Pace Receives Individual Development Accounts

Pace Community Action Agency is excited to announce that we have been granted Individual Development Accounts (IDAs) from the Indiana Housing & Community Development Authority. We now have responsibilities for 10 existing accounts and 5 new accounts in Knox County.

An IDA is a special savings account for people with low incomes and minimal assets. Savings can only be used for specific asset-building purchases or investment; for example, to buy a home, rehabilitate a home, pay for education, and/or to start a small business. Customers must save at least $400 of earned income per year. If criteria are met and individuals are accepted into the program, the State will match funds $3 to every saved $1 for four years. Minimum individual savings will be $1600 in four years and the State match adds $4800 into the account for a total of at least $6400 to be used for qualified asset purchases.

Bertha Proctor, CEO, states “This program is designed to assist individuals in achieving self-sufficiency through financial literacy and asset generation which fits our mission to encourage self-reliance.”

Criteria for this income-based program are as follows:

1. The entire household size and combined earned income must be under 175% of the OMB poverty guidelines.
2. Individuals must have saved $400 by April 30, 2011.
3. A full credit report must be provided or a fee of $20 for single or $30 for a joint report must be paid prior to application submission to the State.
4. 8-12 hours of financial literacy classes must be completed by April 30, 2011.
5. Automatic withdrawal to put savings into the IDA must be set up.
6. This is not a personal savings account as it can only be used for qualifying asset purchases. Two signatures are required to withdrawal funds – the individual and Pace's representative.

We are currently accepting applications, and applicants will be placed on a waiting list. The first customers to accomplish the above criteria and are accepted into the program will be at the top of the waiting list. Around the end of April each year, the State will contact us regarding additional funds that may be allocated to this program. If we have customers who have met all requirements, we can request additional accounts.

Tracy Buck, Project Coordinator, says “It is important for interested individuals to take financial literacy classes now, and have the $400 of savings. We expect to enroll candidates as soon as they are eligible.” Questions about this program and/or information to start the financial literacy classes should be addressed to Tracy Buck at 882.7927 ext. 1211.

Pace Community Action Agency is a private not-for-profit corporation with a mission to provide support services that improve the community and encourage self-reliance. Find us on Facebook and on the web at www.pacecaa.org.