Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 11, 1 November 1999 — Hawaiian organizations work together to help Hawaiians reach their goals [ARTICLE]

Hawaiian organizations work together to help Hawaiians reach their goals

By Paula Durbin fOR MANY people in Hawai'i, amassing even a modest savings account has been an impossible dream. But qualified low-ineome Native Hawaiians will soon have the opportunity to save toward a home, a business or a college educahon, thanks to the pooled efforts of several cooperating organizations. The Office of Hawaiian Affairs, Alu Like ine., the Queen Lih'uokalani Children's Center, the Department of Hawahan Homelands, the Hawai'i Community Foundation, and the Kamehameha Schools/Bishop Estate are facihtating a state-wide program of Individual Development Accounts, or IDAs. "This is truly an innovarive program that allows Hawaiians to reach some measure of personal and financial success," said OHA Board of Trustees Chair Rowena Akana. "The collechve effort of these major Hawauan organizahons toward this program's success is a message that we ean take longer strides toward the betterment of our people when we are all on the same path." The IDA is a leveraged savings account in whieh the saver's deposits are matched with funds from pubhc and private sources raised by the parricipating organizations. Of funds raised locahy, OHA has committed $500,000. Federal funds have become available through the U.S. Department of Health and Human Services' Assets for Independence Demonstration program. Both the Honolulu Advertiser and Star-Bulletin have run news arricles on the IDAs. In an editorial pubhshed

Oct. 20, the Advertiser commented, "The beauty of the program is that it moves money directly into the hands of Hawauans who need it, and it encourages and stimulates savings." The Advertiser pointed out that "the amounts aren't huge on an individual basis - perhaps a two-to-one match of savings deposits between $25 and $40 a month."

The matching contributions allow the savings in an IDA to grow at an accelerated rate. The account may be tapped when the saver has reached his or her goal of funding a first home, the start of a business or higher education. At that point, the saver is connected with an existing program or project of one of the collaborating

agencies. The saver ean then withdraw the amount he or she has accumulated and the agency match is sent directly to the vendor. The saver never actually handles the match. U he IDA program will create opportuniries in I home ownership, education and business that I were not available to them before because of I eeonomie reasons," said Harvey Kim, vice I president and chief operations officer of Alu Like, whieh OHA has contracted to serve as the IDA administrative agent. "More importantly, the program will motivate people to develop financial discipline and follow through with a regular savings plan. This selfdiscipline really reaps rewards." Regarding DHHL's participation, Hawaiian Homes Commission Chair Ray Soon commented, "DHHL is pleased and excited to be a partner in the Native Hawaiian IDA collaborative program. It is a wonderful concept, as it encourages and supplements savings for worthy purposes, such as the purchase of a home. This is another example of Hawaiian organizations working well together." The program ean enroll more than 300 Hawaiians who must be willing to undergo training in līnaneial matters. Alu Like will assist the applicants in articulating realistic goals then orient them toward the appropriate participating agency. The program is scheduled to go on line on Dec. 15. James Faumuina, an eeonomie development speciahst at OHA, is working with the group to structure the IDA program. To receive additional information, eall OHA's Alu Like liaison at 594-1968. ■

"The beauty of the program is that it moves money directly into the hands of Hawaiians who need it, and it encourages and stimulates savings." - Honolulu Advertiser, Oct. 20, 1999

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