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CTE Wealth & Asset Development /
IDA Programs
The Center is responsible for the development, implementation as well as management of all financial programs and financial training offered at CTE. This Center provides core asset-building services, Individual Development Accounts (IDAs) and financial education to low-income families in a fully supportive and culturally competent environment. As with all CTE programs, the Center's approach is holistic in nature and includes financial products, services and practices designed to address the needs of the entire low-income family to help overcome barriers to self-sufficiency and building wealth. The Center is managing all volunteer tax assistance programs. (VITA - Volunteer Tax Assistance) |
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The Center's core services address barriers to financial self-sufficiency for low-income families, such as negative credit, equity and asset gaps and access to mainstream financial institutions.
Our Individual Development Account (IDA) program started in February 1998. To date, over 150 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.
From 9/31/1999 through 9/31/2008, CTE IDA Programs produced the following:
- 68 homes with a cumulative value of $14,365,389
- 37 Post-secondary education opportunities cumulative value of $174,353
- 32 Businesses with a cumulative value of $234,764
- Total assets Return on Investment (ROI) is $14,774,506
- Total customer savings was $522,895
What are Individual Development Accounts or IDAs?
IDAs are matched savings accounts in which participants save for one of the following assets: your first home, small business capitalization or higher education, security deposits and an auto for work. IDAs are the centerpiece of a new wealth-building strategy that creates hope, jobs, and enterprises, builds families, communities and economies. Teaching families money management skills develops assets and enduring escapes from poverty. IDAs bring to low-income families the benefits of savings, investments, and assets to which higher income segments enjoy from our society.
Core Financial Education Classes consist of:
Money Management-Savings and Investing; Credit Analysis; Debt Management; Identity Theft; Basics of Banking and Long-Term Savings. Current partners assisting in the facilitation of these classes include Wells Fargo, Citibank, GE Money and TD Banknorth. CTE is seeking funds to offer Financial Education for elementary school age youth, 5 years to 13 years old.
CTE partners with Housing Development Fund/Adopt-A-House, Mutual Housing of Southwestern and Citibank to provide Homebuyer Education. SCORE and the Women's Business Development Center have provided assistance to customers interested in Small Business and Micro-Enterprises. Career counseling for Post-Secondary Education opportunities has been provided through CONNTAC and local educational institutions. The Center is planning to bring some of these services in-house in the near future.
Individual Development Account Eligibility Guidelines
To participate:
1. Be employed full time or part-time
or
2. TANF/TFA customers, working part-time
and/or any of the following,
3. Eligible for or received Earned Income Tax Credit for 2008
Qualifying Children |
Maximum Income Threshold
Single Head of Household |
Maximum Income Threshold
Married, Filing Jointly |
Maximum
Tax Credit |
0 |
$13,440 |
$18,440 |
$457 |
1 |
$35,463 |
$40,463 |
$3,043 |
2 |
$40,295 |
$45,295 |
$5,028 |
3 or more |
$43,279 |
$48,279 |
$5,657 |
Or:
4. Earning at or below 200% of the 2009 Federal Poverty Level Guidelines
Household Size |
200% of Poverty |
1 |
$21,660 |
2 |
$29,140 |
3 |
$36,620 |
4 |
$44,100 |
5 |
$51,580 |
6 |
$59,060 |
7 |
$66,540 |
8 |
$74,020 |
(For each additional person add $7,480) |
Or
5. Earning at or below 80% of the 2008 HUD Area Median Income Guidelines
Household Size |
80% of HUD AMI |
1 |
$ 68,488 |
2 |
$ 78,272 |
3 |
$ 88,056 |
4 |
$ 97,840 |
5 |
$ 105,667 |
6 |
$ 113,494 |
7 |
$ 121,322 |
8 |
$ 129,149 |
9 |
$ 136,976 |
10 |
$ 144,803 |
6. Persons with a qualified disability can participate in an IDA Program.
Disability Definition:
- Individual is receiving Supplemental Security Income (SSI) or Social Security Disability (SSD); or
- Individual is receiving Medicaid on the basis of a disability; or
- Individual is participating in rehabilitation services under Chapter 319mm of the Connecticut General Statutes; or
- Individual provides confirmation by the BRS (Bureau of Rehabilitation Services) that such individual is eligible for assistance pursuant to chapter 319MM of the CT General Statutes; or
- Individual provides confirmation of the individual's disability by any other agency deemed comparable by the Department of Labor.
And the following stipulations:
7. Personal assets cannot exceed $10,000. You can own a primary dwelling and one auto. You will not be eligible for the 1st time homebuyer program.
(This guideline pertains to Federal programs only)
8. Permissible use of match/savings:
- Post-Secondary Education opportunities that include tuition, fees, books
- First time home ownership
- Business start-up and capitalization
- Security Deposit (State Program only)
- Purchase of vehicle for work (State Program only)
- Children Accounts (Rollovers into 529 CHET accounts)
9. Financial Management and Asset-Specific Training (mandatory requirement)
Six (6) Financial Management Classes - Provided by CTE or Partner
- Home Buyer Education / Certificate - Partner Organization
- Business Planning /Business Plan - Partner Organization
- Education & Career Counseling - Proof of Enrollment - Accredited Institution
Wealth & Asset Development Volunteers Hours
- 17 VITA volunteers provided a total of 358 volunteer hours = $7,160 in-kind
- 7 AARP volunteers provided a total of 270 volunteer hours = $5,400 in-kind
- Nina Myers, a GE VITA volunteer, received the GE Eagle Award for her outstanding achievements at GE Energy Financial Services. Nina chose us, Wealth & Asset Development, to receive her generous $10,000 charitable award.
2009 Taxwise Clinics
- 414 appointments scheduled through Family Services (AARP - 212 & VITA 202)
- 233 Federal returns accepted (AARP - 112 & VITA - 121)
- $450,980 in total Federal refunds
- 80 EIC refunds totaling $130,126 (AARP - 47 & VITA - 33)
- 69 Child Tax Credits totaling $92,717 (AARP - 29 & VITA - 40)
CTE IDA Return on Investments
- 1998 - 2010 Stats represent CTE & Partners
- Total Assets Return on Investment (ROI) is $14,774,506
- 68 homes with a cumulative value of $14,365,389
- 37 post-secondary education opportunities cumulative value of $174,353
- 32 businesses with a cumulative value of $234,764
- Total purchasers' savings was $522,895
For more information, please contact:
Betty McCree,
Director, at (203) 352-4858
Ester Grant-Tinsley,
Project Assistant, at (203) 352-4868
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Betty McCree
Director
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Ester Grant-Tinsley
Project Assistant |
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