Oregon Housing and Community Services (OHCS), in partnership with Neighborhood Partnerships (NP), announce $11.5 million in funding to support the Individual Development Account Initiative statewide.
An Individual Development Account (IDA) is a matched savings account, where the money participants save is multiplied up to five times by the program. As Oregonians face inflation and rising housing costs, IDAs provide a crucial resource for those with lower incomes to address financial needs such as down payment savings, higher-education costs, microenterprise investments, emergency savings, and investment in other wealth-building assets, supported by financial education and literacy.
IDAs are offered by a statewide network of community organizations, housing authorities, schools, and colleges.
“The Oregon Individual Development Account Initiative serves as a powerful example of collaboration between state governments and community-based organizations to build more inclusive, resilient, and equitable communities across the state,” said Andrea Bell, OHCS executive director. “The additional investment underscores the state’s commitment to facilitate solutions that advance social and economic mobility.”
To date, the IDA program has empowered more than 17,000 Oregonians in 35 of the state’s 36 counties, distributing $68 million in matching dollars to savers. Through its network of providers, the Initiative makes IDAs accessible to Oregon residents who have been excluded from opportunities to build lasting financial stability, including residents from Black, Native American, Latinx, and Asian communities throughout the state.
“As the longtime administrator of the Oregon IDA Initiative, Neighborhood Partnerships and our network of community-based partners are thrilled to receive an additional $5 million from the Legislature, which will be used by Oregonians with lower incomes to increase the power of their own savings to reach self-determined financial goals, including first-time homeownership, higher education, and entrepreneurship,” said Luke Bonham, IDA program manager.
This funding is being distributed through fiduciary organizations to aid Oregonians in achieving their financial goals through matched savings. The addition of $5 million in General Funds allows a two-phased funding approach in 2024-25 to help support the IDA Initiative’s continued growth and success. The approach aims to increase reach in underrepresented counties, graduate BIPOC savers at rates that promote racial equity in asset building.