Section 457-315-9 - Eligible Uses of Family Development AccountsA. The account holder must obtain approval of the community development organization administering the account for each withdrawal.B. Account holders may make withdrawals from accounts without penalty for each of the following: (1) Expenses for education or job training or to attend an accredited or approved postsecondary education or training institution;(2) The purchase of a home which is or will be used as the account holder's principal residence and which home is in compliance with standards set by the CDO approving the withdrawal;(3) The repair of the account holder's principal residence;(4) The purchase or repair of a vehicle used for transportation to work or to attend an education or training program;(5) Expenses for an emergency that may cause the loss of shelter, employment or other basic necessities;(6) Capital to start a small business for any family member who is 18 years of age or older; or(7) Health care costs exceeding $500 not covered by public or private insurance.C. Money withdrawn from any account by an account holder without obtaining the cosignature of the administrator of the community development organization or money withdrawn for an ineligible purpose, is subject to a penalty of 15%. When a penalty is assessed the account holder must be paid the funds that the account holder deposited less the penalty, plus interest on that amount. All matching contribution deposits and the interest on them are forfeited. All penalties and forfeited funds must be paid into the family development account reserve fund of the community development organization.94- 457 C.M.R. ch. 315, § 9