Individual Development Account Initiative
History of IDAs
1993 - Professor Michael Sherraden first introduced the concept
of IDAs in his book Assets and the Poor. He urged the
importance of putting a "level floor of assets under each family" in
1997 - The American Dream Demonstration Project (ADD) became the
first large-scale test of IDAs. ADD is a five-year project supported by
several national and local foundations; private organizations, companies and
individuals; and state, local and national governments. Preliminary results
from ADD can be found on the Center for Social Development's Website. (See
1998 - CTE, Inc., the Community Action Agency serving Stamford,
Greenwich and Darien, started the first IDA Program in Connecticut.
1999 - Connecticut State Treasurer Denise Nappier formed a Task
Force on IDAs. Task Force members included IDA program practitioners and
representatives from financial institutions, foundations, government, and
community-based organizations. Also in 1999, the U.S. Government instituted
a five-year IDA Demonstration Project called the Assets for Independence (AFI)
Program. It is administered by the U.S. Department of Health and Human
Services, Office of Community Services. There are several Assets for
Independence Demonstration Programs operating in Connecticut.
January 2000 - The Connecticut Office of the State Treasurer
published the Task Force on Individual Development Accounts Report &
Recommendations for expanding IDAs in Connecticut.
May 2000 - The Connecticut General Assembly passed legislation
enacting a Connecticut Individual Development Account Initiative, and
approved the Governor's request for $400,000 in first-year funding for its
June 2002 - The Connecticut General Assembly approved an
additional $300,000 to implement the Connecticut IDA Initiative.
- April, 2003 - The Connecticut Department of
Labor launched the CT IDA Initiative, which includes IDA program
certification and funding.
January 2006 -
State Legislature passed a bill establishing a
Connecticut Housing Trust Fund, and stipulated that each year $300,000 of
the Fund be used for housing IDAs.
- To Date (2016):
The Connecticut State Legislature has appropriated approximately $2,925,250
for the Connecticut IDA program and $600,000 for the Connecticut Housing
Trust Fund IDA program. These funds have allowed for the leveraging of
federal funds in the amount of $907,500 for IDA programs statewide as well
as over $1,186,600 in contributions from financial institution partners and
other businesses, foundations, United Ways, and municipalities. Previously
the Department of Labor co-administered four federally-funded Assets for
Independence IDA Programs. The Department currently oversees the Connecticut
IDA Program. In summary, the Connecticut Department of Labor has
administered ten IDA grants that have resulted in 424 low- and
moderate-income Connecticut families becoming asset owners. In addition,
IDA programs have created life-long savings habits for hundreds more
families. These habits are effective in helping deal with emergencies,
create economic stability and strengthen families.
200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000
State of Connecticut