Oakland-Alameda County Opportunity Youth Initiative Opportunity Youth Emergency Fund

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1 Oakland-Alameda County Opportunity Youth Initiative Opportunity Youth Emergency Fund Overview The Urban Strategies Council received a development grant from the Aspen Institute Forum for Community Solutions Opportunity Youth Incentive Fund (OYIF). USC convened a public systems and community partners drawn from the Boys and Men of Color (BMoC) Leadership Tables to develop/align onramps to pathway programs that connect Opportunity Youth to stabilization services that lead education and training resulting in family-sustaining career employment. The Opportunity Youth Initiative will target cross-over youth who are years of age and are/or have been involved in both the juvenile justice system and the child welfare system, particularly boys and young men of color who are overrepresented in this population. Purpose During the initial Aspen OYIF asset mapping activities, the Steering Committee identified key stabilization barriers that Opportunity Youth (OY) and Cross-over Young Adults face across educational and employment pathways [see Appendix 1]. Current policies have created barriers that preclude access to pathway onramps for OY and Cross-over Young Adults if they do not receive sufficient financial assistance and stabilization supports. The Emergency Fund will respond the needs of Opportunity Young Adults (18 24 years old) for financial resources where lack of funds represents a barrier to achieving milestones in their plans by providing individual assistance in the form of grants and loans to support immediate stabilization needs: 1. Secure Affordable Housing 2. Restitution and Probation Fees 3. GED /or Certification Tests 4. License Fees / Transportation Costs 5. Child Support Orders / Child Care Program Development The OY Fund will be developed in phases: 1. Phase I: Assessing landscape of needs among Opportunity Youth; assessing current models and best practices in the field to inform eligibility guidelines for financing a loan product; identifying potential funding opportunities available among public agencies, philanthropy and community partners [see Appendix 2]. 2. Phase II: Coordinating program design process; developing necessary legal and financial framework to administer microloans for Opportunity Youth; creating and approving criteria for program and application; 3. Phase III: Accepting and administering first round of microloans (soft launch) 4. Phase IV: Initial process evaluation to identify ongoing needs of OY and corrective programmatic revisions Opportunity Youth Emergency Fund 1

2 Opportunity Youth Emergency Fund Program Design The OY Emergency Fund will include program elements that complement the Opportunity Youth Initiative pathway and maintain sustainability over time. The program elements would include: 1. OY Emergency Fund will be financed through donations and grants (e.g. public funds, philanthropic matching funds, giving circles, etc.) 2. Opportunity Young Adults who have been assessed by the Re-engagement Center are eligible to apply for the OY Emergency Fund. This will include a benefits screening to determine eligibility for existing social services that can cover ongoing, immediate stabilization supports. The emergency fund will address costs not covered by public services. 3. Opportunity Youth Emergency Fund decisions will be made by panel composed of program provider, public agency representative, and an Opportunity Young Adult. 4. The Mentor-Advocate will work with the Young Adult to develop an MOU of how these funds will achieve milestones in their life plan; additionally, the Mentor-Advocate will connect Opportunity Young Adult to appropriate service providers to access additional stabilization services. 5. Emergency stabilization services will be provided by Opportunity Youth Initiative program providers for employment, housing, health services, GED or certification tests, transportation costs, and clean slate/reentry supports. 6. Immediate financial assistance up to $2,000 will be provided in through a one-time individual grants or loans 7. Asset-building services will be provided by Urban Strategies Council and Opportunity Youth Initiative program providers Sample Design: Individual Loan or Grant Opportunity Young Adult will apply for financial aid up to $2,000 to be used for education, employment, legal or family support assistance The OY Emergency Fund will finance the aid as a direct loan or grant product or promissary note through a Credit Union partner Stabilization Support Services OY Emergency Fund will be used to pay for immediate needs (eg restitution, housing, GED test fees) OY will have access to stabilization supports through OY Service Providers including legal, health, adult education, and job training services Asset Building OY Emergency Fund recipients canparticipate in Asset Building workshops (eg AC CAN Saavy Consumer) OY will have option to pay back loan to Credit Union monthly over mo period, reported to credit bureau to build credit After loan is paid off, it will be released by Credit Union as an IDA account Opportunity Youth Emergency Fund 2

3 Design Considerations: To finalize the design of the OY Fund, we will consider the design questions (list not exhaustive): I. Financing the OY Fund a. Existing income/asset development services and resources offered by other asset building agencies (credit unions, public agencies, community partners)? b. Existing public funding available for assistance loans or grants, e.g. Title IV-E, TANF Innovation Grants, etc. c. Additional resources that can be supplemented by community partners and public agencies within the Opportunity Youth Initiative. II. Administering the OY Fund a. Should the OY Emergency fund be awarded as microloan (paid back over time to build credit similarly to IDA) or as a direct microgrant? b. What are the appropriate legal/financial vehicles to create and administer individual loans? e.g. Could USC partner with Credit Union to finance a loan product or promissory note using the OY Fund as collateral? c. Are there eligibility guidelines that would be required but may exclude Opportunity Youth from applying? d. How will we measure outcomes for success? e.g. secured housing/employment, increased credit scores, etc. Opportunity Youth Emergency Fund 3

4 Appendix 1 Identified Barriers to Employment and Education Pathways for Opportunity Youth: Juvenile records Felony laws Law enforcement practices Driver s license (access and eligibility) Immigration / residential status Language access barriers Transportation Adult cultural competency Youth employer relations Restitution Fines remain in custody until paid off Credit Scores Child support orders Housing Quality / affordable child care Socioemotional wellness / affective domain Mental health /healing and wellness Coordination of wrap around support services (effective case management) Shared case records across systems / agencies Identifying students/youth who leave the system and building pathways to re-engage them Trauma assessment Personal development and readiness supports Opportunity Youth Fund 4

5 Appendix 2 Best Practices and Models for Opportunity Youth Asset Development Juma Ventures Individual Development Accounts: Juma pioneered the concept of the Individual Development Account (IDA) for youth, and currently operates one of the largest and most successful youth IDA programs in the U.S. The IDA program enables Juma youth to establish savings accounts, begin to save money from their paychecks, obtain money management education, and receive matching funds to accelerate their savings toward college-related expenses. Money saved and matched in a Juma IDA can be used only for college-related expenses and is usually issued directly to the college. Since the IDA program was established in 1999, Juma youth have saved more than $783,000 in their IDAs and earned nearly $960,000 in matching funds. In addition, Juma students receive education classes that teach them how to budget, determine needs from wants, build credit, and avoid unnecessary fees or high-interest loans. People s Credit Union Fresh Start: Fresh Start is a loan secured with a deposit and is an excellent option for someone who is interested in starting their credit score for the first time or for a second chance. PCU will deposit and hold the loan funds in your Savings account. Your monthly loan payment activity will be reported to the credit bureaus over the course of the loan, giving you the chance to build a positive credit history. After you pay off the loan, PCU will release the full amount of the loan plus all dividends to you. This is a credit builder loan where the loaned funds are placed in a savings account to serve as collateral until the loan has been paid off. $500 to $ % APR (above rate of share collateral) No credit report required Income verification required Must qualify for membership with the credit union First Place For Youth My First Place & Economic Literacy program The Unity Council Home Ownership Center: Financial Empowerment Bootcamp Sessions Workforce Development Program Youth Uprising YU Job Readiness & Social Enterprises Opportunity Youth Fund 5