Governor's Press Office Release:

TALLAHASSEE – Governor Charlie Crist today praised more than $1 billion in federal support for Florida’s housing market, made possible by the federal Housing and Economic Recovery Act of 2008 passed by Congress this summer. He also announced that Standard &Poor's has affirmed a "AAA" rating with a stable outlook to Florida’s general obligation bonds.

"I commend Florida's Congressional delegation for fighting for Florida's fair share of funding and support. Local communities will receive cash to purchase foreclosed homes. Developers of affordable housing will have increased capacity to sell tax-exempt bonds to finance these ventures, and first time home buyers will have increased resources available to them," Governor Crist said. "In addition, yesterday's S&P bond rating confirms that we have been managing prudently and responsibly by taking timely and appropriate action to balance the state budget. All three are good news for Florida's economy."

The federal support for Florida's housing market comes in two forms. First, an additional $571 million in tax-exempt bond capacity will allow developers to acquire or rehabilitate affordable housing. The bonds will also make funds available for lower interest first-mortgage loans to first-time home buyers with low and moderate incomes, and will leverage state-funded down payment assistance programs. To make the bonds available, Governor Crist signed Executive Order 08-210 directing the Division of Bond Finance to allocate the tax-exempt bond capacity to the Florida Housing Finance Corporation and local housing agencies, which will administer the programs.

The second form of federal support provides funds to assist Florida communities hardest hit by the national housing crisis. Announced earlier this week, $541 million in federal Community Development Block Grant (CDBG) funds will be used within local communities to purchase foreclosed homes at a discount, to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values, and to promote other community stabilizing activities. The Florida Department of Community Affairs is the lead agency responsible for administering the CDBG program.

Additionally, Standard & Poor’s (S&P) confirmed Florida’s "AAA" rating with a stable outlook and gave the State of Florida high marks for its financial management. The annual review stated that Florida’s economy maintains a strong and competitive position in the Southeast. The S&P “AAA” rating demonstrates that the State of Florida remains financially sound despite the challenges presented by the real estate market and the economy.

Joining Governor Crist at the Mansion for today’s announcement were Secretary Tom Pelham of the Department of Community Affairs; Steve Auger, executive director of the Florida Housing Finance Corporation; General Bob Milligan, interim executive director of the State Board of Administration; and Ben Watkins, director of the Division of Bond Finance.