Deposits must be made from earned income. IDA program sites will be chosen, and administered, on a regional basis, with consideration given to establishing a mix of urban and rural sites. HB 4786, sponsored by Rep. Hubert Price, passed and was signed into law by the Governor. Other more comprehensive IDA legislation failed in the 1998 legislature, but may be reintroduced at a later date. HB 4786 calls for the creation of a state department of social services to oversee an IDA program, to be opened to individuals eligible for state family independence assistance funds.
Permissible uses are to acquire, construct or re-construct a qualified principal residence.
Although not mentioned in the legislation, other uses for IDAs in Michigan are post-secondary education and small business capitalization. Savings amounts are not specified in the legislation. IDAs are established as trusts, with withdrawals for qualified uses being paid directly to the use provider. There is no cap on the total number of IDAs to be established in the state. Only earned income may be saved in IDAs, and amounts saved in an IDA will be disregarded for the purposes of qualifying for public assistance.