Ka Wai Ola - Office of Hawaiian Affairs, Volume 17, Number 4, 1 April 2000 — I.D.A. update [ARTICLE]

I.D.A. update

By James Paumuina

Editor's note: The federally-funded Individual Development Accounts, IDAs, empower communities by helping individuals to save and increase their assets. James Faumuina, OHA eeonomie development training specialist, shares some information on the program that potentially will enhanee the lives offamilies all over the country. Low savings and weakh holdings are a problem for lower and middle-class households as indicated by the following statistics: • Ten percent of all families control two-thirds of the weakh in the Unived States. • One-half of American households have less than $1,000 in net financial assets. • One-third of American households (and 60 percent of African-American households) have zero or negative net linaneial assets. Why IDAs? IDAs are necessary because lowineome families need substantial assets to overcome poverty and achieve eeonomie self-sufficiency. IDAs, through the use of matching deposits and supportive non-profit organizations, help lowineome families acquire both the capital

and skills they need to "jump start" their lives, set goals for their future and integrate themselves into the mainstream economy. IDAs are not hand-outs; they are investments in people who are willing to first save and invest in themselves. Poverty in Hawai'i The IDA is more than a tool to develop assets. It also may be a means to end the cycle of poverty. According to an article printed in the March 16 Honolulu Advertiser, children in this state are dealing with increased levels of poverty. One in five children in Hawai'i live in poverty according to a report by 1999 Hawai'i Kids Count. OHA is in a unique opportunity to test the IDA as a possible method to alter this cycle. Current Program Status To date, the demonstration program has been able to meet many of its objectives. Since the program's start Dec. 15, families have been able to access IDAs. The current project goal for the five-year demonstration period is for 300 IDA holders to acquire a major asset. We anticipate that the 1 00 Hawaiian IDA holders shouyld be on track before the end of this year. Recruitment and training have occurred on the islands of Oahu, Maui, Hilo, Moloka'i and Kaua'i. OHA has worked with other Hawaiian organizations to recruit, process and train participants. In partnership with Ke Aka Ho'onā homeowners program in Nānākuli, OHA and Consuelo Foundation have established accounts for 25 families. Currently, OHA is working with the Department of Hawaiian Homelands to assist lessees in purchasing their

first homes. Participants in OHA's Ho'oulu Mea Kanu Program are using their IDAs to develop their businesses, and the Queen Lili'uokalani Children's Center 'Ewa unit is working with 10 students from Waipahu High School who are saving to go to college.

How to Apply: If you are interested in learning more about IDAs and how you ean participate in the demonstration program, please contact ALU LIKE's MSP Unit (O'ahu) 535-6731. ■