Asset Building Program/Individual Development Account (IDA)
The Total Community Action, Inc. (TCA), Individual Development Account (IDA) Program is part of our overall Poverty Reduction Strategy in New Orleans. The IDA Program is designed to help low-to-moderate income residents learn financial management skills, acquire a habit of regular saving, personal financial management, and, ultimately, purchase a productive asset - a home, small business, or post-secondary education. TCA recognizes that working poor families need more than just a steady income in order to achieve lasting economic independence-- they need equity in a brighter future, a roadmap to lasting social and economic stability. The IDA program offers these residents a way to leverage a modest income into more lasting prosperity.
Participants in the program will learn how to make wise spending choices, how to budget and save money for the future, and ultimately, how to acquire, build equity in, and maintain their chosen asset. An intense personal finance workshop series will equip participants with solid financial skills and consumer awareness, specific asset training will help ensure participants can retain their asset once purchased, while savings matches will help participants leverage their personal savings so that they may achieve their ultimate dream of owning a home or business.
What is an IDA?
Individual Development Accounts (IDA) are dedicated savings accounts that are designed to encourage and enable low-to-moderate income residents in building assets. IDAs help individuals and families
save by providing matching dollars for every earned dollar the individuals save. Over a two-year period, an individual or family can save up to $1000 in their account that will be matched 2 to 1,
earning up to $2000 in matching dollars -totaling $6,000 -- which does not have to be repaid. The account is a "dedicated" account, in that in order to qualify for the match dollars, an individual
must agree to spend the money on a qualified expense.
How does IDA Work?
The TCA-IDA Program is operated by Total Community Action. IDA savings accounts are set up at the Total Community Action Federal Credit Union. Individuals and families will have up to two years to
save money in the account under the IDA program. Once the individual or family has reached their savings goal and completed one-on-one credit counseling, and training sessions on financial literacy,
the money may be spent on a qualified expense. Qualified expenses are determined by you, the agency and the funding source, (add comma) and could include a down payment on a home or home renovation,
start-up costs for a small business, post-secondary or vocational education, a computer to support educational goals.
Program Requirements
- Work at least part-time.
- Meet program income eligibility limit.*
- Make regular deposits into the savings account.
- Develop a savings plan describing how the savings will be spent.
- Work with a credit counselor.
- Participate in financial literacy training.
- Spend the money saved on a "qualified" expense.
- Consult with agency staff prior to making any withdrawals.
- No minimum or maximum dollar amount required.
*In order to be eligible for the IDA Program, you must meet certain program and income requirements, including earning wages from job and/or self-employment business and your total household gross income meets 200% of the federal poverty level or the Earned Income Tax Credit (EITC) guidelines. In addition, you need to have less than $10,000 in net asset (excluding an automobile).
For More Information -
For more information contact (504) 872-0329 to register for the next IDA orientation session.
Begin the process by completing the three applications below:
- Application to Participate Form (to be dated and signed by Applicant and Co-Applicant (if applicable))
- Verification of Employment Form
- Financial Management Skills Inventory Form
- Summary of IDA Program
- All Applicants and Co-Applicants must provide a driver's license or other identification with photograph
- Copy of Social Security Card
- Copy of Voter's Registration Card (see below for information to obtain the card)
- Last 2 bank statements
- Last 2 paycheck stubs
- Last 2 years income tax return
- Last 2 W2's
Please return all of the above documentation to the TCA-IDA Program for file purposes.
IMPORTANT:
Once you have all items above completed and available, please call to schedule an appointment. The IDA Program applications are processed on a first-come, first-serve basis, while funds are
available. Please understand that there is a waiting list.
ORLEANS PARISH REGISTRAR OF VOTERS
City Hall
1300 Perdido Street Room 1W24
New Orleans, LA (bring your ID)
Monday - Friday, 8:30 a.m. - 4:30 p.m.
JEFFERSON PARISH REGISTRAR OF VOTERS
Charles B Odom Service Center (the last building)
5001 Westbank Expressway
Marrero, LA (bring your ID)
Monday - Friday, 8:30 a.m. - 4:30 p.m.