United Way of America Chairman and Former U.S. Secretary of Transportation Rodney Slater announced a $1 million award from UWA’s Hurricane Disaster Relief Fund for Individual Development Accounts (IDAs) to support home ownership in New Orleans.

IDAs are restricted savings accounts that provide incentives to help low-income people save and build assets. Individuals who open an IDA receive matching funds, normally ranging from $1 to $3 for each dollar they deposit into their account. In addition, IDA programs normally include support services such as budget counseling and homeownership and entrepreneurial training to help participants achieve their goals. When the individual has accomplished the savings goal they had initially set, they may withdraw all of the account to spend on that goal, including the matching funds granted.

“The $1 million going to IDAs works hand in hand with the people in the community to help them purchase homes, enhance their transportation, and especially develop child care centers in the city,” announced Slater, “It represents ongoing commitment to New Orleans recovery. There has to be an ongoing relationship between the city, United Way, and the private sector as well.”

“We’ve heard a lot of talk, but this is really the first real initiative to rebuilding New Orleans,” said Oliver Thomas, New Orleans City Council President, “We have to make sure that Post-Katrina New Orleans represents a higher percentage of home ownership than Pre-Katrina for a healthier independent community.

This initiative is more than just giving someone a down payment to purchase a home, [it includes] budget counseling, personal management, and account management,” said Thomas, “We have the chance to build a better citizen through programs and training in self-sufficiency.”

“IDAs will be used in an application with HUD (U.S. Department of Housing & Urban Development) which will be used in hopes of putting a second million dollars in the bank from HUD,” stated Gary Ostroske, United Way for the GNO Area President, “I think this is the first step in the recovery and rebuilding process.”

“The more we can create partnerships between our non-profits, our city governments, and our private business community, the better this community will be for it,” added Arnie Fielkow, New Orleans City Councilmember at Large.

Slater concluded “This is a real partnership that only grows stronger with time. United Way of America has already invested $4 million in the New Orleans area and there’s more to come.”