Florida Attorney General Pam
Bondi announced Friday that her
office has reached a deal with the Florida Legislature over how to use $300
million in foreclosure settlement money that has sat dormant since March amidst negotiations over spending authority.
One-fifth of the money, about $60 million, could be approved in the coming weeks for programs
like down-payment assistance, legal counseling for foreclosures and initiatives to help deal with the backlog of foreclosures in state court.
The state Legislature will decide how to spend $200 million
of the total during the next legislative session, meaning it will be spent after May. According to the
agreement, that money will go to “housing-related” initiatives, a broad term
that could include "foreclosure prevention, neighborhood revitalization, affordable housing, homebuyer or renter assistance, legal assistance, counseling and other housing-related programs."
It also allows an additional $40 million to go to state
coffers as a “civil penalty”, adding to the $33 million that has already been sent to the state treasury.
The deal was announced by Bondi, Speaker-designate Will Weatherford and incoming Senate President Don Gaetz.
Bondi originally argued that she had the authority to spend
the foreclosure-settlement cash, while legislative leaders pointed out that
they are legally authorized to appropriate funds.
As the two groups negotiated, the money sat in an escrow account, while other states began putting
their portion of the settlement to use. As of last month, Florida was the only state that had yet to announce
how it would use the money.
Meanwhile, Florida
recently became the state with the highest foreclosure rate in the country. The
$300 million cash payment came in addition to more than $8 billion in mortgage
assistance that Floridians were set to receive directly from banks as part of
the national $25 billion settlement.
Other states have come under fire from consumer advocates for
using money from the national mortgage settlement for issues not related to the housing
crisis.
Though Bondi has repeatedly stated that she wanted the money to go directly to housing-related issues, it was not clear if the Legislature would sign on to that.
"This plan gets much-needed assistance to the homeowners and
communities suffering the effects of the foreclosure crisis,
and ensures that the settlement funds are spent with the transparency,
accountability and flexibility that comes from the legislative
process,” Bondi said in a statement. “I thank President-designate Gaetz and Speaker-designate
Weatherford for working together with me to implement the mortgage
settlement in a way that’s in the best interests of our state.”
Added Gaetz: “I am grateful to Attorney General Bondi and
Speaker-designate Weatherford for working with us on a proposal which
ensures that these funds are appropriated by the legislature in a transparent
and accountable manner,” said Gaetz, R-Niceville. “Together with the approximately $7.5 billion in relief that will go
directly to homeowners, this funding will play an important role in the
multitude of state and federal efforts to provide relief for homeowners
facing foreclosure.”
See the full press release below: