41% 64% 10% 16% 17% PROFILE. ASSetS & opportunity ProfILe: SAvANNAh. KeY highlights. About the Profile ASSETS & OPPORTUNITY

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1 ASSetS & opportunity ProfILe: SAvANNAh ASSETS & OPPORTUNITY PROFILE KeY highlights 41% of Savannah 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. Savannah 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 Savannah 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. 64% of Chatham County residents have subprime credit scores 10% of Savannah households are unbanked 16% of Chatham County mortgages are high-cost mortgages loans 17% of Chatham County residents are uninsured 9% of Savannah households have self-employment income 1

2 financial empowerment in savannah We want all Savannah residents to acquire the knowledge and skills necessary to take control of their financial destiny. The ability to save, to invest in education, to obtain affordable housing, or start a business in short, to live out the American Dream is what moves families ahead. Savannah Mayor Otis Johnson Savannah s poverty rate is 22 percent for the city s population overall and is significantly higher in five of its census tracts. Poverty is often defined by the lack of consistent income, a regular job. But the inability to save money, manage finances or pay for and maintain such assets as a stable home, reliable transportation, and higher education can keep even motivated families from getting ahead. Owning assets is associated with increased economic security and well-being. The City of Savannah manages its poverty reduction efforts through its Bureau of Public Development and a coalition called Step Up Savannah, which combines the strengths of government, business and nonprofit agencies. Step Up Savannah and the City of Savannah seek to ensure that all its residents are able to participate in a strong local economy, and have ready access to affordable financial products and services they understand. Step Up has also begun to develop and promote new local and state asset-building policies for low-income families. Savannah focuses on the following areas of asset building: Free Tax Preparation Financial Education Classes Banking the Unbanked Homeownership IDA Programs Micro lending/entrepreneurship Public Policy About the Bureau of Public Development, City of Savannah The Public Development Bureau develops and supports partnerships that help build and sustain safe and physically attractive neighborhoods, a socially healthy community, and an economically prosperous city. The bureau is managed by the Public Development Bureau Chief, who is one of two assistant city managers. ABOUT Step Up Savannah, Inc. Step Up Savannah works to bring together business, government, social service agencies, and individuals who seek to reduce Savannah s persistent poverty by identifying and removing barriers that prevent families from attaining economic self sufficiency. Partners ACCION Bank On Savannah Chatham Savannah Asset Development Coalition Community Planning and Development Department Consumer Credit Counseling Service Economic Development Department Georgia s Own Credit Union Housing Department Equal Opportunity Authority Neighborhood Improvement Association Savannah Entrepreneurial Center Small Business Assistance Corporation United Way of the Coastal Empire 2 MUNICIPAL profile: SAvannah

3 CFED: ASSETS & OPPORTUNITY PROFILE financial empowerment opportunities in savannah CENTERS FOR WORKING FAMILIES Integrate financial coaching into job training, adult education, GED preparation, and other support services offered at a network of community-based neighborhood centers. Centers include Moses Jackson Family Advancement Center, St. Mary s Community Center, St. Pius X Family Resource Center, and Union Mission s Employment and Training Center. SUPPORTING WORK Step Up engages local employers in strategies to increase the spending power of their low-wage workers, including boosting participation rates in direct deposit through account openings, pay cards, and providing financial education at business sites. It also educates workers about high-cost financial products and the negative impact to personal spending power, and presents information about low-cost financial alternatives. Offer public work supports (food stamps, children s health insurance, and the Earned Income Tax Credit) as part of the employers new hire process. BANK ON SAVANNAH Working with 11 area banks to create a positive banking relationship for previously un-banked residents and providing a second chance for those with a damaged credit history. PROMOTE ENTREPRENEURSHIP The Savannah Entrepreneurial Center provides opportunities to start and expand microenterprises. Provides training for microenterprises, which is complemented by mentoring, technical assistance, business incubators, and access to financial resources. MICROLOANS ACCION and Small Business Assistance Corp. offer capital to entrepreneurs. The City makes loans available through SBAC to small businesses in low to moderate income neighborhoods, to minority-owned businesses and those that will create jobs for low to moderate income individuals. SBAC offers Small Steps to Success loans, and ACCION offers loans online to Savannah micro-entrepreneurs. FINANCIAL EDUCATION Provide free workshops open to the public on managing money, savings, personal budgeting, credit reports and scores, offered at public libraries, churches, employment sites and other locations as requested. INDIVIDUAL DEVELOPMENT ACCOUNTS (IDAs) Established in partnership with the City of Savannah and Economic Opportunity Authority to help residents start their own business. Match $4 for every $1 contributed, up to $50 per month. The Neighborhood Improvement Association also offers firsttime homebuyers an IDA program with a three to one match up to $1,200 over a 12 to 24 month period. Funds are matched to reward low to moderate income families for monthly savings by the United Way of the Coastal Empire. VOLUNTEER INCOME TAX ASSITANCE The Chatham Savannah Asset Development Coalition operates 15 sites offering eligible taxpayers free income tax preparation, assistance in filing for the Earned Income Tax Credit, and now also provides access to an Alternate Rapid Anticipation Loan RESULTS More than 580 new bank accounts opened 3,500 residents have taken financial education classes 3,450 tax returns prepared at VITA sites; $2,214,000 in Earned Income Tax Credit claimed ARAL established; $229,000 disbursed 97 families case managed through Centers for Working Families 34 micro-loans through ACCION and SBAC 3

4 about the data The data in the Profile includes a look at households in asset poverty, a demographic snapshot of Savannah, 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 Chatham 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 Savannah, 31% of those earning between $37,741 and $59,604 are asset poor. PERCENT OF HOUSEHOLDS... City of... Chatham...Savannah,... Georgia... United IN ASSET POVERTY All Households % % % % % By Housing Tenure Homeowner % % % % % Renter % % % % % By Race % % % %... Minority % % % %... Black % % % % % 39.8% 45.8% Latino % % % % % % % Native American % % By Education High School % % % %... Some College % % % %... Bachelor s Degree % % % % % 26.2% 15.4% Advanced Degree % % % % % 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: SAvannah

5 CfeD: ASSetS & opportunity ProfILe SAvANNAh PoPULAtIoN DeMoGrAPhICS MeASUre... City of... Chatham...Savannah,... Georgia... United Total Population , , , ,331, ,757, % % % % % % % % % % % % % % %, Other Pacifi c Islander % % % % % % % % % % U.S. Citizen % % % % % Speak English Less Than Very Well % % % % household finances & USe of ServICeS MeASUre... City of... Chatham...Savannah,... Georgia... United Median Household Income... $32, $43, $46, $48, $50,007 Income Poverty Rate % % % % % Asset Poverty Rate % % % % % Extreme Asset Poverty Rate % % % % % Hseholds w/ Interest, Dividend or Net Rental Income 14.4% % % % % Tax Filers Receiving EITC % % % % % Average EITC Refund... $2, $2, $2, $2, $1,932 Unbanked Households... 10%... 9%... 9% % Median Credit Score Consumers with Subprime Credit Scores % % % % Average Revolving Debt $11, $11, $11, $11,863 Average Revolving Credit Utilization % % % % Average Installment Debt $24, $24, $24, $23,717 Borrowers 90+ Days Overdue % % % % household Income by race $27,120 $41,993 $40,964 $44,667 Income Poverty by race 5.5% 23.2% 0 $10k $20k $30k $40k $50k 0 5% 10% 15% 20% 25% employment & BUSINeSS ownership MeASUre... City of... Chatham...Savannah,... Georgia... United Annual Unemployment Rate % % % %... Average Annual Pay $37, $42, Self-Employment % % % %... Microenterprise Ownership Rate Vehicle Non-Availability by Working Household % % % % % $44, % % 5

6 housing & homeownership MEASURE... City of... Chatham...Savannah,... Georgia... United Homeownership Rate % % % % % Cost Burdened Renters % % % % % Cost Burdened Owners % % % % % Affordability of Homes Average Mortgage Debt $171, $169, $171, $195,500 High-Cost Mortgage Loans % % % % Foreclosure Rate % % % % % 59.0% Homeownership by Race 25.0% 41.6% 53.7% 0 10% 20% 30% 40% 50% 60% educational attainment MEASURE... City of... Chatham...Savannah,... Georgia... United 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 74.8% 68.4% 91.2% Bachelor s Degree by Race 9.9% 33.0% 38.2% 0 20% 40% 60% 80% 100% 0 10% 20% 30% 40% health insurance MEASURE... City of... Chatham...Savannah,... Georgia... United Uninsured Rate % %... Uninsured Low-Income % %... Uninsured Low-Income Children % % % 29.4% 18.3% 6 MUNICIPAL profile: SAvannah

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 non-profit 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: SAvannah PUBLIShed June 2010