54-64 Individual Development Accounts
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<![CDATA[CHAPTER 54-64INDIVIDUAL DEVELOPMENT ACCOUNTS54-64-01. Definitions. In this chapter, unless the context otherwise requires:1."Community action agency" has the meaning as provided in section 54-44.5-01.2."Division" means the department of commerce division of community services.3."Eligible educational institution" means a division-approved institution of higher<br>education or approved area vocational education school.4."Household" means all individuals who share use of a dwelling unit as primary<br>quarters for living and eating separate from other individuals.5."Individual development account" means a matched savings account opened by a<br>household participating in the North Dakota individual development account<br>program.6."Permissible use" means any of the following:a.Tuition at an eligible educational institution and expenses at an eligible<br>educational institution, including books, eligible supplies, and equipment<br>required for courses of instruction.b.For first-time home buyers, acquisition costs of acquiring or constructing a<br>principal residence, including any usual or reasonable settlement, financing, or<br>other closing costs. As used in this subdivision, acquisition costs of a principal<br>residence has the same meaning as under section 1034 of the Internal<br>Revenue Code of 1986 which do not exceed one hundred twenty percent of the<br>average area purchase price applicable to the residence determined according<br>to section 143(e)(2) and (3) of the Internal Revenue Code of 1986.c.Business capitalization expenses for expenditures on capital, plant, equipment,<br>working capital, and inventory expenses of a legitimate business pursuant to a<br>business plan approved by a community action agency.54-64-02.Funds awarded.The division shall allocate state funds to participatingcommunity action agencies to provide matching funds for eligible individual development<br>accounts. The division shall allocate funds to achieve geographic balance in the eight regions<br>served by this program. The division shall document the capacity of participating community<br>action agencies to manage the program and to raise the private match.54-64-03. Community action agency duties. In order to be eligible to participate in thisprogram, a community action agency shall:1.Provide a separate account for the immediate deposit of program funds;2.Establish a process to select participants and describe any priorities for participation;3.Enter an individual development account agreement with the household to establish<br>the terms of participation;4.Provide households with economic literacy education;5.Provide households with asset-specific education;6.Provide matching deposits for participating household;Page No. 17.Coordinate with other related public and private programs; and8.Establish a process to appeal and mediate disputes.54-64-04. Household eligibility - Participation. To be eligible for matching funds underthis chapter, a household:1.Shall sign an individual development account agreement that includes the amount of<br>scheduled deposits into the household's individual development account, the<br>proposed use of the funds, and the proposed savings goal;2.Shall agree to complete an economic literacy training program and asset-specific<br>training; and3.At the time of application, must have an income that does not exceed two hundred<br>percent of the federal poverty line.54-64-05. Withdrawal - Matching - Permissible uses.1.To receive a match, a participating household must transfer funds withdrawn from<br>the household's individual development account to the household's matching fund<br>custodial account held by the community action agency, according to the individual<br>development account agreement. The community action agency shall determine if<br>the participating household's match request is for a permissible use consistent with<br>the household's individual development account agreement.2.At least quarterly and at the time of an approved withdrawal, the community action<br>agency shall ensure the household's custodial account contains the applicable<br>matching funds to match the balance in the household's individual development<br>account, not including interest.3.Matches must be provided as follows:a.From matching funding provided under this chapter, a matching contribution of<br>no more than one dollar for every one dollar of funds withdrawn from the<br>household's individual development account, not to exceed a lifetime limit of<br>two thousand dollars; andb.From nonstate funds, a matching contribution of no less than one dollar for<br>every one dollar of funds withdrawn from the household's individual<br>development account, not to exceed a lifetime limit of two thousand dollars.4.Upon receipt of transferred custodial account funds, the community action agency<br>shall make a direct payment to the vendor of the goods or services for the<br>permissible use.54-64-06.Considerationforassistanceprograms.Astate-administered,means-tested program may not adversely consider a household's individual development<br>account savings and matching funds in determining eligibility for the program.54-64-07. Program reporting. Quarterly, the fiscal agent on behalf of each communityaction agency participating in a North Dakota individual development account under this chapter<br>shall report to the division, identifying the participants with accounts; the number of accounts; the<br>amount of savings and matches for each participant's account; the uses of the account; and the<br>number of businesses, homes, and educational services paid for with money from the account,<br>as well as other information that may be required for the division to administer the program.Page No. 2Document Outlinechapter 54-64 individual development accounts]]>