IDAs and CAAs: A Natural Partnership
A Technical Assistance Document for Community Action Agencies Operating Individual Development Account Programs
8. |
IDA Policy Suggestions |
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We asked our respondents, "What federal or state policies, if enacted, would increase the possibility of more IDA Programs within the CAA network?" The most often mentioned was, by far, more funding - administrative, operating and match. Other answers were:
- Specific changes to AFIA policies: more flexibility regarding eligibility, match rates, time to save; the elimination of the non-federal match; allowing federal funds (e.g. HUD funds) to be used for match.
- Passage of the Savings for Working Families/C.A.R.E. Act
- More allowable assets (car, home rehab, transportation, retirement)
- Expansion of tax credits for IDA contributions
- More availability of mortgage credit for low-income borrowers
- A State IDA Program; more attention to IDAs in State policies
- Strengthening CRA and increasing incentives for financial institutions
- Support through programs such as PRIME (Program for Investment in Microentrepreneurs)
- Private/government partnerships to protect individual assets
- Better loan policies for first time homebuyers
- Tougher anti-predatory lending laws
- Training and technical assistance funding
- Mandating developers to set aside housing units for IDA customers. For CRA credit, financial institutions would be mandated to underwrite costs of developers that include housing development for the low-income.
- Additional resources in rural areas
