FLORIDA COVID19 UPDATE: State To Tap $250 From CARES Act To Create Mortgage And Rental Assistance Fund
The ongoing Florida COVID19 pandemic has forced the state of Florida to create a rental and mortgage assistance fund. The state will create the fund from $250 million the state received from the federal CARES Act.
Governor DeSantis made the announcement last week.
DeSantis issued an executive order putting a moratorium on evictions and foreclosures in April. The moratorium is expected to end on Wednesday. The executive order gave homeowners and renters time in their homes if they can’t make their mortgage or rent payments due to the pandemic. However, it did not provide financial relief to renters and homeowners. As a result, Florida landlords were already lining up to evict people on July 1st before Memorial Day.
The Florida Housing Finance Corporation will administer a $120 million funding pool of $250 million. The fund will give short-term rental assistance for Covid-19 impacted households. However, funds are only available to those who live in FHFC’s portfolio.
Qualified renters would be able to tap the fund for rent between July and December, and may be able to secure assistance for payments that were due in April through June.
A separate $120 million fund will be for rental and homeowner assistance programs, including for new construction, rehabilitation, mortgage buydowns, down payment and closing cost assistance, emergency repairs, and financial assistance
d homeownership counseling for individuals impacted by the pandemic.
The Florida Housing Finance Corporation will set aside for operating costs of the assistance programs. FHFC will also set aside $200,000 for technical assistance to local municipalities.
Some cities within South Florida have rolled out similar programs, such as the city of Miami and Miami Beach. Miami Beach created a $550,000 rent relief fund in May, using state and federal money from three programs, including the CARE Act.