D.C. Mun. Regs. tit. 26, r. 26-C2106

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-C2106 - WITHDRAWALS FROM OPPORTUNITY ACCOUNTS

2106.1

Withdrawals from opportunity accounts for purposes which are not permitted under the Act, these rules, or approved by the administering organization, shall, at a minimum, result in a reduction of the match made available to the participant in the match ratio. In addition, unless the withdrawal qualifies under subsection 2106.3:

(a) The account holder shall lose his or her matching funds and the matching funds shall be returned to the administering organization for use by other account holders or to the District of Columbia as the Office directs;

(b) The account holder shall be removed from the opportunity account program; and

(c) All funds deposited by the account holder into the opportunity account, plus interest earned on that amount, shall be returned to the account holder within thirty (30) days.

2106.2

An account holder may make an emergency withdrawal of his or her opportunity account funds without resulting in removal from the program in accordance with subsection 2106.3.

2106.3

An account holder may make an emergency withdrawal in the following circumstances:

(a) To pay the costs of medical care or the expenses necessary to obtain medical care for the account holder or a spouse, domestic partner, father, mother, child, or dependent of the account holder;

(b) To make a payment necessary to prevent the eviction of the account holder from the primary residence of the account holder or prevent foreclosure on a mortgage for the primary residence of the account holder; or

(c) To make payments necessary to enable the account holder to meet necessary living expenses following loss of employment.

2106.4

Except as provided in subsection 2106.5, an account holder making an emergency withdrawal shall only withdraw funds deposited by the account holder plus interest on those funds and shall not withdraw or have any right to withdraw matching funds.

2106.5

Account holders saving in medical emergency opportunity accounts may withdraw matching funds if the medical emergency is a permitted and approved use.

2106.6

An emergency withdrawal shall not be made unless authorized by an administering organization.

2106.7

An account holder shall deposit funds into the opportunity account in the same amount as the funds withdrawn from the account for the emergency withdrawal no later than twelve (12) months after the date of the withdrawal. If the account holder fails to redeposit the funds as required by this section, the account holder shall:

(a) Lose his or her matching funds and the matching funds shall be returned to the administering organization in the same amount as the matching funds were provided or solely to the administering organization for use by other account holders or to the District of Columbia as the Office directs;

(b) Be removed from the opportunity account program; and

(c) Receive all funds deposited by the account holder into the opportunity account, plus interest.

2106.8

Notwithstanding the provisions of this section, if the administering organization finds that extenuating circumstances of the account holder and the unapproved withdrawal justify retaining the account holder in the program, the administering organization may request, in writing, a waiver of the requirement that the account holder be removed from the program from the Office. The Office may grant such a waiver if it is consistent with the purpose of the Act to assist low-income families to purchase assets that will contribute to self-sufficiency. The Office may impose probationary terms and conditions to the waiver.

D.C. Mun. Regs. tit. 26, r. 26-C2106

Final Rulemaking published at 49 DCR 4983, 4991-4992 (May 31 2002)