What is Required?

IDA participants must commit to the following:

• Make monthly savings deposits of at least $15 and no more than $62.50 (Click Here for a budgeting worksheet)
• Save in the program for a minimum of 12 and a maximum of 36 months
• Attend a personal finance and money management workshop series
• Complete asset-specific training for selected asset goal prior to purchase
• Regular contact with case manager
• Agree to address any credit issues that would inhibit their success in purchasing the desired asset
• Agree to abide by the program’s rules and responsibilities as described by the program staff and in the written materials received

Household Income Includes:

• All Employment (Wages and Self)
• Workers Compensation
• Unemployment
• Spousal/Dependent Income
• Investment Income
• Retirement/Pension Income
• Rental Income

Household income does not include:

• Child Support
• Social Security Benefits
• Other Benefits (TANF, Food Stamps, etc.)
• Section 8 Assistance
• If an employee pays for disability insurance

Net Worth

The IDA Net Worth Test takes the household’s total assets (what everyone in the household owns) and then subtracts the household’s total liabilities (what everyone in the household owes) to see if it has a value of more than $10,000.

The following are not included in the IDA Net Worth Test:

• The applicant’s primary residence (asset), and associating liabilities (mortgage balance).
• One vehicle (asset), and associated liabilities (outstanding loan). The asset portion of the vehicle is calculated from the Trade-In Value.

Earned Income

IDA savings dollars must be derived from household earned income, which includes employment earnings and self-employment earnings (earned income is defined by the U.S. Internal Revenue Code of 1986).

Earned income (money received for services rendered) includes:

• Wages
• Income from self-employment
• Work Study
• AmeriCorps stipend
• Foster care income from the State
• Disability Insurance Income (if the employer pays for the insurance – if the employee pays for insurance, it does not count as earned income)

Applicants cannot open an IDA savings account until they verify there is earned income in the household from a job or a business. An individual who receives only Social Security income (or any other benefit income) cannot be an IDA saver because benefit income is not considered earned income. However, if someone else in the household has earned income, the Social Security benefit earner can save using that other person’s earned income.

Acceptable Income Verification Documentation:

• Copies of paychecks or pay stubs
• Written statements from employers
• Letters or other documents from income sources, if dated within the last 30 days
• If self-employed, accounting and other business records showing net income• Most recent tax return
• Capital gains
• Any assets drawn as withdrawals from a bank, the sale of property, a house or a car
• Tax refunds, gifts, loans, lump sum inheritances, one-time insurance payments, or compensation for injury
• Non-cash benefits such as employer paid or union paid portion of health insurance or other employee fringe benefits, food or housing received in lieu of wages, the value of food and fuel produced and consumed on farms, the imputed value of rent from owner-occupied non-farm or farm housing, and federal non-cash benefit programs such as Medicare, Medicaid, food stamps, school lunches, housing and other emergency assistance.
• Any portion of Social Security benefits deducted to pay Medicare premiums that will not be reimbursed