HomeMy WebLinkAboutcover memoOCT-06-2004 12:25 CITY MANAGERS OFFICE
305 416 1019 P.02
TO :
FROM:
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Members of the Commission
Manny A Diaz
Mayor
['ATE:
SUBJECT:
AtFERENCES
-- ENCLC+$UFICS:
October 6th, 2004
FILE :
Transfer from CD to Mayor's Blue
Pages
City Commission Meeting
October 14, 2004
It is respcctflrlly recommended that the City Commission adopt the attached Resolution,
with Attachment(s) authorizing the transfer of $400,000 from the Mayor's Poverty
Initiative fund and allocating said funds to The Department of Community Development
to implement an Individual Development Account Program to be administered by Micro -
Business USA. Said funds to be equally matched by both participant and federal funds
and placed in a match savings account,
BACKGROUND:
As part of the Mayor's Poverty Initiative, accumulating and saving assets continues to be
a key component in helping City of Miami residents break-out of the poverty cycle. It
has been shown that the accumulation of assets enables long-terin financial success and
eventually self-sufficiency. individual Development Accounts (IDAs) are emerging as
one of the most promising tools to enable low-income families to save, build assets, and
enter the financial mainstream,
IUA's are dedicated savings accounts similar to a 401(k) that can be used by eligible
participants for purchasing a first home, paying for post -secondary education, or
capitalizing a b usiness. These MA's are c omprised o fp articipant a avings from e arned
income and are matched by deposits of up to eight dollars for each dollar saved. This
local initiative will consist of a 2:1 ratio. In order to draw down arty Federal finds, there
must be an equal match at the local Level. Authorized not -for -profit grantees are required
to administer and track each IDA account separately and maintain the match Rinds in a
reserve account until the participant has completed all savings requirements, Citibank is
the local financial institution that is being utilized to hold the fund accounts fox the IDAs.
The intent of the program is to encourage participants to develop and reinforce strong
habits for saving money, IDAs make it easier for low-income families to build the
financial assets necessary to achieve the American Dream, Accountholders also receive
valuable financia] education and counseling to help them to manage debt and continue to
prosper in the mainstream economy.
Locally' the program will be administered by Micro -Business USA who has been
awarded the Federal dollars for the next 3 years. This program is a part of the
homeownership strategy to assist approximately 100 fpriflies,
OCT-06-2004 12:25
CITY MANAGERS OFFICE 305 416 1019 P.03
It is recommended that the City Commission adopt the attached Resolution, with
Attachment(s), authorizing the transfer of $400,000 from the Mayor's Poverty Initiative
fund and allocating said funds to the Department of Community Developments to
implement an Individual Development Account program administered by Micro -Business
USA. Said funds to be equally matched by both participant and federal funds and placed
in a match savings account
The proposed Resolution does not have a budgetary impact on the General Fund.
MAD
TOTAL P.03