Sacrificial poor

Wealth and Poverty | Individual Development Accounts and a will to save are teaching Houston's poor how to be rich | Mindy Belz

Nathan Lindstrom/Genesis Photos for World

HOUSTON—Delores McGruder is a drop of success in an ocean of failure. The 61-year-old widow from one of Houston's poorest neighborhoods bought her own home on Dec. 6, 2002. On Feb. 12, 2009, she paid it off.

McGruder carries the dates in her head the same as she carries photos of her grandchildren in her pocket. They mark an accomplishment that's noteworthy not only in low-income areas but across America—as 1.5 million homeowners in low-, middle-, and high-income brackets have faced foreclosures in the last 11 months, and another 3 million are expected to this year.

McGruder bought her home by opening an Individual Development Account (IDA). IDAs match monthly family savings with public-private funds toward purchase of a home, a small business, or education—all asset-building pursuits typically reserved for those in wealthier tax brackets who typically receive thousands of dollars in tax benefits for such investments. IDAs are increasingly touted by groups such as the Poverty Forum as a way to build responsible home ownership—and at far less cost than the $75 billion housing bailout announced by President Barack Obama on Feb. 18.