It's this or anarchy

The good that comes from Interfaith Housing’s CASH program

ferguson house

Hutchinson resident Mike Ferguson stands out side his first home, which he bought with the help of Interfaith Housing Services Creating, Assets, Savings and Hope (CASH) program.

If you read my story in Tuesday’s paper about Interfaith Housing Services’ Creating Assets, Savings and Hope program and the difficult it is having selling the tax credits that provide the foundation funding for the program, then you might be interested in the following tables illustrating how and where the money has been put to use in recent years.

Low-income qualified participants attend financial education and other classes, open an Individual Development Account and save toward a goal – such as buying their first home, repairing a home they already own, attending college or vocational school or capitalizing a small business.

Interfaith in turn matches $2 for every $1 the participants save.  Interfaith’s money comes from the sale of 75 percent Kansas income tax credits and a federal grant that matches each dollar they raise from the sale of the tax credits,

But because of a change in state law that now allows only C Corporations to buy the credits, the future of the program is in jeopardy beyond 2014 is in jeopardy.  In past years, C Corporations bought no more than about $10,000 of the $500,000 in available tax credits.

So far this year, C Corporations haven’t bought a single dollar’s worth.  Some C Corporations have switched their status to S Corps to take advantage of Kansas new tax law and escape paying any state income tax. So they have no need for tax credits.  Others have subsidiaries that show operating losses on their books, which are then used to offset the profits of the parent company and avoid taxes.  Still others just aren’t interested because they are headquartered out of state and know nothing about Interfaith and the good produced by the CASH program.

So if you happen to know any CEOs or CFOs and C Corporations, and you have any influence with them, try turning them on to Interfaith.

What’s in it for them?  For every $1,000 they give Interfaith, they can get to knock $750 off their state income tax liability.

And here are the results, compiled from program director Lorna Moore, on how the proceeds have been used.

Note: The “Non-Federal Match” in these tables is money from the sale of the state income tax credits in past years.

First Homes Purchased by IDA Graduates

County Graduates Savings Non-Federal
Match
Federal
Match
Total
Down payment
Funds
Cowley 1 $3,250 $4,500 $2,000 $9,750
Harper 5 $13,886 $16,951 $10,000 $40,837
Haskell 2 $4,000 $4,000 $4,000 $12,000
Reno 27 $80,901 $78,488 $53,583 $212,971
Sedgwick 8 $16,247 $18,813 $13,480 $48,540
Total 43 $118,285 $122,752 $83,063 $324,099

Another 79 clients are currently saving towards first-time home purchases.

Owner Occupied Housing Repair

County Graduates Savings Non-Federal
Match
Federal
Match
Total
Funds
Barton 1 $2,041 $4,000 $6,041
Cowley 2 $3,996 $7,991 $11,987
Ford 2 $5,261 $8,002 $13,263
Harper 1 $227 $453 $680
Kingman 2 $4,426 $8,852 $13,278
Reno 14 $24,011 $47,471 $71,483
Total 22 $39,961 $76,770 $116,730

Another 44 clients are currently saving towards home repair goals.

Post-Secondary Education

County Graduates Savings Non-Federal
Match
Federal
Match
Total
Funds
Barton — Vo Tech 1 $158 $158 $158 $475
Ford 1 $81 $81 $81 $273
Haskell 5 $15,061 $20,000 $10,000 $45,061
Johnson 1 $3,000 $4,000 $2,000 $9,000
Reno — College 1 $132 $132 $132 $395
Reno — Vo Tech 3 $8,787 $11,453 $6,000 $26,240
Stevens 1 $3,027 $4,000 $2,000 $9,027
Sumner 1 $3,000 $4,000 $2,000 $9,000
Total 14 $33,246 $43,824 $22,371 $99,441

Another 75 clients are currently saving so they can continue their education in college of vocational schools.

Small Business Capitalization

County Graduates Savings Non-Federal
Match
Federal
Match
Total
Funds
Meade 1 $3.641 $5,000 $2,000 $10,641
Reno 1 #3,553 $5,000 $2,000 $10,553
Total 2 $7,194 $10,000 $4,000 $21,194

Fourteen more clients are saving towards their goal of starting a small business.

Grand Totals

County Graduates Savings Non-Federal
Match
Federal
Match
Total
Funds
12 80 $198,685 $253,345 $109,434 $561,221

To read other posts on Hutchinson housing issues, click here.

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