Program Description

Program/Practice Description: Denver's IDA program is administered by MHUW in collaboration with a diverse group of community partners. They have partnered with two financial institutions (Wells Fargo and Denver Community Federal Credit Union) that open the IDA accounts and report the activity to MHUW. Participants are offered a $4 match for every dollar they put in, for a maximum savings of $1,000 and a maximum matching amount of $4,000.

Innovations and Results: To date, this program has helped 446 individuals save $439,077 and provided matched funds in the amount of $1,374,637. Additionally, this program has formed a partnership with Denver Human Services to provide $350,000 in Temporary Assistance for Needy Families (TANF) funds for 55 IDA slots. MHUW is also in the process of working with the Denver Housing Authority and Denver Health to provide IDAs through these organizations.

Operations: To qualify for most sources of funding for the program, participant net worth cannot exceed $10,000 (excluding primary residence and automobile) and they qualify based on income claimed for the Earned Income Tax Credit (see Tool 4 for more information on eligibility). The program requires participants to save a minimum amount for at least 6 months, make a minimum monthly deposit into their IDA, miss no more than three deposits in 12 months, complete an approved financial education course, participate in asset-specific counseling, contact the case manager to access matched funds, and make a qualified purchase. For participants who use TANF funding, the income guidelines are less stringent and must be qualified annually by their IDA case manager. Once participants have met these requirements and are ready to make a purchase, they may use the funds for pre-approved expenses. To use matching funds, participants must provide their case manager with a vendor estimate of the pre-approved expense. The case manager will submit this information to MHUW and a check will be issued payable to the vendor.

Community Partners: Program participants are recruited and referred through an extensive network of community partners. Case management services are offered through partners. Community partners are organized into three categories: micro enterprise counseling partners; housing counseling partners; and education counseling partners. Financial education classes also are offered by community partners. Participants are assigned to a case manager at the referral community partner to help them develop a savings plan based on savings goal, savings period, and financial circumstances; to access funds; and to serve as their first point of contact for questions or concerns regarding the IDA program.