The Policy & Research Group Releases Second-Year Evaluation of Louisiana IDA Program

November 2008 – The Policy & Research Group has submitted a second-year evaluation report of the Individual Development Account program administered by the Southern University Center for Social Research. The report provides a formative assessment of how the program progressed toward self-determined targets during the first two years of implementation.

The Louisiana Department of Social Services contracted with PRG to provide evaluation services to Southern University’s IDA program (SUIDA), including the development of data collection instruments, data collection and analysis, technical assistance, and reporting. Data analyzed in the second-year evaluation indicate that SUIDA exceeded its performance targets for participant enrollment and numbers of participants successfully completing financial literacy and asset-specific (homeownership) training. The SUIDA program assisted 118 families in purchasing their first homes; program staff report that they have been able to help participants to acquire reasonable closing costs and avoid high-risk financing through an intensive review of home closing packages.

The SUIDA program aims to reduce poverty by (1) assisting low-income families with developing savings accounts for the first-time purchase of a home by matching earnings deposited into accounts with available TANF funds; and (2) educating participant about financial management, asset development, and other financial literacy components, including financial responsibility and savings strategies. Clients are recruited and referred from faith-based organizations, community action agencies, community development corporations, housing authorities, TANF agencies, workforce development agencies, credit counseling agencies, marriage strengthening coalitions, social service organizations, civic organizations, and financial institutions.

The Southern University Center for Social Research was awarded a contract to administer the IDA program starting in October 1, 2006. The program has been funded through one-year TANF contracts.