34% 69% 12% 18% 23% 25% PROFILE. ASSeTS & opportunity ProfILe: SAN ANToNIo. KeY HIGHLIGHTS ABOUT THE PROFILE ASSETS & OPPORTUNITY

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1 ASSeTS & opportunity ProfILe: SAN ANToNIo ASSETS & OPPORTUNITY PROFILE KeY HIGHLIGHTS 34% of San Antonio households live in asset poverty Cities have long been thought of as places of opportunity for low-income workers to forge pathways to the middle class. But far too many urban households struggle to gain a foothold in the mainstream economy. In major U.S. cities, one out of every four households owe more than they own, and almost 60% of consumers have subprime credit scores. More than one-third of families do not have enough assets to live for three months at the federal poverty level should they lose their main source of income. Not only does financial insecurity destabilize families, it also jeopardizes the long-term vitality of cities and local economies. That is why a growing number of local leaders are seeking to expand the vision of what municipal government can and should do to stabilize the financial lives of their low-income residents. These Financial Empowerment programs involve a set of approaches designed to help families manage their money and avoid bad debt, create strategies for saving, and access appropriate financial products and services. Financial empowerment programs typically focus on four key areas: improving access to financial services; advancing financial education and coaching; encouraging asset building and protection; and promoting tax time services and benefits. San Antonio has joined with a group of 10 leading cities to form the Cities for Financial Empowerment (CFE) coalition, which is striking a new path towards integrating income enhancement, saving incentives and asset development. These programs, when coupled with enhanced consumer protection policy, are changing the paradigm for poor families in our urban centers. ABOUT THE PROFILE This Assets & Opportunity Profile was created to fuel a local conversation about wealth, poverty and opportunity. It contains a data snapshot of the financial security and stability of San Antonio residents, and provides an overview of the efforts that the city is supporting to help financially educate, empower and protect residents and enable them to build a more prosperous future. 69% of Bexar County residents have subprime credit scores 12% of San Antonio households are unbanked 18% of Bexar County mortgages are high-cost 23% of San Antonio residents have at least a bachelor s degree 25% of Bexar County residents are uninsured 1

2 financial empowerment in san antonio San Antonio, with a population of nearly 1.3 million residents, is one of the fastest growing cities in the United States. The City s residents, primarily Hispanic, Anglo and African American, hold the area s historic past close as they rapidly move into the future. Today nearly 1 out of every 5 residents of San Antonio receives the Earned Income Tax Credit (EITC). Nevertheless, according to the IRS, approximately 25% of those eligible for the credit are still not receiving it, and nearly one out of five San Antonio families live in poverty. In an effort to maximize the eligible participation in the EITC, put money into the pockets of the low and moderate income population, and grow the local economy, San Antonio embarked on a strategy of household financial empowerment in 2001 that started with increasing participation in the Earned Income Credit. In 2001, the City of San Antonio, through the Department of Community Initiatives, partnered with the Internal Revenue Service (IRS), United Way of San Antonio, Catholic Charities Archdiocese of San Antonio, and Making Connections, an Annie E. Casey funded effort focused on improving the overall well-being of San Antonio s Westside residents, to form a coalition for family economic progress. The coalition s objectives were to increase awareness of the EITC and provide free federal income tax return preparation assistance through the VITA program to qualifying lower income taxpayers. In its first year, the coalition completed more than 4,000 tax returns, doubling the previous year s results. Since 2001, the coalition has continued to expand its tax preparation capability, while at the same time adding asset building to its objectives. In August 2008, the original coalition merged with the Alamo City Coalition for Economic Self-Sufficiency (ACCESS). This community-wide coalition strives to increase economic self-sufficiency, create powerful asset building opportunities and further maximize enrollment in the EITC. Coalition membership now totals more than 40 local organizations including nonprofit service providers, businesses, financial institutions, colleges and universities. Together, San Antonio s community partnership offers a free alternative to the high-cost Refund Anticipation Loan of paid tax preparers, direct enrollment in IDA matched savings accounts and auto refinance for debt reduction at area VITA free tax preparation sites, small business tax return preparation, financial literacy education, home foreclosure prevention, and emergency assistance with utility bills to prevent disconnection and costly re-hook up fees. San Antonio works tirelessly to increase participation in existing programs and create new opportunities for the financial empowerment of the families in our community. for more information Richard Keith Special Projects Manager Office of Financial Empowerment City of San Antonio Department of Community Initiatives 1325 N Flores San Antonio, TX Tel: richard.keith@sanantonio.gov 2 MUNICIPAL profile: SAN ANTONIO

3 CFED: ASSETS & OPPORTUNITY PROFILE financial empowerment opportunities in san antonio VOLUNTEER INCOME TAX ASSISTANCE (VITA) Provide free income tax preparation to tax payers earning up to $45,000 at 25 VITA sites. San Antonio Community Tax Center also provides Schedule C business return preparation and serves as an IRS agent for immigrant Individual Taxpayer Identification Number (ITIN) applications. REFUNDEXPRESS Partner with Generations Federal Credit Union to provide taxpayers a no-fee or interest alternative to refund anticipation loans (RALs) offered by commercial tax preparers that often include high fees and interest rates costing low-income taxpayers hundreds of dollars. BANK ON SAN ANTONIO Working with area banks and credit unions to create a positive first banking relationship for previously unbanked San Antonio area residents and provide a second chance for those with a prior record of poor credit or banking difficulties. FAIR HOUSING AND HOME FORECLOSURE PREVENTION Task force of 24 agencies and organizations that provides counseling services on fair housing issues and to those facing foreclosure. FINANCIAL LITERACY Provide financial literacy education classes for residents through neighborhood learning centers, and one-on-one financial coaching for area renters receiving homeless prevention assistance. INDIVIDUAL DEVELOPMENT ACCOUNTS (IDAs) Match $4 for every $1 saved by eligible low-income families toward postsecondary education, homeownership or small business ownership. Maximum of $1,000 in personal savings matched for a total of $5,000. A partnership with Security Services Credit Union allows taxpayers to open an IDA at VITA sites. USED VEHICLE PURCHASE PROGRAM Match $8 for every $1 saved by participants toward the purchase of any used vehicle. IDA WORKING FAMILY VEHICLE PURCHASE PLAN Partner with Ford Motor Company to match $2 for every $1 saved by participants towards the purchase of a Ford or Mercury vehicle. AUTO RE-FINANCE FOR DEBT REDUCTION Partner with two local credit unions to offer refinancing options for those with APR over 9% on existing car loan. MAKING CONNECTIONS SAN ANTONIO Neighborhood-based initiative aimed at improving lives of children s West Side through improved social networks and connections in the community CENTERS FOR WORKING FAMILIES Connect families and individuals to bundled services including work supports, employment skills-building activities and mainstream financial services. RESULTS IN FY ,663 residents with new bank accounts 2,145 tax refund loans through alternative RAL program 39,322 tax returns prepared $71 million returned to residents through community tax centers 1,111 home foreclosures avoided through foreclosure prevention services 49 residents have completed an asset purchase using an IDA match savings accounts 1,649 residents completed financial literacy education 3

4 about the data The data in the Profile includes a look at households in asset poverty, a demographic snapshot of San Antonio, and outcomes in five categories essential to building assets and long-term financial security in today s economy: Household Finances & Use of Services, Employment & Business Ownership, Housing & Homeownership, Educational Attainment, and Health Insurance. Taken together, these five categories provide a comprehensive look at the financial stability and economic resiliency of families and Bexar County. HOUSEHOLDS IN ASSET POVERTY Asset poverty is a measure that expands the notion of poverty to establish a minimum threshold of wealth needed for household security. A household is asset poor if it has in sufficient net worth to support itself at the federal poverty level for three months in the absence of income, i.e., net worth of less than $4,577 for a family of three in Asset poor households would not have enough savings or wealth to provide for basic needs during a sudden job loss or a medical emergency. Minority and single-parent households are more likely to be asset poor, as are those with lower levels of education. Even middle income families face asset poverty. In San Antonio, 27% of those earning between $37,741 and $59,604 are asset poor. PERCENT OF HOUSEHOLDS... City of...bexar...san Antonio,... Texas... United IN ASSET POVERTY All Households % % % % % By Housing Tenure Homeowner % % % % % Renter % % % % % By Race % % % %... Minority % % % %... Black % % % %... Latino % % % % % % % %... Native American % % % % % 39.8% 45.8% 41.2% 17.6% 39.7% By Education High School % % % %... Some College % % % %... Bachelor s Degree % % % %... Advanced Degree % % % % % 26.2% 15.4% 10.6% By Age of Householder < % % % % % % % % % % % % % % % % % 24.3% 17.6% 13.6% By Marital Status Married % % % %... Household with Children % % % % % 27.6% Single Parent % % % % % By Poverty Status Below Income Poverty Line % % % % % Above Income Poverty Line % % % % % By Household Income Below $19, % % % % % $19,993-$37, % % % % % $37,741-$59, % % % % % $59,605-$93, % % % % % Above $93, % % % % % 4 MUNICIPAL profile: SAN ANTONIO

5 CFED: ASSETS & OPPORTUNITY PROFILE san antonio population demographics Total Population... 1,267, ,555, ,936, ,385, ,757, % % % % % % % % % % % % % % %, % % % % % % % % % % U.S. Citizen % % % % % Speak English Less Than Very Well % % % % % household finances & use of services Median Household Income... $42, $44, $46, $46, $50,007 Income Poverty Rate % % % % % Asset Poverty Rate % % % % % Extreme Asset Poverty Rate % % % % % Hseholds w/ Interest, Dividend or Net Rental Income. 17.1% % % % % Tax Filers Receiving EITC % % % % % Average EITC Refund... $2, $2, $2, $2, $1,932 Unbanked Households... 12%... 11%... 10% % Median Credit Score Consumers with Subprime Credit Scores % % % % Average Revolving Debt $6, $7, $6, $11,863 Average Revolving Credit Utilization % % % % Average Installment Debt $23, $24, $24, $23,717 Borrowers 90+ Days Overdue % % % % Household Income by Race $45,923 $33,259 $44,729 $53,900 $49,126 $35,419 Income Poverty by Race 12.0% 19.5% 20.1% 0 $10k $20k $30k $40k $50k $60k 0 5% 10% 15% 20% 25% employment & business ownership Annual Unemployment Rate % % % % % Average Annual Pay $39, $44, $44,458 Self-Employment % % % % % Microenterprise Ownership Rate Vehicle Non-Availability by Working Household % % % % % 5

6 housing & homeownership Homeownership Rate % % % % % Cost Burdened Renters % % % % % Cost Burdened Owners % % % % % Affordability of Homes Average Mortgage Debt $122, $126, $135, $195,500 High-Cost Mortgage Loans % % % % Foreclosure Rate % % % % % Homeownership by Race 64.3% 44.8% 48.7% 61.7% 31.4% 58.4% 0 20% 40% 60% 80% educational attainment Less than High School % % % %... High School Degree % % % %... Associate s Degree % % % %... Bachelor s Degree % % % %... Graduate or Professional Degree % % % % % 84.0% 34.4% 27.0% 9.9% High School Degree by Race 68.6% 82.6% 84.0% 81.9% 86.5% Bachelor s Degree by Race 12.4% 19.4% 21.3% 27.4% 49.2% 0 20% 40% 60% 80% 100% 0 10% 20% 30% 40% 50% health insurance Uninsured Rate % %... Uninsured Low-Income % %... Uninsured Low-Income Children % % % 29.4% 18.3% 6 MUNICIPAL profile: SAN ANTONIO

7 CFED: ASSETS & OPPORTUNITY PROFILE data measures & SOURCES Population Demographics Household Finances and Use of Services Employment and Business Ownership Data Measure Measure Description Source Total Population Total population Percentage of population that is, non-hispanic, Other Pacific Islander Percentage of population that is, non-hispanic Percentage of population that is or Alaska Native, non-hispanic Percentage of population that is, Native Hawaiian or, non-hispanic Percentage of population that is U.S. Citizen Percentage of population that are U.S. citizens Speak English Less Than "Very Well" Percentage of population that speaks English less than "very well" Median Household Income Median household income in the past 12 months Income Poverty Rate Asset Poverty Rate Extreme Asset Poverty Rate Households with Interest, Dividend, or Net Rental Income Tax Filers Receiving EITC Percentage of all families with income in the past 12 months below the federal poverty threshold Percentage of households without sufficient net worth to subsist at the poverty level for three months in the absence of income Percentage of households that have zero or negative net worth Percentage of households reporting any interest, dividend, or net rental income in the past 12 months Percentage of tax filers receiving the federal Earned Income Tax Credit Estimates calculated by Beacon Economics, based on U.S. Census Bureau's 2004 Survey of Income and Program Participation, Wave 6 (2006) and American Community Survey Estimates calculated by Beacon Economics, based on U.S. Census Bureau s 2004 Survey of Income and Program Participation, Wave 6 (2006) and American Community Survey Brookings Institution (2006) Average EITC Refund Average EITC refund amount per EITC filer Brookings Institution (2006) Unbanked Households Percentage of households lacking both a checking and savings account. Median Credit Score Median TransUnion TransRisk Score TransUnion (Q1 2009) Consumers with Subprime Credit Scores Percentage of consumers with a TransRisk Score <=700 [on a scale of ] Estimates calculated by Mia Mabanta, Pew Safe Banking Opportunities Project, based on data from the Federal Reserve Board's Survey of Consumer Finances (2007); U.S. Census Bureau, American Community Survey; and data on the location of retail financial services locations TransUnion (Q1 2009) Average Revolving Debt Average amount of revolving debt per revolving borrower TransUnion (Q1 2009) Average Revolving Credit Utilization Average utilization of available revolving credit TransUnion (Q1 2009) Average Installment Debt Average amount of installment debt per installment borrower TransUnion (Q1 2009) Borrowers 90+ Days Overdue Annual Unemployment Rate Average Annual Pay Self-Employment Microenterprise Ownership Rate Vehicle Non-Availability by Working Household Percentage of borrowers who are 90 days or more past due on any debt payments Annual average unemployment rate of the civilian noninstitutional population 16 years of age and older Average annual pay for all workers covered by unemployment insurance Percentage of households reporting any self-employment income in the past 12 months Number of firms with 0-4 employees (non-employer firms plus establishments with 1-4 employees), per 100 people in the labor force Percentage of households (with at least one worker) lacking access to a vehicle TransUnion (Q1 2009) U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics (2009) U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2007) CFED calculation based on U.S. Census Bureau, Non-Employer Statistics, 2006; and 2006 County Business Patterns. Health Insurance Uninsured Rate Percentage of non-elderly population without health insurance U.S. Census Bureau, Small Area Health Insurance Estimates (2005) Uninsured Low-Income Uninsured Low-Income Children Percentage of non-elderly population at or below 200% or 250% (depending on the state) of the federal poverty line without health insurance Percentage of children under 19 years of age at or below 200% of the federal poverty line without health insurance U.S. Census Bureau, Small Area Health Insurance Estimates (2005) U.S. Census Bureau, Small Area Health Insurance Estimates (2005) 7

8 CFED: ASSETS & OPPORTUNITY PROFILE Housing & Homeownership Data Measure Measure Description Source Homeownership Rate Percentage of occupied housing units that are owner occupied Cost Burdened Renters Cost Burdened Owners Affordability of Homes Percentage of renter-occupied units spending 30% or more of household income on rent and utilities Percentage of mortgaged owners spending 30% or more of household income on selected monthly owner costs Median housing value divided by median household income Average Mortgage Debt Average mortgage debt per mortgage borrower TransUnion (Q1 2009) High-Cost Mortgage Loans Percentage of all conventional first lien home purchase loans (1-4 family, owner occupied dwelling) with interest rates three percentage points or more above the yield on a comparable term treasury security CFED calculation based on U.S. Census Bureau, American Community Survey data Calculation by Center for Responsible Lending based on Home Mortage Disclosure Act (HMDA) data (2007) Foreclosure Rate Percentage of all mortgage loans that are in pre-or postsale foreclosure NeighborWorks America (March 2009) Less than High School Percentage of population 25 and older who have not completed high school Educational Attainment High School Degree Associate's Degree Bachelor's Degree Graduate or Professional Degree Percentage of population 25 and older who have at least a high school degree Percentage of population 25 and older who have at least an associate's (2 year college) degree Percentage of population 25 and older who have at least a bachelor's (4 year college) degree Percentage of population 25 and older who have a graduate or professional degree about cities for financial empowerment CFE provides a platform for municipal governments to advance innovative financial empowerment initiatives both locally and nationally, leveraging resources in the service of at-risk communities. CFE members have a unique role in the field of Financial Empowerment by utilizing cities access to residents through multiple touch points and their unique ability to employ municipal tools like zoning, licensing, and local regulation to implement effective programs and policies. Coalition members work together to pursue promising strategies and programming in their own cities, and in collaboration with public, private, and nonprofit sectors. Member cities have made measurable commitments to increase public awareness of critical issues, create pathways for financial stability, and advocate for policy changes at the federal level. about CFED CFED (Corporation for Enterprise Development) expands economic opportunity by helping Americans start and grow businesses, go to college, own a home, and save for their children s and own economic futures. We identify promising ideas, test and refine them in communities to find out what works, craft policies and products to help good ideas reach scale, and develop partnerships to promote lasting change. We bring together community practice, public policy and private markets in new and effective ways to achieve greater economic impact. We gratefully acknowledge support for this profile from Living Cities. 8 MUNICIPAL profile: SAN ANTONIo PUBLISHed June 2010