INDIVIDUAL DEVELOPMENT ACCOUNT [IDA]

United Way’s IDA Project is a matched savings project designed to help low-income families save for and acquire a productive asset - a home, the start-up or expansion of an existing child care business, or a vehicle.

Participants make regular deposits to a special savings account, an “Individual Development Account” or IDA. The IDA is a custodial account held jointly by the participant and United Way at a partnering financial institution. The savings match funds will be issued to the closing agency or vendors when the IDA participant reaches his or her savings goal and is ready to purchase their asset.

Project participants will receive a 4:1 match on their savings:

• Those saving up to $2,000 will be matched up to $8,000 for a maximum total of $10,000 for a home or child care purchase or expansion, and
• For vehicle purchase, those saving up to $1,000 will be matched up to $4,000 for a maximum total of $5,000.

United Way anticipates working with 619 families resulting in 562 asset purchases with 365 first-time home buyers, 60 small child care facilities, and 137 vehicle purchases.

Participant Eligibility

An IDA Project participant may be either an individual or a household. To be eligible, the invidual or household must have earned income and meet one of the following criteria:

1. The individual or household is eligible for the Temporary Assistance for Needy Families (TANF) program at
   the time of application.
2. They meet both of the following:
   
   • Their annual gross household income is less than twice (200% ) the Federal Poverty Line at the time of application or within Federal Earned Income Tax Credit limits, and
   • Their household net worth was less than $10,000 at the end of the calendar year that proceeded the time of their application (not including the value of their primary dwelling unit and one motor vehicle.)

Participant Requirements

The participant must also:

• Have a commitment to staying in the IDA Project until the individual or family reaches their savings goal.
• Deposit at least $25 each month into their account while participating in the project.
• Be enrolled in the IDA Project for at least six months before they can withdraw funds from their IDA.
• Attend financial literacy and asset specific trainings.

Program Components

• Credit Counseling
  
• Case Management Services
  
• Financial Literacy Training
  
• Asset Specific Training -
  
  • homeownership, childcare business
    
  • and/or vehicle purchase
    
  • One (1) year follow-up

IDA PARTNERS
Capital One, N.A.
Catholic Charities Archdiocese of New Orleans
Consumer Credit Counseling Services
of Greater New Orleans
Family Resources of New Orleans
Family Service of Greater New Orleans
Fidelity Homestead Savings Bank
Ginger Ford Habitat for Humanity
Good Work Network
Hope Community Credit Union
Habitat for Humanity St. Tammany West
Jefferson Parish Community Action Program
Jericho Road Housing Initiative
Neighborhood Development Foundation
Neighborhood Housing Services
Total Community Action (TCA)
United Bank and Trust
University of New Orleans Small Business Development
Urban League of Greater New Orleans
Whitney National Bank