Florida is in its deepest housing slump since the Great Depression. There are more than 300,000 housing units for sale – an alarming 22-month supply. With one in every 22 homes receiving at least one foreclosure filing in 2008, Florida has the second highest foreclosure rate in the nation. Additionally, one in every four homeowners is upside down in their mortgage. Unemployment rates are skyrocketing and the situation is likely to get worse before it gets better.
The Florida Legislature can take policy steps to reverse these trends. First, fully repay the $250 million sweep of the Sadowski Affordable Housing Trust Fund from 2008, and the $190 million sweep from the January 2009 Special Session. By replenishing these funds, lawmakers can maximize the state’s ability to help families and senior citizens with down payment assistance. This not only helps to fulfill the American dream of homeownership, it will help reduce the over supply of homes currently on the market.
Additionally, the Florida Legislature should join the Florida Home Builders Association in urging Florida’s Congressional Delegation to support an increase to the federal tax credit and lower mortgage rates to enable families to buy homes and help strengthen the economy of local communities and the nation.
May 27, 2009 – Gov. Crist signed the budget into law which contained a $30 million housing stimulus advancing the $8,000 Federal first-time home buyers tax credit.
Week of May 4 – The Florida Legislature has allocated $30 million for first-time home buyers. These dollars will monetize the $8,000 first-time home buyer Federal tax credit. While the funds come from the documentary stamp taxes associated with the Sadowski Affordable Housing Act, the requirements to access the funds follow Federal guidelines. General guidelines include income limits ($75,000 single/$150,000 couple), and loans cannot exceed 10 percent of purchase price or $8,000, whichever is less.
Week of April 27 – While this needs the approval of both the House and Senate later week (May 4) when they vote on the budget, lawmakers have agreed to $24 million in down payment assistance tied to the new $8,000 Federal tax credit.