- Introduced -
SB 699 - This act establishes the Family Development Account Program. The program is intended to allow low-income families to set up special accounts with community groups, and to encourage charitable organizations to assist families with certain expenses.
The act allows certain low-income individuals to set up subaccounts within savings accounts held by Community Based Organizations in financial institutions. Withdrawals from these subaccounts may be made to cover educational costs, job training costs, the purchase of a home, major home repairs and improvements, and start-up capitalization projects.
The Community Based Organizations will manage the accounts, solicit contributions, and make matching deposits. No more than 15% of all funds in the account may be used for administrative costs. Money deposited or withdrawn from an account are exempt from taxes. Tax credits to contributors are also available.
Independent evaluations and audits of the program will be made annually.
JOHN MESSMER