History of IDAs in DC

In 2001 the District of Columbia enacted an IDA law that received $200,000 in funding from the DC City Council. CAAB has supported IDAs with private and federal funds since 1997. The enactment and funding of DC’s Opportunities Account Act will greatly advance IDA programs in the District. The benefits of IDAs in DC are great.

• In 2003, the US census bureau it is estimated that 20.2 percent of the District’s 563,000 residents were living below the poverty level. This translates into roughly 113,000 families that could benefit from IDAs. Moreover, this figure does not capture the high percentage of DC residents that are the "working poor," living at or below 200 percent of the poverty line that could also benefit from Individual Development Accounts.
• 40.8 percent of District residents are homeowners, compared to 66.2 percent of the population nationally and 68.1 and 67.7 percent of residents in neighboring Virginia and Maryland respectively.
• In specific areas of Washington DC, the percentage of individuals lacking postsecondary education is significant. For instance, in Ward 7 85.9 percent of residents do not have postsecondary education, a valuable asset to increasing income and employment.

Council member David Catania introduced IDA legislation in the DC City Council. CFED, Citibank, CAAB, its member organizations, and several IDA participants testified before the City Council. CAAB staff worked with Mr. Catania’s office on redrafting the bill to reflect best practices from the field and the particular needs of District residents. The bill became law In April 2001 when approved by Congress. The outline of Opportunity Account Act’s provisions is:

• IDA participants must be at or below 85% of DC median income
• Approved purposes: homeownership, post-secondary education, retirement, medical emergency or microenterprise
• 2 to 1 match, provided one dollar of non-DC (private or federal) match funds is used to claim one dollar of DC match funds
• IDA programs operated by non-profits selected in a competitive process
• Opportunity Accounts Act overseen by the DC Department of Insurance, Securities and Banking
• DC funds may be used for administrative costs
• Appropriations as source of DC funds

CAAB has received $200,000 through the Opportunity Accounts Act in fiscal years 2004 through 2007