Individual Development Accounts (IDAs)
IDA Application Form
Individual Development Accounts (IDAs) provide participants with an opportunity to invest in their future. Saving for the future when resources are limited can seem like a daunting and sometimes impossible task. This task is made even harder by the “spend now, pay later” mentality that is prevalent in our society.
Looking beyond what today’s paycheck can buy today is difficult. Many people assume that “saving for the future” is reserved for those who have money. Without question saving for the future requires careful planning from those with limited financial resources, however it is possible.
The IDA program is a matched savings program that allows participants to invest in education, home–ownership, or small business. For every $1 you save, CND will match your savings with up to $3. The match varies according to the investment type.
| Eligible Uses |
Match Rates |
You Save |
CND Will Contribute |
Total Toward Asset Purchase |
| Homeownership |
3:1 |
$2,000 |
$6,000 |
$8,000 |
| Education |
2:1 |
$1,500 |
$3,000 |
$4,500 |
| Small Business |
2:1 |
$1,500 |
$3,000 |
$4,500 |
In addition to the matched savings component, all participants will be provided with additional supports that will allow them to accomplish their savings goals — from homeownership counseling to small business technical assistance. Workshops will be held throughout the duration of the program and are required for IDA participants. In addition to learning how to manage assets, these workshops will review other sources of funds that participants can use to further aid in financing their investment. Participants meet with program staff on a regular basis and will have direct access to program partners.
Benefits to IDA Participants
Homeownership: Own your home
- Receive homeownership counseling
- Become eligible for downpayment assistance
- Increased access to affordable ownership opportunities in Chelsea
- The monies can go toward the down payment or to cover closing costs.
- The home must be your primary residence.
Education: Cover expenses related to post-secondary education
- Pay for tuition, fees, books, and/or supplies — for yourself or your children
- Training in how to finance your education — financial aid, scholarships, grants
- Individuals who are currently enrolled, or are planning on enrolling in a qualifying institution are eligible to apply. Additionally, parents who have a child who will be enrolling in a qualifying institution by September, 2010 can open an account on their behalf.
Small Business: Develop an existing business that has been operating for at least one year.
- Receive trainings in how to grow and manage your business
- Increased access to small business technical assistance, trainings, and workshops
- Direct contact with small business lenders
Requirements of Program Participants
- Save at least $25.00/month (maximum $200/month)
- Participants must first complete the Financial Empowerment Training Program.
- Meet once a month with other “savers” to discuss any community economic issues
- Receive one-on-one counseling and training specific to your goals
- Two-year program — Finish saving early.... Start buying early
- Funds must be used by 2010
Program Eligibility
- Must have earned income — if you work at least part-time you qualify
- Automatically qualify if receiving TAFDC cash benefits from the State of Massachusetts
- Automatically qualify if eligible to apply for Earned Income Tax Credits
- Must meet income eligibility
- Asset eligibility: Net worth (assets minus liabilities), less than $10,000 (excluding one motor vehicle).
- Priority is given to Chelsea residents, however, individuals from surrounding communities (Everett, Revere, Lynn, and East Boston) are encouraged to apply.
