SB 1081 Summary

• Expands income eligibility for Individual Development Accounts from 80% to 100% of area median income for low- and moderate-income households.

• Adds rental housing costs, public transportation costs, motor vehicle purchase or repair costs, and qualified small business capitalization expenses as allowable qualified expenditures for account funds.

• Removes the "qualified principal residence" definition and simplifies homeownership eligibility by changing "first homeownership" to "first-time homeownership."

• Changes the fiduciary organization application process from competitive bidding to direct application to the Department of Human Services, and increases administrative cost allowance from 10% to 20% of state funds.

• Reactivates the Individual Development Account tax credit for the five-year period from January 1, 2020 through December 31, 2024, and modifies state matching fund mechanics to require fiduciary organizations to hold match funds separately.