Individual Development Account (IDA) program in NE Iowa

Problem:
The Individual Development Account (IDA) program in Iowa has helped hundreds of low income families accumulate wealth by matching dollar for dollar savings for education, home ownership or small business start-up. This past fiscal year, a large amount of forfeited federal funds were made available in the state of Iowa, but had to be utilized within six months.

Response:
A coalition of 10 organizations and agencies in Northeast Iowa, including Iowa State University Extension, UNI, Opportunity Works, Operation Threshold, MICA, Northeast Iowa Food Bank, JDCCU, United Way, US Bank, and Senator Charles Grassley's office, developed an IDA program to use at least part of these forfeited funds. Fourteen individuals were recruited to start IDA accounts, and an intense financial education course was delivered by ISUE in two Saturday sessions for a total of 12 hours of financial education. By the August 3, 2004 deadline, all 14 individuals had successfully completed the requirements for their match.

Results:
$40,000 of savings by these 14 individuals, matched with $40,000 of federal funds provided a total of $80,000 that was used to pay for tuition and fees at Iowa colleges, as down payments for home purchases in Northeast Iowa, and as start up funds for one small business in the Waterloo area.

Contact:
Patricia K. Gorman, Field Specialist/Resource Management
Grundy County Extension
703 F Street Suite 1
Grundy Center, IA 50638
Phone 319-824-6979
Fax 319-824-6601
Email pgorman@iastate.edu