Federal Grant to Fund IDA Tax Pilot for First-Time Homebuyers

WASHINGTON – The U.S. Department of Health and Human Services announced it has awarded the National CU Foundation a $415,000 grant to fund pilot Individual Development Accounts programs at three pilot credit union organizations. The organizations: Option 1 CU, Syracuse Cooperative FCU and El Paso Affordable Housing CUSO, will provide volunteer income tax assistance and advise low-income families applying for Earned Income Tax Credits, which will be used to open savings accounts earmarked for mortgage down payments, the Foundation announced yesterday. Low-income members who commit to financial education and saving for a down payment will be selected for IDAs, which will receive $2 in matching funds for every $1 saved. The Foundation has committed to paying half of the matching funds and each credit union organization will pay the other half. The HHS grant was awarded under the agency’s Assets for Independence program.