On Thursday, December 8 the Rocket Community Fund and Local Initiatives Support Corporation (LISC) unveiled the Rocket Wealth Accelerator Program, which is aimed at addressing the systemic disinvestment of Black community wealth and financial stability.
The $2million program was conceived to help alleviate the widening wealth gap between Black and White homeowners over the decades. Piloted in Detroit, Atlanta, Cleveland, and Milwaukee, thousands of residents will have access to mentors and resources to advance their financial goals.
“We’re really proud of the Rocket Community Fund’s mission to focus on breaking down some of these complex and inequitable systems to drive systemic change that will help every American have access to safe and affordable housing,” said Laura Granneman, vice president of the Rocket Community Fund. “As the nation’s largest mortgage lender, we deeply understand the power of a stable home.”
The health of a family’s financial stability can critically impact their ability to afford housing, save for an emergency, or exercise good habits that can otherwise cause a devastating setback felt for generations.
According to a 2022 report by Consumer Financial Protection Bureau on emergency savings and financial security, 41% of Black consumers have no emergency savings, compared to 19% of White consumers.
The survey findings consider the “disparities in the historical context of policies that limited the wealth building and upward mobility of non-White Americans, especially Black Americans.” Although the Fair Housing Act of 1968 struck down discriminatory housing practices, such as redlining, the detrimental impact is still faced by generations of Black Americans.
“The program is designed to help our residents repair their credit scores, help save for that down payment, and the city’s got a significant down payment assistance to help,” said Mayor Duggan.
But there was a time when homeownership was a pride of this city. It has long been a source of wealth accumulation and what Rocket Community Fund is doing today is help get us back on that path.”
How It Works
Over the next three years, Rocket Community Fund, LISC and community partners will pair clients with financial coaches to focus on short-term, medium and long-term goals. Clients will learn how to secure an emergency fund, build credit, and grow generational wealth.
The 18-month program will also include matching dollars determined by clients’ savings plans. For people pursuing a home or vehicle will receive up to $500 and those with short-term emergency savings goals will be matched up to $300.
The program seeks to serve an estimate 2,000 clients, including 80% of people of color. Of those 2,000 clients, the savings program seeks to:
- Have 1,000 clients create a spending plan with their financial coaches, building their
financial know-how and creating savings goals
- Assist 500 clients in increasing their credit score
- Work with 750 clients in increasing their short-term savings, with 60% of those increasing their savings by at least 25%.
In addition, participants will receive a free, three-month subscription to Rocket Money, a part of Rocket Companies, which guides readers on managing subscriptions, mitigating bills and budgets with efficient savings techniques in time and money.
How Residents Can Participate
The accelerator program will be administered by LISC’s partners in community-based organizations, part of their Financial Opportunity Center network in Detroit and the other three cities.
In Detroit, residents can access the program at the following FOC locations: SER-Metro Detroit, Wayne Metro Community Action Agency and the International Institute of Metropolitan Detroit.
At the Thursday press conference, Eva Garza Dewaelsche, president and CEO of SER-Metro Detroit spoke on the organization’s 14 year commitment toward providing financial coaching to residents and will be expanding their services with the accelerator program’s sustainable model of resources
“I want to thank LISC and the Rocket Community Fund for creating the Rocket Wealth Accelerator Program to enhance the financial stability of low-income families, with special emphasis on Black families and families of color,” said Dewaelsche.
Detroit is expected to serve over half of the 2,000 expected participants, with an investment of three FOCs compared to one each in Atlanta, Cleveland, and Milwaukee.
Joe, a financial coach at the International Institute of Metropolitan Detroit, told Michigan Chronicle his team is ready to introduce the program to the over 200 clients they already serve.
“There can be a range of different needs we focus on with clients,” said Joe. “Real commonly, we’re working on budgeting skills, we’re talking about savings goals, everything is going to be goal driven. We prioritize what’s important for a client for daily, weekly, evenly monthly habits that are going to lead to financial success. “
Joe said IIMD works with both recent immigrants and life-long Detroiters, each community needing a more tailored approach to their needs.
“For immigrant populations, that usually starts with acculturation and there is education, such as how U.S. banking systems work. For native Detroiters, most are renters and want to save for a home. For those that own homes, it looks like working on paying property taxes or home repairs. Often times, people have been living in poverty for generations and the trauma and the bad habits that come with it.
We are trying to build hope, trying to take away the guilt, and their fear that impacts their decision making so their confidence is built in their abilities going forward.”
For details about how to get involved and about Rocket Wealth Accelerator’s community impact, check out www.lisc.org for updates in the next couple of months.
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