OAR 813-300-0120
Account Holder Use of Funds
(1)
Account holders only may withdraw and use IDA deposits in a manner consistent with their IDA, the relevant personal development plan, these rules and any relevant directives of the Department and its designee. IDA deposits are considered to be the participant’s savings, matching funds, and any interest earned thereon.(2)
Account holders only may withdraw and use IDA deposits for the following purposes as approved by their fiduciary organization:(a)
For the acquisition of post-secondary education or job training;(b)
If the account holder has established the account for the benefit of a designated beneficiary, for the payment of extracurricular non-tuition expenses designed to prepare the designated beneficiary for post-secondary education or job training;(c)
If the account holder has established an account for the acquisition of post-secondary education or job training, the account holder may withdraw, or authorize the withdrawal of funds, including matching deposits, into a college savings network account under ORS 178.300 (Definitions for ORS 178.300 to 178.360) to 178.360 (Consideration of amounts in accounts for higher education expenses in benefit eligibility determinations). The rollover of moneys into a college savings network account under this subsection may not cause the amount in the college savings network account to exceed the limit on total contributions established pursuant to ORS 178.335 (Network participation for higher education expenses). Any amount of the rollover that has been subtracted on the taxpayer’s federal return pursuant to section 219 of the Internal Revenue Code shall be added back in the determination of taxable income.(d)
To capitalize a small business;(e)
For the purchase of a primary residence;(f)
For the rental of a primary residence to help achieve housing stability. Account moneys also may be used for security deposits, first and last months’ rent, application fees and other expenses necessary to move into the primary residence.(g)
With respect to account holder deposits only, for an emergency as set forth in ORS 458.685 (Approved purpose of account)(2)(a);(h)
If the account holder has established a qualified tuition savings program account under ORS 178.300 (Definitions for ORS 178.300 to 178.360) to 178.360 (Consideration of amounts in accounts for higher education expenses in benefit eligibility determinations) on behalf of a designated beneficiary, for the establishment of an additional qualified tuition savings program account on behalf of the same designated beneficiary;(i)
For improvements, repairs or modifications necessary to make or keep the account holder’s primary dwelling habitable, accessible, or visitable for the account holder or a household member. This does not include improvements, repairs, or modifications made to a rented primary dwelling to achieve or maintain a habitable condition for which ORS 90.320 (Landlord to maintain premises in habitable condition)(1) places responsibility on the landlord;(j)
For the purchase of equipment, technology, or specialized training required to become competitive in obtaining or maintaining employment or to start or maintain a business.(k)
For the purchase or repair of a vehicle.(l)
For the saving of funds for retirement.(m)
If the account holder has established an account for the purpose of saving for retirement, the account holder may withdraw or authorize the withdrawal of funds, including matching deposits and interest into an individual retirement account, a retirement plan, or a similar account or plan established pursuant to the terms of The Internal Revenue Code of 1986, as amended. Any amount of the rollover that has been subtracted on the taxpayer’s federal return pursuant to section 219 of the Internal Revenue Code shall be added back in the determination of taxable income.(n)
For the replacement of a primary residence when replacement offers significant opportunity to improve habitability or energy efficiency.(3)
IDA deposits, including the interest earned thereon, withdrawn by the account holder for an emergency as set forth in ORS 458.685 (Approved purpose of account) and OAR 813-300-0120 (Account Holder Use of Funds)(2)(e) above, must be repaid by the account holder within 12 months.(4)
Account holders may withdraw IDA deposits, including interest earned thereon, to repay debts related to post-secondary education, job training, or medical purposes.(5)
Account holders may withdraw IDA deposits received to secure a loan or a financial product that is designed to improve their credit score.(6)
In addition to payment on the purchase price of a residence pursuant to OAR 813-300-0120 (Account Holder Use of Funds)(2)(d) above, appropriate account moneys may be used to pay any usual or reasonable settlement, financing or other closing costs with respect to such residence.(7)
Account holders may not use IDA deposits to purchase a primary residence if they have owned or held any interest in a residence during the three years prior to making the purchase for which they intend to use IDA deposits. This three year restriction shall not apply in the following:(a)
For displaced homemakers or other individuals who have lost homeownership as a result of divorce.(b)
For a tribal member who has an interest in trust land and still has rights to an allotment under the Dawes Act Public Law 280 and amended in 1891, the 1906 Burke Act and the 1910 Omnibus Act Statutes at Large 24, 388-91, NADP Document A1887, but the tribal member faces multiple ownership of his or her land status and cannot successfully achieve sole ownership in order to receive any equity or collateral from that allotment. If the tribal member solely owns a residence on land known as an allotment and has successfully received sole ownership including the receipt of title status report (TSR) through the Bureau of Indian Affairs, they may not use IDA deposits to purchase a primary residence. If the person can receive more than $2500 in equity or collateral of their allotment, the value over $2500 shall be included in their asset limit.(c)
For owners of manufactured homes.(8)
In capitalizing a small business pursuant to OAR 813-300-0120 (Account Holder Use of Funds)(2)(c) above, IDA deposits may be used for capital, plant, equipment and inventory expenses, to hire employees, and for working capital pursuant to a business plan approved by the fiduciary organization. To qualify for fiduciary organization approval, the business plan must have been developed by a financial institution, a nonprofit micro enterprise program or other qualified agent demonstrating business expertise. The business plan also must include a description of the services or goods to be sold, a marketing plan and projected financial statements.(9)
Account holders must repay moneys improperly taken from IDA deposits including the interest earned thereon, when required by their fiduciary organization or by the department.
Source:
Rule 813-300-0120 — Account Holder Use of Funds, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-300-0120.