Individual Development Accounts
(Assets for Independence Demonstration Program)
The Assets
for Independence Demonstration Program was established by the Assets for
Independence Act (AFI Act), under title IV of the Community Opportunities,
Accountability and Training and Educational Services Human Services
Reauthorization Act of 1998, P.L. 105-285.
The Assets
for Independence Demonstration Program is a directed, matched savings program
for lower income working individuals and families. Participants enter into a
Savings Plan Agreement with the project grantee, which establishes a schedule
and goal of savings from earned income, to be matched at an agreed rate which
can be from one dollar to eight dollars for each dollar saved. Matching
contributions are made by the grantee at least quarterly from equal parts of
Federal grant funds and non-Federal share contributions to the project. Matched
savings may be expended for either (1) the purchase of a principal residence by
a first-time homebuyer, (2) the capitalization of a business, or (3) expenses
of post-secondary education.
The major
goals of the program are to provide for the establishment of demonstration
projects designed to determine: (1) the social, civic, psychological, and
economic effects of providing to individuals and families with limited means an
incentive to accumulate assets by saving a portion of their earned income; (2)
the extent to which an asset-based policy that promotes saving for
post-secondary education, homeownership and small business capitalization may
be used to enable individuals and families with limited means to increase their
economic self-sufficiency; and (3) the extent to which an asset-based policy
stabilizes and improves families and the community in which the families live.
The Assets for Independence Demonstration Program offers five-year Federal grants to the following eligible applicants: (1) a not-for-profit 501(c)(3) tax-exempt organization; (2) a State, local or Tribal government agency applying jointly with a 501(c)(3) tax exempt organization; (3) a Community Development Financial Institution (CDFI) or a Low Income Credit Union (so designated by the NCUA), provided that the CDFI or Credit Union has a collaborative relationship with a local community-based organization whose activities are designed to address poverty in the community.
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Funding Category: |
Matched savings program for lower-income working individuals and families. |
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Target Population: |
Low-income individuals eligible for TANF |
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Funding Available: |
In FY 2002, OCS expects approximately $20 million to be available for funding commitments to approximately 50 new projects, including grants to existing grantees, expected to average approximately $400,000 each and not to exceed $1,000,000 for the five-year project and budget periods. |
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Application Information: |
IDA NOFA, Office of Community Services, (202) 401-4787; for Assets for Independence Program Kits, (202) 401-1195 |
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Contact: |
IDA Contact Information: Sheldon Shalit, Division of Community Demonstration Programs – IDA Office of Community Services, ACF, DHHS, 370 L’Enfant Promenade, SW, Washington, D.C. 20447; tel. (2102) 401-4807; fax (202) 401-5538; email: sshalit@acf.ddhs.gov |
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Links To More Info: |
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Administering Agency: |
Office of Community Services, Administration for Children and Families, Department of Health and Human Services |