Frequently Asked Questions
Am I automatically accepted in the program if I meet all of the necessary requirements?
Unfortunately not. Applicants are admitted into the program based on available funding resources.
Is there more to an IDA Program than just savings matches?
Absolutely! Most people need more than just cash to become successful homeowners,
entrepreneurs or college or vocational school students. For this reason participants
are required to attend 8-10 hours of personal finance and money management training
and a special asset-specific preparation program. These workshops are designed to
help participants acquire or polish the personal and financial skills that are essential
for long-term success, skills like long-range planning, household budgeting, credit
management and savvy consumer habits.
How do we know IDAs will be used as intended?
Provisions are built in to ensure compliance. Account holders are informed of the eligible uses for IDAs,
face penalties for misuse, and are motivated to comply because IDAs provide a route to their dreams.
The Community-Based Organization holds the matching funds in a separate account, and only writes a
check at the time the account holder is ready to purchase their asset. Checks are written only to eligible
vendors such as the seller of a home or institution furnishing a mortgage; an accredited school; a business
account established in a federally-insured financial institution; a licensed auto dealer or a rental
property owner or lease management agency. If an account holder makes an unauthorized withdrawal from their
IDA, they must withdraw from the program and forfeit the match.
How do assets in an IDA affect eligibility for federal entitlement programs?
The funds deposited by Participants in their IDAs (including interest accrued on those funds)
shall not be considered to be the income, assets, or resources of the individuals, for purposes
of determining eligibility for, or the amount of assistance furnished under, any Federal or
Federally-assisted program based on need. The matching funds are also not considered income,
assets or resources for these purposes.
Can account holders use their IDAs to save for their child's post-secondary education?
While there are usually no prohibitions against saving for a child's post-secondary education,
in Utah there are other opportunities for families to save for this purpose. For example, a program
known as the Utah Educational Savings Plan (UESP) is administered through the Utah State Board of Regents.
Therefore, account holders in IDA Programs in Utah can be encouraged to use IDAs for themselves in ways
that will benefit their children (first homeownership, business capitalization, their own post-secondary education),
and to explore other options for funding their children's education. Information on UESP is available at www.uesp.org or by calling 1-800-418-2551.
Where are savings deposited?
Certain designated financial institutions have agreed to establish special IDA savings
accounts, jointly owned by UIDAN and you.
Will I receive monthly statements?
Yes. Your case manager will distribute monthly statements that show your deposits
and interest match money earned.
What about making savings withdrawals?
Because IDAs are intended to help people purchase assets, withdrawals for non-asset
uses are strongly discouraged. Participants are always free to close their accounts
and withdraw from the program.
How do I receive match funds?
Matched funds will be made available when they are ready to purchase an asset. At
that time a vendor check will be issued directly to the company, institution or
individual furnishing all or a part of a participant’s asset goal (a mortgage company,
home inspector, wholesale supplier, or community college, for example).
Who funds UIDAN?
UIDAN is funded through federal, state as well as private funding. The largest federal funder of IDAs is the Assets for Independence (AFI) Act which is administered through the Office of Community Services in Health and Human Services.
Who can I call to receive financial counseling assistance?
AAA Fair Credit Foundation has Certified Credit Counselors on staff to provide financial counseling. Please call 800-351-4195 for immediate assistance or visit www.faircredit.org.