While the US Congress put its financial bailout bill in place, the state of Florida was also working to help take the sting out of the economic problems that have hit the state and its real estate industry. Governor Charlie Crist recently signed an executive order that opens up $571 million in state-backed financing that developers and buyers of real estate can access.
The hope is that developers will start building new homes and apartments soon, and that reluctant buyers will purchase them. The money that the state will provide will be available to provide property developers a line of relatively cheap credit. Additionally, home buyers can use the state backed financing to get low interest loans through the Florida Housing Finance Corporation.
Governor Christ’s office released a statement about the money and the Florida Housing Finance Corporation, saying that “The people of Florida are having a hard time getting loans. This is a place where they can get loans at a lower rate.”
In addition to the money available from the state, the federal government is providing funds to local governments as part of the Housing and Economic Recovery Act passed last summer. Some $541 million will come to the state through this fund which will be used to purchase foreclosed properties and rehabilitate them. Money will also be used for low and moderate income buyers for down payments and closing costs associated with buying a new home.
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