Governor Crist Announces $11.5 Million to Help Florida Homeowners

TALLAHASSEE – Governor Charlie Crist today announced that Florida has received nearly $11.5 million to continue providing statewide foreclosure prevention counseling and legal assistance to homeowners in foreclosure. The boost will enable 77 counseling agencies and organizations across the state to provide foreclosure counseling. The funds also will allow legal services groups to counsel area homeowners at risk of foreclosure.

“These dollars will go a long way toward helping Floridians stay in their homes, and we are grateful to the federal government,” said Governor Charlie Crist. “By working together, Florida and Washington, D.C., are providing the advice and counsel to help residents here in the Sunshine State retain the dream of home ownership.”

The grant to support Florida’s foreclosure counseling intervention efforts comes from funds provided through the Housing and Economic Recover Act approved by Congress in July of 2008. Congress appropriated $180 million to be distributed nationally through a competitive application process administered by NeighborWorks® America, within guidelines defined by federal legislation. NeighborWorks America is an independent, congressionally-chartered, non-profit organization based in Washington, D.C., that provides access to homeownership and affordable rental housing. In March 2008, Florida received nearly $1.3 million to support statewide foreclosure prevention counseling efforts. Those funds enabled approximately 50 counseling agencies/organizations to provide more foreclosure counseling than ever before to homeowners in danger of foreclosure.

The federal dollars for Florida come as Governor Crist and his administration continue working to help Florida homeowners. According to RealtyTrac, Florida has the nation’s third-highest state foreclosure rate, with 166,600 households statewide being impacted by foreclosure activities in October 2008.

Earlier this month Governor Crist joined representatives of the banking and mortgage lending industry to announce a voluntary agreement to provide foreclosure relief to Florida homestead property owners for 45 day, through the holidays and New Year. Also, the Florida Department of Community Affairs recently submitted to the United States Department of Housing and Urban Development (HUD) its proposed plan for distributing $91.1 million in federal funds to smaller urban and rural communities to respond to rising foreclosures and falling home values. In September 2008, HUD announced that targeted Florida cities and counties would receive $541 million in federal Community Development Block Grant (CDBG) funds for this purpose.

In February 2008, Governor Crist created the Florida Home Ownership Promotes the Economy (HOPE) Task Force to review Florida’s foreclosure rate and its impact on Florida’s economy. In April, the task force submitted recommendations, including urging loan services and investors to pursue all workout options and to dedicate resources to foreclosure prevention. To learn more about foreclosure prevention resources, please visit www.FloridaHousing.org and click on “Foreclosure Prevention Resources Now Available!”

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