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3 <br /> ADMIcation Summary <br /> FY200ICommunity 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 /> Program Administrator <br /> The Women's Center (TWC) will administer the IDA program as a continuation of the <br /> current IDA Program funded for the last two years that has assisted more than 15 <br /> families in buying their first homes through Habitat for Humanity. TWC's Consumer <br /> Credit Counseling Program would fulfill key roles of outreach, economic literacy training, <br /> financial counseling, account monitoring 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 /> Approximately 20 participants will be required to save a full $1000 during the course of <br /> the IDA program. Savings account will be opened with a minimum $50 initial deposit <br /> and participants will save a minimum of$50 per month that must come from earned <br /> income. The minimum savings period will be six (6) months and the maximum/ideal <br /> savings period will be eighteen (18) months. In addition, participants will be counseled <br /> throughout the program and especially after the purchase of their home that continued <br /> savings are essential to deal with normal home and lawn maintenance and also for <br /> emergencies. <br /> In the event of an emergency, participants may make only one (1) emergency <br /> withdrawal and are required to inform the administrator of their intent to do so. <br />