The Connecticut Individual Development Account Initiative
Eligibility
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Participants in the CT IDA Initiative Program must reside in a household
located in the state of Connecticut, which has an adjusted gross income not
in excess of 80% of the Area Median Income (AMI). DOL will provide you with
the updated AMI each year. The AMI can also be found by putting the
words “HUD Area Median Income” into your web browser. Be sure to specify
the current year. (Note: This will give you the AMI; you will need to
calculate 80% of AMI.)
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A “household” is defined as “…all individuals who share use of a dwelling unit
as primary quarters for living and eating separate from other individuals.”
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Also, program operators must make their best effort to ensure that at least
30% of the IDA account holders have earned income at or below 200% of
the Federal Poverty Level. DOL will provide you with the updated Federal
Poverty Guidelines each year. The Federal Poverty Guidelines can also be
found by putting the words “Federal Poverty Guidelines” into your web
browser. (Be sure to specify the current year.)
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In addition, participants in the CT IDA Program must meet one of the
following criterion:
 Have earned income (Note: Proceeds from the Earned Income Tax Credit
are considered “earned income”),OR
 Meet the definition of an individual with a qualified disability.
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To meet the definition of having a qualified disability an individual must:
 Be receiving Supplemental Security (SSI) or Social Security Disability
Income (SSDI), OR
 Be receiving Medicaid on the basis of a disability, OR
 Be participating in rehabilitation services under Chapter 319mm of the CT
General Statutes, OR
 Provide confirmation by the Bureau of Rehabilitation Services (BRS) that
the individual is eligible for assistance pursuant to Chapter 319mm of the
CT General Statutes, OR
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 Provide confirmation of his/her disability by any other agency deemed
comparable by DOL.
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There is no asset test for participation in the CT IDA Program.
Allowable Assets
Funds may be withdrawn to purchase one of the six Allowable Assets no earlier
than 6 months after the initial deposit by a Participant into their IDA, providing
the Account Holder has reached his/her savings goal.
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Purchase of a Home as a Primary Residence – In the Connecticut IDA
Initiative an IDA Participant may use their IDA and matching funds to
purchase a ”primary residence,” even if it is not a “first home.”
 Homes must be purchased within the State of Connecticut, but can be
purchased outside of the area where the IDA Program operates. The cost
of the home cannot exceed 120% of the average area home purchase
price for a comparable residence.
 It is important that you be aware of the housing market in your area. You
will want to steer Participants away from areas where housing prices are
depreciating and away from poorly constructed homes that will likely not
appreciate in value.
 Usually a Participant will need more than the savings in their IDA and their
matching funds for their down payment on a home. You should research
other sources of homeownership assistance and form partnerships with
first-time homeownership programs so that these resources can
supplement Participants’ IDAs.
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Small Business Capitalization – The Participant’s savings and matching funds
can be used for the development of a new or existing entrepreneurial
activity. Funds must be paid directly into a business capitalization account
that is established in a federally-insured financial institution and restricted for
the sole use for qualified business capitalization expenses of the eligible
individual in whose name the account is held. The business must not
contravene any law or public policy. A business plan must be developed.
This business plan:
 Must be approved by a financial institution, a micro-enterprise
development organization, or a non-profit loan fund having
demonstrated fiduciary integrity;
 Must include a description of services or goods to be sold, a marketing
plan and projected financial statements;
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 May require the Account Holder to obtain the assistance of an
experienced entrepreneurial advisor.
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Post-Secondary Education or Job Training – Such costs may include the costs
of tuition and fees which are required for the enrollment or attendance of
the Account Holder at an approved educational institution. Such costs also
may include the books, supplies and equipment required for the education
or job training. Funds must be paid directly to an eligible educational
institution.
 Education is defined as a post-secondary program of instruction provided
by a college, university, community college, area vocational-technical
school, professional institution or specialized college or school legally
authorized to grant degrees; or any related educational program
approved by the community-based organization (CBO) and DOL.
 Job Training is defined as a program of job entrance or skill development
approved by the CBO and DOL.
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Education or Job Training for a Dependent Child
 At the time of asset purchase, the participant’s IDA savings and the
matching funds will be deposited into a 529 account or Job Training
program.
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Lease deposit on an apartment, including security deposit and/or first and
last months’ rent.
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Purchase of an automobile, for the purpose of obtaining or maintaining
employment. The purchase of an automobile includes all expenses due at
the time of purchase that will assist an IDA participant in making the
automobile drivable. This would include any license fees, dealer preparation
fees, repairs done at the time of purchase, and automobile insurance paid
in advance for up to one year. All IDA savings and matching funds must be
expended at the time of the purchase of the automobile.
NOTE: Participants saving for a home, post-secondary education or job training,
or an automobile for the purpose of obtaining or maintaining employment, must
complete the corresponding Asset Purchase Plan, a copy of which must be
included in the Participant’s file before the asset purchase is completed.
Match Rate
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Programs can match up to 2:1, up to a maximum match of $3,000. For a 2:1
match, a Participant can save up to $1,500 in their IDA and receive a match
of up to $3,000 for a total of $4,500 for their asset purchase. For a 1:1 match,
a Participant can save $3,000 in their IDA and receive a match of up to
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$3,000 for a total of $6,000 for their asset purchase. Be sure to match at the
rate that you specified in your original grant proposal.
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No more than 2 concurrent IDAs are allowed per household.
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The maximum total match is $3,000 per individual and $6,000 per household.
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Participants earn interest on the funds that are in their IDA. This interest must
be matched even if this results in a match that exceeds the $3,000 maximum
limit.
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Participants able to save more than the matchable amount over the
program duration will have even higher savings to be used towards
purchasing their asset, although the maximum match limitation applies
regardless of higher personal savings. Any amount above the allowable
goal should be deposited into a separate account opened by the
Participant in their own name.
Maximum Savings Goal
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Participants are encouraged to strive toward a goal of $1,500 in savings in
order to receive the maximum allowable match (or a goal of $3,000 if the
Program is matching $1: $1). Participants should be encouraged to save as
much as is feasible, in order to build their assets faster, although the match
limitation will apply regardless of higher savings. Any amount above the
maximum allowable savings goal should be deposited into a separate
account opened by the Participant in their own name.
Topics for Asset-Specific Training/Savings Clubs
Homeownership Training
 Preparation for first home purchase
 Looking for a Home/Home buying process
 Credit issues
 Mortgage Application Process
 Mortgage pre-qualification requirements
 Mortgage product types
 First Home Ownership Programs in the Community
 Legal issues/The Closing
 Presentations by local realtors
 Life as a Homeowner
 Home Maintenance and Repair
 Foreclosure Prevention
Higher Education
 Financial Aid
 Choosing a College
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(Agencies should use existing relationships with local institutions of higher
learning and post-secondary vocational educational schools, as well as
forge new relationships with such institutions.)
Saving for a Child’s Education
 What is a 529 Plan?
 Choosing a Plan
 Tax Considerations
 Investment Options
 Making a Withdrawal to Pay for Your Child’s Education
Small Business/Entrepreneurial Training
 Entrepreneurial Training
 Individual Mentoring
 Developing a Business Plan
 Each agency will arrange for small business/entrepreneurial training to
be provided by qualified individuals or entities. Group classes may be
made available for general entrepreneurial training, and shall be
followed by individualized training with small business training
professionals.
Vehicle Purchase (for Employment)
 What kind of car best fits my needs?
 Shopping Around/Researching Deals
 Is “Going Green” Right for You?
 Reading a Car Window Sticker
 Negotiating Your Deal
 Shopping for a Loan
 Car Financing
 Service Contracts/Warranties
 Lemon Law
Lease Deposit on an Apartment
 Apartment Hunting
 Choosing the Right Apartment
 Inspections
 The Lease
 Your rights and responsibilities as a renter
 The landlord’s responsibilities
 Security deposit
 Renter’s insurance
 When repairs are needed
 Eviction prevention
Other Topics
 Tax issues
 Increasing Your Earning Potential
 Job Marketability
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Job Retention and Advancement
Dealing with a Difficult Boss
Handling Disputes with Co-Workers
Asking for a Raise or a Promotion
Advocating for Yourself
Decision Making
Critical Thinking Skills
Parenting
Motivational Issues
Stress Reduction and Anger Management
Other groups that can be solicited to assist with Financial Education and/or
Savings Club presentations are:
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Housing Finance Authority (CHFA)
Non-Profit Housing Agencies/Housing Authorities
Lenders/Realtors
SBA-funded organizations/SCORE
Women’s Business Development Agencies
Community Colleges (Business Development or Entrepreneurial Centers)
Local Chambers of Commerce
Colleges/Financial Aid Representatives
Trade Schools/Apprenticeships
Job Training Entities/Workforce Development/Career Counselors
Industry Associations
Banks
Cooperative Extension Services
You can find experts on many of these topics that might be willing to come talk
to your classes. Also, information on many of these topics can be found on the
Internet.
Serving Individuals Out of Your Service Area
You can admit an individual who lives out of your service area into your
program, as long as there is not a DOL IDA program with available slots
operating closer to where the individual lives. On rare occasions, an individual
might live in one town and work in another, and it would be more convenient for
them to join an IDA program where they work. This can be permitted, after
consultation with DOL and with the program operator in the town where the
participant lives.
Making Changes to Your IDA Program Plan
If you wish to make any changes to the program plan that you specified in your
original program proposal, you must first get permission from DOL.
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