CFO SINK’S “FINANCIAL ACTION TEAM”

Sink called upon the broad coalition last month to review federal foreclosure assistance legislation

Chief Financial Officer Sink chaired the first workshop of her Financial Action Team on Thursday, September 4 and took reports from more than a dozen participants on the recently passed federal Housing and Economic Recovery Act of 2008. During the half day workshop, representatives of the Department of Veterans’ Affairs, the banking and credit union industry, mortgage brokers and lenders, realtors, financial planners, cities and counties, affordable housing groups and legal services organizations discussed the key provisions of the new law that will provide housing relief to Floridians.

The FACT Team discussed ways for Florida to take advantage of the billions of dollars in federal aid to persons with distressed mortgages, veterans, local governments and non-profit affordable housing groups. Some of the provisions, such as a tax credit for new homebuyers, are in effect now, and other provisions will go into effect later this year and in 2009.
The new law provides relief to veterans who are facing foreclosure by extending the foreclosure process, freezing mortgage rates, and providing assistance to veterans who are displaced from a rental property because of a foreclosure. The law also provides assistance to disabled veterans who need to modify their homes in order to remain in them.

The law sets aside nearly $4 billion for local governments to use to renovate and maintain foreclosed-upon properties so that they can be made ready for new residents, and creates a $7,500 credit on federal income tax for persons who are recent homebuyers. It also provides for a guarantee of up to $300 billion in refinanced loans for homeowners who are having difficulty making their mortgage payments.

CFO Sink plans for the FACT Team to meet again this month to prepare a comprehensive outreach and education program to get the word out to all Floridians who might benefit from the new law, and is looking forward to working with Admiral LeRoy Collins of the Department of Veterans Affairs to ensure that veterans are provided with the relief and benefits that they have earned. CFO Sink's goal is to help Florida’s housing economy - the key driver of our state’s economic condition – move in the right direction to protect the American Dream for all Floridians.