AC Foundation 1st Down Initiative

First Down Initiative
A Homeownership Initiative with Associated Mortgage, Green Bay Packers Players,
and Local Community Organizations
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Milwaukee, Wisconsin

The homeownership rate in Milwaukee is approximately 46 percent. Despite gains in the homeownership rate in the 1990s across all racial and ethnic groups, the homeownership rate for minority groups continues to lag far behind the white homeownership rate. According to the 2000 Census, the white homeownership rate in Milwaukee was 55%, while the Asian homeownership rate was 40% and the African American and Hispanic homeownership rate was the lowest at 33%. This disparity between the white and minority homeownership rates is more profound given the fact that Milwaukee is home to the majority of the area’s minority population. While 40% of the metropolitan population lives in the City of Milwaukee, 85% of the area’s minorities live in the City. Furthermore, the city of Milwaukee houses the majority of low-income households and the minority of high-income households. The disparity between the white and minority rates and the high concentration of the area’s low-and moderate income households points to a need for a homeownership strategy targeted at these underserved segments of the population.

First Down is a community-based homeownership initiative designed to increase homeownership among underserved populations and areas in Milwaukee, including minority households and low and moderate-income households. The initiative will capitalize on the relationship between Associated Bank and the Green Bay Packers to create a high profile effort to increase homeownership in Milwaukee by jointly promoting a homeownership awareness campaign and a unique savings program that will assist a selected number of Milwaukee residents in achieving their “First Down” payments and ultimately their dream of Homeownership.

Initiative Overview
First Down is a community-based homeownership initiative in partnership with Associated Mortgage, the Green Bay Packers Players, a local nonprofit, and Freddie Mac. The Initiative is designed to help families in Milwaukee overcome one of the greatest barriers to homeownership – lack of funds for down payment and closing costs. In addition, flexible loan products will be offered to help families overcome any credit challenges and out reach education will be offered to raise awareness. First Down utilizes Individual Development Accounts (IDA) to provide a savings vehicle to low- and moderate-income families to help them accumulate the funds needed for down payment and closing costs.

IDAs are matched savings accounts designed to encourage savings efforts of targeted individuals by offering 1:1, 2:1, or more generous match for each dollar of their own deposit. IDAs reward the monthly savings of families who are trying to buy their first home, pay for post-secondary education, or start a small business. IDA programs are implemented by community-based organizations in partnership with a financial institution that holds the deposits, and are funded by public and private sources. Similar to 401(k)s, IDAs make it easier for low-income families to build the financial assets they need to achieve the American Dream. Populations that have benefited from participation in IDA programs include former welfare recipients, youth in disadvantaged urban and rural schools, recent refugees, and the working poor.

Every dollar saved by a family participating in the First Down program will be matched by a 2 to 1 ratio. For example, the family saves $500 and would be given $1,000 in matched funds. Matching funds will be provided by Green Bay Packers players through tax-deductible contributions to the IDA accounts managed by a 501(c)(3) non-profit organization. The non-profit organization will manage the matched funds and provide families with homebuyer education and counseling to prepare families for homeownership. Freddie Mac and Associated Mortgage would support the program by providing grant support to the chosen non-profit, funding a community-wide marketing campaign to advertise the program, and providing flexible mortgage products that can help the families overcome credit challenges. Associated Bank will additionally hold the funds for each family in Associated Bank restricted savings accounts.

First Down represents a tremendous community relations opportunity. A “touchdown” celebration will be held at the newly purchased home of each Packers-sponsored family, at which time the family will receive keys from the player who partnered with them to provide matched savings for their home purchase. In addition, a plaque will be placed in front of every home with the Green Bay Packers and Associated Bank logos, along with the player’s name and jersey number. The inscription on the plaque could read:

The plaque would serve as a reminder of the Green Bay Packers’ commitment to the community. The initiative would also provide a strong connection to the team and every family that purchases a home, and it would serve as national model that other teams could duplicate. First Down will enhance the reputations of all the partners.