The Veenstra Team is continually updating our resources to make sure you have the information you need to make successful housing decisions. Here is a program that helps qualified individuals meet their home purchase savings goals. It is a program sponsored by MSHDA.
What is an Individual Development Account (IDA)?
A growing number of welfare experts recognize the need to support families in their exit from poverty by encouraging the accumulation of wealth and assets, as opposed to maintaining a set level of income. IDAs are matched savings accounts designed to help low-income and low-wealth families accumulate a few thousand dollars for high return investments in education or job training, homeownership, or micro enterprise (small-business start-up). IDAs are designed to increase savings and investments for the working poor, welfare recipients, and citizens teetering on the edge of life-long poverty. Just as the GI bill provided hundreds of thousands of families the opportunity to acquire a home and enter the middle-class, the IDA is a tool that can help low-income citizens strive toward their dream of leaving poverty for good.
How do IDAs work?
An IDA account is a savings account established at a local financial institution under a qualified individual’s name. That individual must meet IDA program acceptance criteria (under 200 percent poverty, earned income, etc.), complete a financial management course and training related to their asset goal, and save money toward their future dream over a period of between six to thirty-six months. Once they have completed the program, their savings of up to $1,000 is matched by the Michigan IDA Partnership (MIDAP) at a ratio of 3:1 for a home purchase and 2:1 for post-secondary education/job training or to start or expand a small business. IDAs help low-income families plan a path out of poverty and help create economic stability in their lives to remain self-sufficient.
Is this a give-away program?
No. An IDA creates a system where the participant is the primary investor and producer in attaining their goals. Community resources, both private and public, match their savings only after the individual has met their savings goal, and completed training and learning commitments.
Contact Michigan IDA Partnership
For more general information on Individual Development Accounts (IDAs) visit the Corporation for Enterprise Development web site at http://www.cfed.org/
For information on IDAs in Michigan please visit the Michigan IDA Partnership web site at http://www.cmif.org and click on Michigan IDA Partnership or contact:
Michigan IDA Partnership
Susan Lindson, State Coordinator
345 E. Nine Mile Road
Ferndale MI 48220
Phone and Fax 248 629-4427