CAAB Launches the DC Family Financial Recovery Fund, an Innovative Non-Conditional Cash Transfer and Financial Wellness Initiative
Providing Cash Transfers and Financial Wellness Services to Low-Income Families—Regardless of Immigration Status--in Washington, DC
Washington, DC – May 4, 2020 - Capital Area Asset Builders (CAAB) has launched an innovative non-conditional cash transfer and financial wellness initiative—DC Family Financial Recovery Fund—to provide liquidity to low-income families, regardless of immigration status, who have recently experienced unemployment and/or have had significant reduction in employment hours and mitigate the impact of COVID-19 on their financial health. This initiative is supported by a grant from the Greater Washington Community Foundation.
With the spread of COVID-19 and the economic disruption the pandemic is having across Washington, DC, we have started to see that DC low-income residents, disproportionately individuals and families of color, have the greatest risk for household de-stabilization. If the pandemic intensifies, CAAB believes the socio-economic challenges faced by low-income DC families will significantly increase.
Income poverty is a way of life for 15% of households in the District of Columbia—a rate twice that of the number of households living in income poverty throughout the Washington metropolitan region. But far more households (41%) are financially vulnerable. African Americans and members of the Latinx community fare even worse: 57% of Latinx and 63% of African American households are liquid asset poor.
Although many residents in the District were earning above poverty wages before the pandemic, these “liquid asset poor” households do not have enough savings to live above the poverty level for just three months if they lose a job, face a medical crisis or suffer another income disruption. This means that more than one out of every two households of color in DC live in a state of persistent financial insecurity and our current work and income disruptions caused by COVID-19 response can result in households falling into debt or even losing a home.
Through the first phase of the DC Family Financial Recovery Fund, CAAB will provide a one-time non-conditional $500 cash transfer to 75 low-income DC residents who have recently experienced unemployment and/or have had significant reduction in employment hours due to COVID-19. Additionally, CAAB will provide Fund beneficiaries with access to virtual financial education classes, virtual one-on-one credit counseling & financial coaching services, information on claiming and maximizing the Earned Income Tax Credit, access to free tax preparation services, and, information on asset building financial services and products.
"CAAB is very excited to launch the DC Family Financial Recovery Fund which is an innovative non-conditional cash transfer and financial wellness initiative for the benefit of low- and moderate-income residents of Washington, DC,” said Joseph Leitmann-Santa Cruz, CAAB’s Executive Director. “Through the DC Family Financial Recovery Fund, CAAB looks forward to financially empower low-income residents of Washington, DC—regardless of their immigration status—in order to mitigate the impact COVID-19 has had in their financial wellbeing and provide them with an opportunity to achieve financial stability.”
Details About CAAB's DC Family Financial Recovery Fund and How to Apply
- What is the DC Family Financial Recovery Fund? The DC Family Financial Recovery Fund is an innovative non-conditional cash transfer and financial wellness initiative launched by Capital Area Asset Builders (CAAB) in May 2020.
- Who can apply to the DC Family Financial Recovery Fund? You have to be a resident of Washington, DC who lost your job due to COVID-19 or had your work hours significantly reduced due to COVID-19. Moreover, your family's total income must not have exceeded $121,300 in 2019.
- How much money can you receive? You can receive $500. There are no strings attached!
- What information/documentation needs to be presented when applying? You need to demonstrate you are a resident of Washington, DC, your most recent tax form (for either 2019 or 2018) and termination/furlough/time reduction notification due to COVID-19.
- What can the money received from the DC Family Financial Recovery Fund be used for? There are no conditions as to how you can use the money. The money is to assist you in any way you need it.
- Are there additional services provided as part of this initiative? In addition to the $500 you can qualify for, you will receive free financial education classes, free credit counseling, free financial coaching and access to free tax preparation services.
- How many people will benefit from this initiative? Through the first phase of the DC Family Financial Recovery Fund, CAAB will provide a one-time non-conditional $500 cash transfer to 75 low-income DC residents.
- How will the money be made available by CAAB? We can do a direct deposit into your existing account at a bank or credit union, or mail you a check.
- Is this initiative only for US citizens and permanent residents? Income-eligible Washington, DC residents, regardless of immigration status, can apply.
- When can you apply to CAAB's DC Family Financial Recovery Fund? Now! Individuals whose income was disrupted by COVID-19 can apply now. We will accept applications until all available spaces are taken.
- Is there a cost to enroll and/or participate? No, you will not be charged anything to enroll and/or participate.
- Who should you contact to apply to CAAB's DC Family Financial Recovery Fund? For further information and to apply, please send an email message to IDAPurchases@caab.org.
About Capital Area Asset Builders
Capital Area Asset Builders (CAAB) is a non-profit organization whose mission is to create opportunities for low- and moderate-income individuals in the greater DC region to build financial security, savings, and wealth for the future.
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