The Housing Authority of Tacoma will receive $100,000 from the state Department of Community, Trade and Economic Development (CTED) to continue its expertise in homebuyer assistance to help more than 30 low-income renters buy homes in Tacoma and Pierce County, according to a statement released today.
In total, CTED has awarded nearly $700,000 in funding for six innovative projects in eight counties to help low-income residents invest in home ownership, education and small business start ups to improve their lives.
The Individual Development Account (IDA) Program, created and funded by legislators in May, is a saving account for qualifying low-income households that match at a rate of one dollar for every dollar deposited.
CTED is expecting to help more than 400 low-income individuals and families improve their lives by saving for and buying major assets that help meet training, education, housing, medical and transportation needs. Account holders can earn up to $4,000 in state match.
CTED received nine proposals, asking for a total of $1.9 million, said Paul Knox, policy and performance manager for CTED who is overseeing the IDA project.
“There were several excellent proposals,” Knox said. “These are the kind of innovations that help people in our state realize their dreams, and all of these agencies and their partners are committed to making it happen.”
Service providers will recruit eligible account holders, train and counsel on financial literacy and then approve asset purchase and make sure the proper match is followed and performance is closely measured.
IDAs aren’t a new idea, and in the past decade tens of thousands of low-income people have used them to save, invest and improve their lives, Knox said.
In Washington State, CTED WorkFirst staff used a one-time investment in welfare to work funding to pilot an IDA program between 2000 and earlier this year. The funding helped nearly 400 families achieve their dreams, including more than 150 families that bought homes, he said.
The IDA program is being administered by the state Department of Community, Trade and Economic Development (CTED). CTED is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington State. For more information, please visit http://www.cted.wa.gov.
