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4 <br /> Application Summary <br /> FY2002Community Development Block Grant Program <br /> Individual Development Accounts <br /> Background <br /> Individual Development Accounts are dedicated savings accounts, similar in <br /> structure to Individual Retirement Accounts (IRAs)that can only be used for purchasing <br /> a first home in Orange County. They are managed by community organizations and <br /> accounts are held at local financial institutions. Contributions for lower income <br /> participants are matched using both private and public sources. Additionally, all <br /> participants receive economic literacy training that shows them how to clean up their <br /> credit, set up a budgeting and savings schedule, and teaches them the basics of money <br /> management. <br /> The N.C. Department of Commerce and the Division of Community Assistance <br /> has set aside $500,000 of Small Cities Community Development Block Grant Funds for <br /> use in establishing IDAs. These funds will be awarded to applicants supporting <br /> homeownership IDA programs. <br /> Program Administrator <br /> The Women's Center (TWC) is currently the only non-profit organization in Orange <br /> County administering an IDA program and will have assisted 30 families in buying their <br /> first homes through Habitat for Humanity by the end of the program in June 2002. TWC <br /> is fully capable of taking on this IDA program, as it would serve as a continuation of the <br /> current IDA program. TWC's Consumer Credit Counseling Program would fulfill key <br /> roles of outreach, economic literacy training, financial counseling, account monitoring <br /> and post-purchase counseling. <br /> TWC would be working with several partners in the administration of this IDA program <br /> and has the support of these partners: <br /> Orange County <br /> Habitat for Humanity of Orange County, NC, INC. <br /> EmPOWERment, Inc. <br /> Orange Community Housing & Land Trust <br /> Central Carolina Bank <br /> Brief Program Description <br /> Twenty accounts will be set up for this IDA program. This is an appropriate number of <br /> accounts considering the amount of funding available and staff time necessary to <br /> administer the program. For a description of the on-going relationship between TWC <br />