44:10-89 - New Jersey Individual Development Account Program
44:10-89. New Jersey Individual Development Account Program
4. a. The New Jersey Individual Development Account Program is hereby established within the Department of Community Affairs. The purpose of this program shall be to provide each eligible individual in this State with an opportunity to establish an individual development account in a financial institution, to the extent funding will permit. The individual development account may be used for any of the purposes specified under subsection c. of section 5 of this act.
b.There is established in the department, the Individual Development Account Fund. This fund shall be used by the commissioner to provide:
(1)grants to community-based organizations selected by the commissioner to participate in the program; and
(2)a State match of one dollar for every one dollar of earned income deposited into an individual development account by the account holder, except that the maximum amount provided as a match per individual development account per calendar year shall be $1,500. The earned income deposited into an individual development account shall not be deposited on behalf of the account holder by a third party.
Community-based organizations may raise additional, non-federal or State funds to increase the State match rate and the State maximum annual match amount.
c.The commissioner shall implement this program by entering into agreements with community-based organizations which the commissioner shall select through a request for proposal process, pursuant to the provisions of P.L.1987, c.7 (C.52:14-34.4 et seq.).
d.In reviewing the proposals of community-based organizations, the commissioner shall consider the following factors:
(1)the not-for-profit status of the organization;
(2)the fiscal accountability of the organization;
(3)the ability of the organization to provide its moneys or raise moneys from program contributors for matching contributions which are in addition to State matching funds;
(4)the plan of the organization for the development, implementation and management of an individual development account program;
(5)the capacity of the organization to provide economic literacy training, either directly or through another provider;
(6)the organization's history of working with low-income populations;
(7)the target population and the extent to which the organization plans to exceed the 33.3 percent minimum participation under this act by current or former Work First New Jersey recipients pursuant to P.L.1997, c.38 (C.44:10-55 et seq.), or Aid to Families with Dependent Children recipients or Temporary Assistance for Needy Families recipients pursuant to 42 U.S.C. s.601 et seq.; and
(8)the length of time, in months and years, of the operation of the program, taking into account the resources that are available to the organization.
e. (1) The commissioner shall select community-based organizations and enter into a contract for services with each organization selected that requires the organization to establish and maintain an individual development account reserve fund and work with each eligible individual and any local financial institution to establish an individual development account, among other services to be provided for eligible individuals and their households, if any.
(2)The commissioner shall have the discretion to disburse moneys from the fund in a manner and an amount the commissioner deems appropriate and consistent with the community-based organization's contract for services and proposal selected pursuant to this subsection and subsections c., d. and f. of this section.
f. (1) No more than 10 percent of the federal Temporary Assistance for Needy Families funds under this act may be used for administrative purposes by a community-based organization selected to participate in the program.
(2)No more than 10 percent of the federal Temporary Assistance for Needy Families funds under this act may be used to provide economic literacy training and one-on-one financial counseling to account holders by an organization selected to participate in the program.
g.At all times, a minimum of 33.3 percent of the account holders participating in the program shall be current or former Work First New Jersey recipients pursuant to P.L.1997, c.38 (C.44:10-55 et seq.) or Aid to Families with Dependent Children recipients or Temporary Assistance for Needy Families recipients pursuant to 42 U.S.C. s.601 et seq., unless otherwise authorized by the commissioner.
L.2001,c.93,s.4.