LONGVIEW — Tamy Gonzales never dreamed she’d be a homeowner. Richelle Ellison never dreamed she’d own a computer to help with her college education. But both Longview women were able to realize their goals by participating in program that turns debtors into savers.

Gonzales was and Ellison is a participant in the Individual Development Account program through Lower Columbia CAP, a social service agency in Cowlitz County. Individual development accounts are special matched savings accounts to help low-income families and individuals establish a pattern of regular saving. Participants can use their savings and matched funds toward a home, start a small business or college or vocational school.

Gonzales, a single mother of three, had gone to the Longview Housing Authority about 1998 for help with housing. Meanwhile, she began to work on cleaning up her credit and paying off bills in preparation for buying a home, which took five years.

“The reason I went to IDA was because I didn’t have a down payment,” said Gonzales, 42, who has worked as an in-home caregiver for 10 years.

Potential homeowners must save $2,000 toward their down payment. Federal and state funds match an additional $4,000. It took Gonzales about 11/2 years to save her portion.

“I had to deposit $80 per month into my account,” she said. “I also added a couple larger amounts, like my tax return.”

She only dipped into her savings one time before she had the required $2,000 and that was to buy school clothes for her sons. “And I paid it back as soon as I could.”

Her regular trips to the bank had an unexpected result: a more respectful attitude from bank personnel and a loan officer willing to give her a chance.

“Tamy was one of those who had a $5 savings account so she could cash her paycheck,” said Liz Myntti, who runs the savings program. “With her diligence about putting money into her IDA, the bank said, ‘We can see you are responsible and serious about this.’ As it was, they approached her about applying for a loan.”

“The bank gave me an appraisal of what I could afford to pay,” Gonzales said. She qualified for $105,000, and in May 2004, working through a real estate agent, she found a three-bedroom home for her and her three teenage sons.

“I couldn’t believe that I found a house within the budget they gave me,” she said. “I still couldn’t believe it was my house until I signed at the title company.”

The state has had individual development accounts since 2001, Myntti said. “Every year, we go to the Legislature and tell them of the success stories like Tamy’s and the long-term benefits for low-income people. They’ve given us $1 million every two years, which is divided among 11 IDA programs statewide. Locally, we get $90,000 every two years and we anticipate to be re-funded at the same level in 2009.”

Most state individual development accounts match one-for-one, but the Longview-area program is one of four individual development account services in Washington to access federal funds, As a result, its individual development account dollars are matched two-for-one. The matching funds are paid directly to the financial institution, college or vendor and not to the participant, Myntti said.

People have to save in their individual development accounts for six consecutive months minimum before they can get matching dollars; such was the case for Ellison, who has had an account since January.

“I’m using it for education,” said Ellison, 52, a junior at WSU Vancouver majoring in human development and family therapy. “I had $300 in my savings and they matched $600 so I could pay off my computer. So, I’m at zero again in my IDA, but I have 28 months (of eligibility) left. The computer was a blessing. You have to have a computer to be a student.”

Ellison said she’s been married and divorced four times, has been to jail and prison on drug-related charges, has struggled with alcohol and drug abuse and readily admits she made poor choices along the way. She currently is in Drug Court, where she will graduate in October, and is “serving the Lord.” She’s been clean and sober since May 14, 2007.

She credits the discipline of the individual development account program as part of her recovery. “You have to be accountable,” she said. “The best thing about the program is teaching me the value of savings, which I’ve always known, but wasn’t always able to do.”

Ellison receives assistance for housing and has also qualified for federal student aid for school. She must fill out a application for student aid each school year to determine how much she’s eligible for.

She said she’ll get about $9,000 in grants and loans when school begins Monday. “About half goes to tuition, books. The rest is for living expenses. I divide that up for the months of the semester and make sure I put $55 into my IDA each month.”

For education, the individual development account allows withdrawal in increments. “Next September I’ll have $500, and IDA will match with $1,000, so I don’t have to take out so much in student loans. I’m trying to keep loans around $10,000 by the time I graduate with my bachelor’s in December 2009,” Ellison said.

Gonzales and Ellison said they are thankful for the programs, such as individual development accounts, that are helping them change their lives.

“People just think, oh they’re just low-income people. They don’t deserve nothing,” Gonzales said. “If it wasn’t for the group of people who had faith in me, (buying a house) wouldn’t have been possible,” she said.

“I’m getting on my feet, stepping up. I say, just give us a chance.”