$260 Million to be Set Aside by Lawmakers for Homeowner Relief Says Florida AG

Early last month, state officials announced that Florida Attorney General Pam Bondi has entered into an understanding with the leaders of the Florida Legislature to use $260 million of the national mortgage settlement from big banks to provide relief to homeowners in distress. Bondi said $60 million will be directly used for down payment assistance, foreclosure-related legal assistance, improving case flow in state courts and for enforcement efforts by her office. The balance of $200 million will be appropriated for foreclosure prevention, neighborhood revitalization, affordable housing, home buyer or renter assistance, legal assistance, counseling and other housing-related programs of the state. The Legislature though will have the final say on which agencies get to distribute those funds to the intended beneficiaries.

December 12, 2012

The $260 million came from the proceeds of the $25 billion nationwide settlement between forty-nine state attorneys general throughout the country and Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial/GMAC which have all been accused of filing foreclosure lawsuits with faulty information. Bondi’s office helped secure $8.4 billion of the $25 billion for Florida. In a press statement, she said, “Florida was one of only two states in the country that negotiated a guarantee in the settlement. The fact that services report $3.6 billion in relief to Florida’s borrowers within the first eight months of implementation is a promising indication that obtaining a minimum commitment from the banks has been effective.”

Most of $8.4 billion though has been allocated by the banks themselves directly to the affected borrowers for such ends as loan modifications and direct payments. A lump sum of $334 million was set aside for Florida authorities to decide how to use.

Of the $334 million at the discretion of state authorities, Bondi agreed with Florida Senate President-designate Don Gaetz (R-Niceville) and Florida House Speaker-designate Will Weatherford (R-Wesley Chapel) that $74 million shall go to the general fund revenue, meaning it can be used for any purpose including non-housing related concerns of government. The rest of the money, as then agreed, will be dedicated to funding programs meant to help distressed homeowners in Florida.

The deal which the attorney general struck with incoming Senate President Don Gaetz and House Speaker-designate Will Weatherford calls for the legislature to “support the appropriation” of the $260 million for housing-related programs. In a press statement, Bondi said that her agreement with lawmakers “ensures that the settlement funds are spent with the transparency, accountability and flexibility that comes from the legislative process.”