IDA Program
Willamena Samuels, Director
wsamuels@mannadc.org
INDIVIDUAL DEVELOPMENT ACCOUNT (IDA) PROGRAM
An individual development account program is one in which low-income families are required to save an agreed upon amount per month toward the purchase of a home or other significant asset, e.g. tuition, a small business, which will help lead to self-sufficiency. Those savings are then matched at a pre-determined ratio after a given period of time. There are strict rules associated with the program to which participants must adhere.
Manna has one of the leading Individual Development Account (IDA) programs in Washington, DC, assisting low-income families achieve their dream of homeownership by creating an environment that fosters saving toward the downpayment on a home and assists participants in improve their credit, while learning how to be successful homeowners. This program is quite competitive, and participants must adhere to a strict set of rules. Space is currently limited to three classes of fifteen people a year, so prospective participants must be ready to commit to a long-term savings and education plan in order to be considered for this program.
After being officially enrolled in the IDA program, interested participants must complete Manna's Financial Literacy Training Program (FLTP). This six-week program focuses on responsible money management including: budgeting, bill payment, record keeping, checking accounts and financial institutions, credit cards and credit management, consumer awareness and expense prioritization, as well as saving and planning for the future.
Upon completion of the FLTP seminar, Capital Area Asset Building (CAAB) will open a savings account, those who meet the requirements are invited to join one of Manna's Homebuyers Club chapters developed solely for IDA members. Once the participants are enrolled in this nationally recognized and replicated Homebuyers Club, they must save $33.33 per month. Upon completion of this two-year program, the client will have saved $800. Coupled with a 3 to 1 match, this would become $3,800 ($800 from savings plus $3,000 in matching funds). These monies would then be used for the downpayment and closing costs on a Manna home.
Manna is a charter member of the Capital Area Asset Building Corporation (CAAB), a nonprofit organization which sets standards for the IDA program and its eleven member organizations and also provides administrative and educational support to them. CAAB is also charged with the responsibility for raising the matching funds provided by its members to IDA participants. While matching funds are not guaranteed by CAAB or its members such as Manna, all successful participants who have completed the program and purchased a home have received the 3-to-1 matched savings amount.
IDA Program Rules
Manna's IDA program receives matching funds from the Capital Area Asset Building Corporation (CAAB). In order to qualify for matching funds, CAAB requires that an individual interested in becoming an IDA participant must meet the following qualifications:
- Be committed to saving towards a specific asset goal - homeownership.
- Be committed to taking financial literacy and asset training courses.
- Fall within set income guidelines (note that all income amounts apply to the entire household, NOT just the individual applying to the program).
- Meet the requirements set forth by Manna and CAAB
For more information about Manna's IDA program, please contact Willamena Samuels, Director at (202) 832-1845 or email wsamuels@mannadc.org
