|
WASHINGTON, D.C.- At the offices of the Marshall Heights Community Development Organization, Councilmember David Catania (At-Large) brought attention to a newly funded government grant program that encourages low income residents to invest in a first-time home purchase, postsecondary education and job training, or start-up of a small business. When dollars are matched by public and private sources, Opportunity Accounts give low-income residents a greater incentive to save toward any goal, an opportunity they would not otherwise have.
"The establishment of 'Opportunity Accounts'," said Councilmember Catania, "greatly assists the District's low income citizens in saving to meet future costs that ordinarily would be out of reach to them in their lifetime. With this assistance, they can help themselves by utilizing their own money, coupled with the matching funds, to participate in activities such as higher education and homeownership that will help them and their family's future." The District of Columbia appropriated $200,000 for Opportunity Accounts, also known as Individual Development Accounts (IDAs) in 2001. Although organizations have supported IDAs with private and federal funds, the additional funding of D.C.'s Opportunities Account Act will greatly advance Individual Development Accounts programs in the District. In 2003, the U.S. Census Bureau estimated that 20.2% of the District's 563,000 residents were living below the poverty level. This translates into roughly 113,000 families that could benefit from Opportunity Accounts. Rhonda Kinard, a graduate of Anacostia High School and now a sophomore at North Carolina Central University, described her experience with such accounts this way, "Knowing I have the [Opportunity Account] to back me up, I look toward my future more. I make many more plans to attend college. The account gives me hope." The Opportunity Accounts Act of 2001 is overseen by the D.C. Department of Insurance, Securities and Banking. Clients must be at or below 85% of D.C. median income and be saving for homeownership, post-secondary education, retirement, medical emergency or a small business. For every dollar a low income District resident saves in an "Opportunity Account", it would be matched with at least $2 from a private foundation, federal government grants, or other sources, plus $2 from the District government. The first $200,000 made available under this law will be administered by the Capital Area Asset Building Corporation, a non-profit group selected in a competitive process. For more information regarding this matter, contact the Office of Councilmember Catania at 202.724.7772. |
