Current through Register Vol. 46, No. 19, March 20, 2024
(1)
Issuance of requests for
proposals. The division shall issue requests for proposals (RFPs) for
operating organizations interested in operating an IDA program. The RFP shall
require the operating organization to provide information in its proposal
regarding the financial institution that the operating organization will use
for the proposed IDA program. The division shall include such information in
evaluating proposals submitted in response to the RFP.
(2)
Review criteria used to evaluate
and select proposals responding to the RFP. The division shall
evaluate and select proposals submitted by operating organizations in response
to the RFP based upon, but not limited to, the criteria as provided in the RFP
and the following criteria, which shall be ongoing responsibilities of the
operating organization:
a. The project shall
provide for a safe and secure investment mechanism for IDAs using a financial
institution approved by the division. This provision shall include assurances
to contributors that a process is in place to ensure that contributions will be
used for approved purposes as provided in subrule 25.6(1).
b. The proposed project shall link the making
of an account holder's contributions to an IDA with other services provided by
or outcomes identified by the operating organization in the proposal. The
proposed project shall include mechanisms for the operating organizations to
monitor and enforce the identified outcomes and services.
c. The operating organization shall provide
documentation establishing experience and ability to execute the project as
proposed. Minimum capabilities shall include:
(1) An ability to provide financial education
including asset-specific education;
(2) An ability to link with tax preparation
assistance;
(3) Familiarity and
ability to work with the proposed target population; and
(4) A strong record of successful
management.
d. The
operating organization's proposal shall include a commitment by the operating
organization to provide independent matching funds for contributions made by
account holders to an IDA on not less than a 1:1 ratio.
e. The proposal shall include a monitoring
and evaluation plan for certifying the proposed project's outcomes.
f. The proposal shall include agreement and
acknowledgment by the operating organization that it shall have ongoing
responsibility for:
(1) Certifying that an
investment account is an IDA based on its having the characteristics described
in Iowa Code section
541A.2.
(2) Certifying annually the income
eligibility of each account holder and the amount of contributions made by the
account holder to the IDA during the preceding tax year, in order to determine
the account holder's eligibility for the state match payment for such
year.
(3) Recording annually the
contributions made by the account holder, individual and charitable
contributors, and the state.
(4)
Submitting information regarding the IDA and account holders to the division as
requested.
(3)
Additional evaluation criteria in the RFP. The division may
include additional evaluation criteria in the RFP, including but not limited to
the operating agency's ability to network with other agencies or to form a
communitywide consortium of agencies, if desirable, to operate IDAs; ability to
form an effective working relationship with banks or other financial
institutions; and ability to raise funds to provide an independent match on
account holder deposits.
(4)
Other considerations and guidelines. Other considerations and
guidelines in implementing IDAs are:
a. The
division shall have authority to designate and limit the number of locations
where IDA projects shall be implemented, taking into account demographic
characteristics and geographic considerations.
b. The division shall require all IDA
operating organizations and projects to comply with any federal individual
development account program requirements for drawing federal funding.
c. The division and the operating
organization shall enter into an agreement that specifies the responsibilities
of both parties. The agreement shall incorporate by reference the provisions of
the RFP.
d. The operating
organization shall maintain a clear and precise audit trail of all deposits and
withdrawals of funds in IDAs. All withdrawals from an IDA shall require a
signature of approval from the operating organization. Upon the termination of
the agreement between the operating organization and the division or upon the
discontinuance of the IDA program for any reason, the IDA accounts under the
management of that operating organization shall terminate and the funds in the
IDAs shall be distributed to the account holders, unless the operating
organization and a successor operating organization located in the same
geographic area and operating an IDA program approved by the division enter
into an agreement for the transfer of IDA accounts to the successor operating
organization. The division shall have authority to review and approve in
advance the agreement between the two operating organizations.
e. Upon the termination of an operating
organization's relationship with the financial institution holding its IDA
accounts, the operating organization managing the accounts shall enter into an
agreement with a division-approved successor financial institution to hold the
accounts and shall arrange for the transfer of the accounts to the new
financial institution. The new agreement shall be subject to the division's
review and advance approval.
f. If
an account holder moves within the state to a location that is not served by
the operating organization but is served by another operating organization with
a division-approved IDA program, the original operating organization shall
arrange for the transfer of the account to a financial institution that has an
agreement with the operating organization in the new location. If there is no
operating organization in the new location, the IDA account shall be closed,
with funds in the account distributed to the account holder; alternatively, the
operating organization and the account holder may jointly agree to maintain the
account under the management of the existing operating organization and
financial institution. The operating organization shall provide a written
notification to the division of all transfers of IDA accounts to the management
of a new operating organization.