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SENATOR DARREN SOTODeputy Democratic Whip

14th District

THE FLORIDA SENATETallahassee, Florida 32399-1100 COMMITTEES:

Judiciary, Vice ChairAppropriations Subcommittee on Criminal and

Civil JusticeAppropriations Subcommittee on General GovernmCommunity AffairsEnvironmental Preservation and ConservationEthics and Elections

SELECT COMMITTEE:Select Committee on Patient Protection

and Affordable Care Act

REPLY TO: 220 Senate Office Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5014

Senates Website: www.flsenate.gov

DON GAETZ GARRETT RICHTER

President of the Senate President Pro Tempore

For Immediate Release: March 21, 2013

Contact: Christine Aleknavich, 850-487-5014Aleknavich.Christine@FLSenate.gov

Florida Housing Finance Corporations Newly Approved Program following Sotos Lead

TallahasseeAs legislation sponsored by Senator Darren Soto - intended to deliver long

overdue help to Florida homeowners struggling to fend off foreclosure - continues to languish inthe Republican-controlled legislature, the Florida Housing Finance Corporation is moving aheadwith a key component ofthe Orlando Democrats stonewalled bill.

Last week, the Florida Housing Finance Corporation board unanimously approved a pilotprogram that would include loans purchased in the Distressed Asset Stabilization Program(DASP). The program will begin in the Tampa Bay area and then expand to the Orlando andFt.Lauderdale/Miami area. If the program proves successful, the approved $50 million budgetwill be expanded and will also include other loans outside of the DASP sales.

While the new program launches on a limited basis, Senator Sotos billshould Republicans

ever allow it to proceed through the legislative processwould deliver similar relief todistressed homeowners statewide.

SB 1236 would create the Mortgage Principal Reduction Act requiring that the Florida HousingFinance Corporation apply to the United States Department of the Treasury to request funds notto exceed $100 million from the federal Hardest-Hit Fund program.

The Hardest Hit Program was established soon after the first election of President Barack Obamaand contained roughly $1 billion in relief for struggling homeowners throughout Florida. Thefund has remained largely ignored by state Republicans, however, just as theyve repeatedlyignored legislation sponsored by Democrats attempting to reverse Floridas appalling rank in the

nation as number one for home foreclosures.

In the case of Senator Sotos bill, his legislation would tap those federal funds to create a newstate program to reduce the principal on mortgages for Floridians whose homestead property inthis state is in foreclosure. Sotos bill would require the corporation to use the allocated funds to

mailto:Aleknavich.Christine@FLSenate.govmailto:Aleknavich.Christine@FLSenate.govmailto:Aleknavich.Christine@FLSenate.gov

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purchase delinquent mortgages on such property from lenders at a discount to reduce themortgage principal amount due on the mortgage.

I applaud the Florida Housing Finance Corporation for making a wise decision to assist Floridafamilies in saving their homes, said Senator Soto.The Republican leadership needs to follow

its lead and pass my bill to broaden the relief to homeowners facing foreclosure throughoutFlorida.

So far this legislative session, the only foreclosure-related bill which appears green-lighted forpassage is a Republican-sponsored measure accelerating bank home seizures by lessening courtoversight.

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