1/27/2004

Contact: K.E. Schwab  -- 724-738-2199;  e-mail: karl.schwab@sru.edu

Economic Benefits for Butler, Beaver Counties --

SRU PROFESSOR’S PROGRAM INTENDED TO BOOST COMMUNITY HOME OWNERSHIP,

HOME IMPROVEMENTS BY PROVIDING FAMILY SAVINGS ACCOUNT MATCHING FUNDS

           SLIPPERY ROCK, Pa. – A plan that will boost community home ownership and aid in home improvements drafted by Slippery Rock University government and public affairs professorDr. Mark Daniels has received the go ahead with a $219,000 grant from the Pennsylvania Department of Community and Economic Development.

The approved plan, which could also provide economic boosts for the region, calls for establishment of  a Family Savings Account Program in Butler and Beaver counties. The program, which is now accepting applications,  is administered by the Housing Authority of Butler County.

To be eligible, a family can have a combined income of up to 200 percent above the national poverty income level.

As an example, Daniels, a member of the SRU faculty since 1997, explains “A family of four earning up to $36,800 a year could be eligible. Participating families will establish a savings account at a local bank and agree to deposit up to $20 each week for a year. At the end of the year, the housing authority will match the savings balance up to $1,000 – and the bank will pay appropriate interest on the account.”

“The idea came about while I was looking at the Pennsylvania Department of Community and Economic Development’s Web site and saw the saving account program. I realized the program tied to my 2001 book ‘Creating Sustainable Community Programs’ and made the connection that both Butler and Beaver county residents could benefit if a grant was approved,” says Daniels.

Eligible families of all sizes and of all ages, including the elderly, may participate, he says, noting savers must attend four financial literacy classes during the year and agree at the account’s onset what the savings will be used for.

“A family can participate for up to two years, thus the potential account balance at the end of the second year could exceed $4,000, including deposits made by the family, matching funds and accrued interest,” he explains. “The savings can be used for a capital purchase agreed upon in advance, such as a house down payment, a car, improvements to an existing home or other major purchases. This is a sustainable community program designed to strengthen communities in Pennsylvania through home ownership, home improvement, transportation for improved job opportunities or other family support purchases.”

Steven Chopek, a 2002 SRU public administration graduate, assisted with grant’s preparation.

For more information about the Family Savings Account Program, call the Housing Authority of Butler County at 800-433-6327.

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