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CTE's IDA Program
Our Individual Development Account (IDA) program started in February 1998. To date, 146 families have enrolled in our program and opened IDA's. CTE was the first agency in Connecticut to operate an IDA program, and has been in the forefront of helping this innovative new anti-poverty program gain momentum in the state. Today, CTE is recognized nationally as a leader in the IDA field.
What are IDA's?
IDA's are matched savings accounts in which participants save for one of the following assets: A first home, small business capitalization or higher education. IDA's are the centerpiece of a new asset-building strategy that creates hope and jobs and enterprises; builds families, communities and economies; and develops assets and enduring escapes from poverty. IDA's bring to low-income families the benefits of savings, investments, and assets to which higher income segments of our society have access.
CTE currently operates the Greenwich IDA program, the Stamford IDA Program, and two Federal Demonstration Programs funded by the U.S. Department of Health and Human Services under the Assets for Independence (AFI) IDA initiative. These demonstration programs designate CTE as the lead agency in a collaborative effort with three other local state agencies, and allow CTE to provide leadership and expertise to NEON in Norwalk, ABCD in Bridgeport, and ACCESS in Willimantic.
Since the inception of the program at CTE, we have been able to tell the story of many individuals and families who have realized their dreams. These success stories are important milestones that help us to gauge the effectiveness of our program. One recent story is that of a single mom, Betsy, raising a daughter alone, who through her perseverance and commitment to the program was able to purchase a condominium in Stamford for $243,000. In two years of participation in the IDA Program, she saved over $7,000. Of this sum, $4,000 was matched through the IDA Program. In addition, Betsy received an incentive match from Citibank for staying the course for two-years and meeting her goal.
Because she was a Section 8 recipient, Betsy qualified for Home Bound funds through Stamford Housing Authority, and also for City of Stamford Home Funds. These programs helped her with the down payment and with closing costs. Walking into her new home Betsy had the following: $5,037.22 in personal savings, $6,064.79 IDA and Citibank incentive match ($2,000); $20,000 from the City of Stamford and $20,000 from Stamford Housing Homebound Funds. (The Citibank incentive match of $2,000 has a fast-track 2-year savings requirement and is disbursed on a first come first served basis. CTE provides this incentive to 20 customers.)
CTE's IDA Program combines traditional support services and case management with the asset-building approach of IDA's, Financial Literacy classes, and Asset-Specific training. In addition to operating the IDA Program, CTE is also under contract with the Connecticut Department of Labor to provide training and technical assistance to new IDA Programs in Connecticut
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