Illinois Administrative Code
Title 89 - SOCIAL SERVICES
Part 112 - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Subpart G - FINANCIAL FACTORS OF ELIGIBILITY
Section 112.156 - Assets for Independence Program
Current through Register Vol. 48, No. 12, March 22, 2024
a) The Assets for Independence (AFI) Program is a federal grant program that enables agencies to implement and demonstrate an asset-based approach for giving low-income families help out of poverty. The AFI Program allows eligible low-income Illinois citizens currently residing in Illinois, subject to the availability of State and federal funds and authorization from DHS, to open and maintain an Individual Development Account (IDA) at a federally insured financial institution.
b) IDAs are matched savings accounts designed to help low-income and low-wealth families accumulate savings to purchase a first home, start a small business or continue their education. IDAs promote savings and enable participants to acquire a lasting asset after saving for a few years. The IDA program is open to all people within the State who meet the federal and State account holder eligibility guidelines and rules for income and assets.
c) An IDA is a trust created or organized exclusively for the purpose of paying the qualified expenses of an eligible individual, or enabling the eligible individual to make an emergency withdrawal, but only if the written governing instrument creating the trust contains the following requirements:
d) For purposes of subsection (c) of this Section, a custodial account shall be treated as a trust if the assets of the custodial account are held by a bank (as defined in section 408(n) of the Internal Revenue Code of 1986 ( 26 USC 408(n) ) or another person who demonstrates, to the satisfaction of the Secretary of Health and Human Services (HHS), that the manner in which that person will administer the custodial account will be consistent with the requirements of AFIA and if the custodial account would, except for the fact that it is not a trust, constitute an IDA described in subsection (c) of this Section. In the case of a custodial account treated as a trust by reason of the preceding sentence, the custodian of that custodial account shall be treated as the trustee of the account.
e) An individual may make deposits to his or her IDA only from earned income as defined in section 911(d)(2) of the Internal Revenue Code of 1986.
f) The moneys in an IDA and match moneys from the AFI fund shall be used solely for qualified expenses, defined under section 404(8) of the AFIA, as follows:
demonstrated fiduciary integrity;
g) Moneys in an IDA that are used for the qualified expenses listed in subsection (f) of this Section shall be matched from the AFI Fund created as a fund to be held by the Secretary of DHS. Program participants will receive match funds of 1:1 for homeownership accounts. Program participants will receive match funds up to 3:1 for educational accounts, pursuant to funding availability. The AFI Fund is a source of funding from HHS and the Illinois Department of Human Services specifically designated to fund Individual Development Account Initiatives pursuant to provisions of AFIA.
h) Not more than $2,000 of moneys from the AFI Fund shall be provided to any one individual.
i) Not more than $4,000 of moneys from the AFI Fund shall be provided to any one household.
j) Persons eligible to open an IDA and to receive AFI Fund moneys are individuals currently residing in Illinois who are:
k) Moneys in an IDA, including accrued interest and matching deposits, shall be disregarded for the purpose of determining the eligibility and benefit level for TANF in the case of the individual establishing the IDA with respect to any period during which the individual maintains or makes contributions into the IDA (see Section 112.151 ).
l) To be considered fully enrolled in the IDA program, an individual must have:
m) DHS reserves the right to deny applicants that state that their only asset goal is home ownership, if those applicants do not meet the following eligibility thresholds:
n) Those individuals who do not meet the credit or income threshold requirement for the IDA homeownership initiative will be provided with the following alternatives:
o) IDA program participants shall complete basic financial management training to satisfy the federal requirement for this training. Financial education partners can provide either basic financial education or asset specific education to program participants. This training can be offered online, via teleconference, via self-study options, via partner agencies or through direct classroom training. DHS will create a menu of financial education providers that account holders may use to fulfill their financial education requirements. This education will be provided free of charge to program participants.
p) IDAs shall only be opened with the permission of DHS. Accounts may be opened via the Internet, with DHS assistance or via a telephone call to a customer representative. DHS staff will provide those individuals who complete orientation with permission to open an account by calling and utilizing a Personal Identification Number.
q) Emergency Withdrawals
r) DHS will set up a sweep account to manage electronic withdrawals from participant checking and savings accounts to IDAs. These accounts will carry no balance and will serve solely as a facilitator of the electronic funds transfer process.
s) IDAs will be set up to draft program participant's primary bank accounts on a date agreed upon by the account holder. This process will ensure timely deposits to accounts and decrease the need for social service intervention with account holders. All accounts will utilize this feature to gather participant deposits.
t) Program participants will be eligible to withdraw moneys from an IDA for eligible post-secondary education expenses and business capitalization expenses if they have participated in the program for six months and have fulfilled the financial education requirements listed in subsection (o) of this Section. Program participants will be eligible to withdraw money from an IDA for a first-time home purchase if they have participated in the program for 6 months and have fulfilled the financial education requirements listed in subsection (o) of this Section. Program participants may then complete an approved Withdrawal Request Form and submit it to the DHS Project Director. Once approved by the Project Director, the Director will submit a request that can be used for making a purchase. The request for a transfer of funds from the AFI Fund must be signed by two representatives of DHS. One of these representatives must be the DHS Chief Financial Officer.
u) All vendors will receive payment from a participant's IDA and the corresponding matching funds owed from the match funds pool. Match funds will be sent to the vendor from whom the participant is purchasing the asset. DHS will be responsible for keeping written records of funds transferred and assets purchased.
v) Program participants will need to submit a separate request for each qualified asset purchase. The provisions of subsection (t) of this Section shall apply when paying asset vendors for multiple qualified asset purchases. Purchase requests will be processed within five working days after receipt of a completed purchase requisition. A complete purchase requisition shall consist of a participant Withdrawal Request Form and a purchase order with a vendor clearly identified as the authorized payee.
w) An IDA holder shall have a 36-month period, beginning on the date DHS authorizes the holder to open the IDA, within which to make a qualified purchase.