Individual Development Accounts

A Family Resource Network Program
Division of Community Resources

Participants who have successfully completed the Financial Literacy Academy, who are income eligible and have met other program eligibility criteria are invited to join the Individual Development Account (IDA) Program. Administered by the Greater Lowell IDA Collaborative (GLIDAC), it is the second step in the Asset Development Program.

What is an IDA?
Think of an IDA as a matched savings account where the money you save can be used for three specific goals: - to buy a home, to start a business, or to pay for post-secondary education. You have several years to save the money you need to achieve your goal.

Your Savings Are Matched!
An IDA is a special matched savings account. For every dollar you save, the program matches it on a 3:1 ratio. In other words, if you save $1, the program will match it with $3. Participants may save up to $2,000 which will be matched with $6,000 in program funds totaling $8,000 that may be used as a down-payment or for closing costs on a home, tuition for college, or toward the purchase of a small business.

Where Does the Money Come From?
Although the Greater Lowell IDA Collaborative administers the program, the funding comes from state, federal and private resources.

Does That Make A Difference?
Actually, it does. The federal and state programs have slightly different income eligibility criteria and the maximum amount of savings is different for each one. The State IDA Program is for home ownership only while the Federal IDA Program may be used for homeownership, education, or business starts.

How Do I Know if I'm Eligible?

• You must be employed
• State income eligibility is 80% of area median income.
• You must be a member of a household that may be eligible for assistance under the State Temporary Assistance to Needy Families (TANF) Program
• Your household's adjusted gross income must fall within 200% of the Federal Poverty Guidelines: The 2008 guidelines are as follows:
  
  A family of 1 cannot exceed a gross annual income of $20,420
  A family of 2 cannot exceed a gross annual income of $27,380
  A family of 3 cannot exceed a gross annual income of $34,340
  A family of 4 cannot exceed a gross annual income of $41,300

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