: In 2006, the County received $50,000 in State Community Development Block Grant (CDBG) funds for an IDA Program for first -time homebuyers with incomes below 80% of the area median income. Funds from this grant were used to match first -time homebuyer participant's savings for a down payment to purchase their first home. The match ratio is 2:1. For example, if a participant saved $1,000 toward the down payment on a home, their savings are matched with $1,000 in CDBG funding and $1,000 in local funding equating to a 2:1 match of local savings. The original application proposed serving 20 participants. The grant period officially ended on January 31, 2009 and a summary of the program activities follows. From the $50,000 CDBG Grant, approximately $4,000 was provided in matching funds, $10,000 in administrative expense, and $20,000 in education expenses for a total grant expenditure of $34,000. The remaining $16,000 will be de- obligated by the County and retained by the Division of Community Assistance (DCA) for use in future program years. Program Administration: As the grant administrator for the Orange County Individual Development Account (IDA) program, The Women's Center offered an opportunity for up to 20 low- to moderate - income individuals and families (defined as earning income up to a maximum of 80% of the area median income *) to receive up to $2,000 in matched funds toward a down - payment for the purchase of a home within Orange County. Specific administration involved partnering with local companies, providing housing services, data collection and quarterly reporting. A list of the partnering agencies is shown below in Additional Information. Housing Services Program Component: Housing Services involved outreach, recruitment, curriculum design, participant intake and case management, and individual and group counseling. Credit Reporting and Counseling — Prospective participants were provided with a credit report review and credit counseling by the Director of Financial and Housing Programs. Credit reports were reviewed in detail and credit scores were assessed to determine potential eligibility for a home loan. Those clients with low and extremely low scores (300 to approximately 550) were encouraged to receive additional financial counseling to assist in debt reduction and score improvement. Individuals with higher scores and who met the other eligibility requirements were subsequently enrolled in the program. Enrollees met with the Director a minimum of two hours and spoke with the Director via telephone or email, as needed.