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Turnkey III Homeownership Opportunities for Indian Families

This program enabled Indian Housing Authorities (IHAs) to help low-income families purchase a home. IHAs competed for funds through an annual Notice of Funding Availability (NOFA). HUD awarded funds to the IHA, which then selected program participants based on waiting lists.
This program was designed to encourage self-sufficiency through homeownership. The housing units in this program were owned by the IHA. During the period of tenancy, the family made "mortgage" payments based on their income and maintained their own property.

Type of Assistance:
In Turnkey III, the IHA compensated the family by crediting certain amounts budgeted for maintenance to family equity accounts. A non-routine maintenance reserve was also established for each unit. When the family's income and equity accounts increased to the point where it could obtain permanent financing for the unit, or when the equity account equaled the unamortized debt and closing costs, ownership passed to the family. Turnkey homes were amortized over a 30-year period.

Eligible Grantees:
IHAs were eligible to apply for this program. Their plans were approved by the local governing body and demonstrated that they were responsive to local housing needs.

Eligible Customers:
Those low-income Indian families who could buy their own home were the beneficiaries of this program.

Eligible Activities:
Payments to IHAs could then cover debt service or direct funding of capital costs. No operating subsidies were available for administrative overhead, but they were available to cover IHAs training, counseling, collection losses, repair of vacant units, and unusual circumstances.

This program is no longer funded.

Funding Status:
HUD is no longer accepting new applications for the development of Turnkey III units. Approximately 803 Turnkey III units were under management as of September 30, 1996.

Technical Guidance:
Turnkey III was authorized by the Housing Act of 1937, as amended, P. L. 75-412, 42 U.S.C. 1401-1435. Regulations were found in 24 CFR 950. The program is administered by the Office of Public and Indian Housing.

For More Information:
The primary sources of information on Doctoral Dissertation Research Additional information is available at the National Office of Native American Programs in Denver, CO. Contact Deborah Lalancette, telephone (303) 675-1600. Or contact the Area Offices of Native American Programs in Albuquerque, Anchorage, Chicago, Denver, Oklahoma City, Phoenix, and Seattle.