Connecticut Individual Development

Account Initiative (IDA)
 

The Department of Labor will certify IDA programs.  For information, please call Lisa Arends at (860) 263-6794.

State Certification

The State certification is like a “seal of approval” that is intended to facilitate program success and to encourage private sector contributions and other involvement in Certified State IDA Programs.

Public Act 00-192 (codified as Conn. Gen. Stat. §31-ww, et. seq.) and its implementing regulations provide for Individual Development Account (IDA) program certification. There is no provision in the law for “agency” certification. Therefore, a separate request must be submitted for each proposed or existing IDA program an organization would like certified. 

1. A Community-Based Organization (CBO) seeking certification of an existing or proposed IDA Program must submit its request to the Connecticut Department of Labor, IDA Program, Welfare-to-Work Unit, 200 Folly Brook Boulevard, Wethersfield, CT 06109.  The request shall include:
    
   1. evidence of the community-based organization’s exempt status from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986 or any subsequent corresponding provisions of the internal revenue code of the United States, as from time to time amended;
       
   2. a plan outlining the community-based organization’s proposed or existing IDA program which shall satisfy the requirements of sections 31-51ddd-1 through 31-51ddd-16, inclusive, of the Regulations of Connecticut State Agencies;
       
   3. a description of the community-based organization’s proposed process of selecting account holders;
       
   4. a financial budget specifying the costs of training, counseling, case management, and administration of the program, provided such budget contains an assurance that no more than five percent of the total funds received from the IDA Reserve Fund are to be used for the costs of program administration and no more than fifteen percent of such total funds are to be used for the combined costs of training, counseling, case management and program administration;
       
   5. a description of the organization’s accounting procedures, including whether the community-based organization participates in Generally Accepted Accounting Principles;
       
   6. any history the community-based organization has had in successfully operating individual development account programs and a detailed description  of such programs;
       
   7. a description of the manner in which the community-based organization presently coordinates with other local organizations;
       
   8. a description of how the community-based organization will publicize the program;
       
   9. a description of the community-based organization’s procedures and timelines for the establishment of the individual development account to ensure that such establishment is sufficiently expedient to safeguard the account holder’s interest;
       
   10. a description of its procedures for monitoring account holder deposits and matching funds deposits; and
        
   11. a description of the community-based organization’s contingency plan in the event the community-based organization is no longer able to operate the program.  Such contingency plan shall include but not be limited to:
        
       1. a requirement of immediate notice to all account holders and the department; and
           
       2. all actions the community-based organization shall take to ensure the orderly closing of the program.
           
2. The Department of Labor shall review the request for certification and notify the community-based organization in writing whether the organization’s request for certification has been approved or disapproved.  Any notice of disapproval shall include the reasons for the disapproval.  The Department’s determination shall be final.  A community-based organization may resubmit a request for certification once the basis for the Department’s denial of certification has been removed.
    
3. The Department of Labor shall review certified state IDA programs on an annual basis.
    
4. The Department of Labor may conduct site reviews of any individual development account  program at any time for compliance with applicable statutes, regulations and contracts.
    
5. Community-based organizations operating certified state IDA programs shall provide the Department with full access to any program records upon request.

Suspension and Decertification Process

1. The Department of Labor may suspend or decertify a community-based organization’s program for non-compliance with applicable statutes, regulations and contracts.

2. When the Department suspends or decertifies a community-based organization’s program, the organization may request reconsideration by the Labor Commissioner of such suspension or decertification.  The Labor Commissioner’s decision shall be final.  A community-based organization may request in writing a reinstatement of the program where a community-based organization has shown to the satisfaction of the Department that the basis for the suspension or decertification no longer exists.

3. A community-based organization whose program has been suspended or decertified shall not participate in the solicitation process until the program has been reinstated.

Published by the Connecticut Department of Labor, Project Management Office