New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 79 - INDIVIDUAL DEVELOPMENT ACCOUNTS › Part 1 - GENERAL PROVISIONS › Section 2.79.1.10 - PARTICIPATION CRITERIA FOR PROGRAM ADMINISTRATORS

Current through Register Vol. 35, No. 13, July 16, 2024
A. In order to receive state funds and be
				approved by the director, a program administrator shall demonstrate, to the
				satisfaction of the division, that it meets the criteria below.
(1) It shall qualify as a tax-exempt,
				not-for-profit organization under Sections 501(a) and 501(c)(3) of the Internal
				Revenue Code of 1986, a tribe or an instrumentality of the state.
(2) It shall establish a reserve account with
				an authorized financial institution sufficient to meet the matching fund
				commitments made to all account owners participating in the program and shall
				report at least quarterly to each account owner the amount of money available
				in the reserve account to match the account owner's withdrawal for an allowable
				use following completion of all program requirements.
(3) It shall offer a comprehensive financial
				literacy program and other necessary training pertinent to the allowable uses
				agreed to by the account owner either with its own staff or through a plan of
				action utilizing qualified providers.
(4) It shall develop partnerships with
				financial institutions, develop account owner matching funds and manage the
				operations of an individual development account that is established by the
				program administrator with fiduciary care.
(5) It shall have access to facilities that
				are reasonably accessible to account owners and comply with state and federal
				building laws.
(6) It shall have
				human and material resources sufficient to implement an individual development
				account program and shall have a successful history of providing service to
				low-income persons and of success in raising funds for that purpose. If it is a
				new organization, it shall have staff and board members who have had such
				experience in other organizations.
(7) It shall present a workable plan for
				development, implementation, fiduciary care and management of an individual
				development account program. The plan shall include endorsement from at least
				one cooperating local financial institution. The plan shall indicate the length
				of time, in months and years, of the operation of the program by the
				organization, taking into account the resources that are or will be
				available.
(8) It shall provide a
				description of its contingency plan in the event the program administrator is
				no longer able to operate the program. Such contingency plan shall include, but
				not be limited to:
(a) a requirement of
				immediate notice to all account owners and the division; and
(b) all actions the program administrator
				shall take to ensure the orderly closing of the program.
(9) It shall not possess any other deficit
				that may raise doubt as to its ability to administer an individual development
				account program, including but not limited to, conviction of a crime by any
				officer of the program administrator.
(10) It shall enter into a contract with the
				division delineating its responsibilities in a form prescribed by the
				division.