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PROCEDURES TO FOLLOW, POLICIES TO REMEMBER & ANSWERS TO
COMMONLY ASKED QUESTIONS ABOUT THE IDA PROGRAM
WHAT IS THE IDA AND YIDA PROGRAM?
The Individual Development Account (IDA) Program is a program to help working individuals and/or students attending school, save money to achieve their financial goals. For every $1 you save, Cherokee Nation IDA will match it anywhere from $1 to $3.
How does the program work?
First we assist you in opening an IDA savings account with a designated bank. ($30.00 to set up account)
You must then deposit $30 every month for 24 months (your total savings will be $720 plus interest)
Cherokee Nation IDA will match your savings anywhere from $1 to $1 up to $3 to $1
You must attend 12 hours (12) of Economic Literacy classes in the first year of the program
You must attend an Asset Specific class in the second year of the program
What can I use my savings and match for?
Home Purchase: Your IDA can be used for the down payment, or closing cost on a new home.
Business: You can use your IDA to cover the cost of starting a small business.
Education: Your IDA can be used for education. This includes vocational and technical, community college, 4-yr college or university, and training to obtain a professional certificate or license.
Housing Rehab: Your IDA can be used to improve your existing home
Can I switch my goal intention at any time?
Participants are allowed to switch between asset goals during the savings term. They must, however, receive training regarding their final goal before funds can be withdrawn.
Can I take money out any time ?
Yes. You always have complete control over your savings. However if you withdraw savings for an unapproved reason, you will not receive matching funds, and you lose eligibility for continued participation in the program.
Can I take funds out for emergencies?
Yes, a limited amount may be withdrawn for emergencies. But, if you withdraw the entire balance you may loose eligibility for continued participation in the program.
What if I miss a monthly deposit?
Participants may miss up to two monthly savings deposit within a twelve-month period without penalty. Participants missing a monthly deposit; will be contacted verbally within five working days to discuss the missed payment. The IDA policy governing missed payments will be fully explained to the participant and one-on-one budget counseling will be offered. Participants missing a second monthly deposit will receive a personal visit by the IDA Coordinator. Again the missed payments, as well as the cause of the missed payments, will be discussed. Any monthly deposits missed by participants MUST be deposited before the end of the twenty-four month savings period in order to receive any matching funds on the account in whole.
WHO IS ELIGIBLE FOR THE PROGRAM?
Applicant Qualifications:
- Tribal Membership
- Applicant must have a CDIB/Tribal Membership card from a federally-recognized tribe.
- Applicant will verify membership with acceptable documentation from tribe.
- Residence
- Applicant must reside within the 14 county jurisdictional area of Cherokee Nation.
- Applicant will verify residence with utility bill or other acceptable documentation.
- Income
- Household income must fall at or below the limits as listed below.
- Applicant and household members will provide W2s or current pay stubs to verify income.
- Employment
- Applicant must be gainfully employed /enrolled in school during the 24-month savings period.
- Applicant will sign a release of information form allowing Cherokee Nation IDA/YIDA Program to verify employment/school enrollment.
- Age
- IDA Applicants must be at least 18 years of age.
- YIDA Applicants must be at least 14 years of age with a consenting parent or guardian.
If you have a job and your income is within the program guidelines, you have a CDIB/Tribal Membership card from a federally-recognized tribe, live within the Cherokee Nation jurisdiction and are age18 or older, you are eligible to apply.
| INCOME GUIDELINES WILL INCREASE FEBRUARY 2007 |
Family size |
Gross Income |
1 |
$19,600 |
2 |
$26,400 |
3 |
$33,200 |
4 |
$40,000 |
5 |
$46,800 |
6 |
$53,600 |
7 |
$60,400 |
8 |
$67,200 |
Added Family member |
$6,800 |
How many people can join from each family?
Only one adult may join from each co-habitating family unit. Adult children may also join. If adult children and parents both participate, they may NOT combine their IDA savings or match moneys to purchase a single asset.
What if I have bad credit?
Credit checks will not be a means to disqualify applicants. A credit check may, however, determine the direction of the participant's savings goal. i.e., a person with poor credit may not be a suitable candidate for the housing goal or the business goal. The savings period is two years and that may be adequate time to repair a credit record.
How will my IDA account be managed?
Your account will be held at a Cherokee Nation designated banking facility. You will be able to make deposits at any of the designated bank branches and you will receive monthly statements regarding your savings and matching funds. You may also mail your deposits to the bank.
How long do I have to save before making an approved purchase?
Twenty-four (24) months, the full term of the program.
What if I move out of 14 county jurisdiction while I am in the program?
Participants, once established in the program, will not be disqualified for moving outside of the Cherokee Nation Jurisdictional boundaries. The participants will, however, be disqualified if their location prohibits their full participation in established requirements.
Under what conditions would I be expelled from the IDA Program?
Participants may be expelled for the following reasons:
Providing false or fraudulent information on the IDA Application
Missing more than two monthly deposits in a 12 month period
Making more than two withdrawals (or unapproved) within a 12 month period
Withdrawing in excess of fifty percent of the IDA account balance.
Failure to attend all courses specified for completion of program.
Can I save more than my monthly-required deposits?
Participants may save more that the required monthly deposits. Additional saving to the IDA account will, however, not result in more matching funds at the end of the 24-month savings period.
How long will this program last?
The program will last twenty-four months. You can stay in the entire twenty-four months, or you may choose to withdraw from the program at any time. (If you choose to withdraw before the twenty-four months are up, you will not receive matching funds).
Will there be joint accounts?
No. IDA Accounts will be individual accounts. Spouses will not have the authority to withdraw funds from the account without the consent of the IDA participant.
How long after the 24-month savings period do I have to use the savings and matching funds?
The IDA Accounts must be used within 12 months after the completion of the 24 month savings period. Accounts remaining unused within this period will be closed and transferred into a regular savings account and will forfeit matching funds.
When will match money be deposited in accounts?
Matching funds will not be deposited into participants' IDA accounts. The Cherokee Nation designated bank will maintain the matching funds in a separate account. When participants are ready to use their IDA savings and matching funds, the bank will withdraw the matching funds amount and will place in form of a check payable to vendor(s). Matching funds will not be given directly to the participant. This will help ensure that funds are used as goal intentions specified at beginning of program.
What is an Exit/Withdrawal Interview?
Participants may withdraw from the program at anytime. If withdrawing before completing 24-month savings period, you will need to contact the IDA Program Coordinator, or just withdraw all savings from IDA account, and an exit interview will be conducted to determine the reason for withdrawal. Should the participant withdraw during 24-month savings period, the matching funds will be forfeited.
An exit interview will also be conducted with completion of the program. This will allow the participant to ask any further questions and/or make comments about any further intentions for savings.
If you have further questions, please call:
Cherokee Nation IDA Program Coordinator
1-918-207-3834
commerce@cherokee.org
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