54-64 Individual Development Accounts - North Dakota Statutes

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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
education or approved area vocational education school.4."Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.5."Individual development account" means a matched savings account opened by a
household participating in the North Dakota individual development account
program.6."Permissible use" means any of the following:a.Tuition at an eligible educational institution and expenses at an eligible
educational institution, including books, eligible supplies, and equipment
required for courses of instruction.b.For first-time home buyers, acquisition costs of acquiring or constructing a
principal residence, including any usual or reasonable settlement, financing, or
other closing costs. As used in this subdivision, acquisition costs of a principal
residence has the same meaning as under section 1034 of the Internal
Revenue Code of 1986 which do not exceed one hundred twenty percent of the
average area purchase price applicable to the residence determined according
to section 143(e)(2) and (3) of the Internal Revenue Code of 1986.c.Business capitalization expenses for expenditures on capital, plant, equipment,
working capital, and inventory expenses of a legitimate business pursuant to a
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
accounts. The division shall allocate funds to achieve geographic balance in the eight regions
served by this program. The division shall document the capacity of participating community
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
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
scheduled deposits into the household's individual development account, the
proposed use of the funds, and the proposed savings goal;2.Shall agree to complete an economic literacy training program and asset-specific
training; and3.At the time of application, must have an income that does not exceed two hundred
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
the household's individual development account to the household's matching fund
custodial account held by the community action agency, according to the individual
development account agreement. The community action agency shall determine if
the participating household's match request is for a permissible use consistent with
the household's individual development account agreement.2.At least quarterly and at the time of an approved withdrawal, the community action
agency shall ensure the household's custodial account contains the applicable
matching funds to match the balance in the household's individual development
account, not including interest.3.Matches must be provided as follows:a.From matching funding provided under this chapter, a matching contribution of
no more than one dollar for every one dollar of funds withdrawn from the
household's individual development account, not to exceed a lifetime limit of
two thousand dollars; andb.From nonstate funds, a matching contribution of no less than one dollar for
every one dollar of funds withdrawn from the household's individual
development account, not to exceed a lifetime limit of two thousand dollars.4.Upon receipt of transferred custodial account funds, the community action agency
shall make a direct payment to the vendor of the goods or services for the
permissible use.54-64-06.Considerationforassistanceprograms.Astate-administered,means-tested program may not adversely consider a household's individual development
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
shall report to the division, identifying the participants with accounts; the number of accounts; the
amount of savings and matches for each participant's account; the uses of the account; and the
number of businesses, homes, and educational services paid for with money from the account,
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