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Home program's formula faulted

Tribune file photo (2008)

An advocacy agency says because the aid will be distributed based on per-capita and not on need, some areas will not get as much aid as others.

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By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: June 11, 2009

TALLAHASSEE - First-time homebuyers may not get all of the down-payment assistance that state lawmakers set aside for them this spring, a consumer advocacy group said Wednesday.

The state budget that Gov. Charlie Crist signed last month includes $30 million to create the Florida Homebuyer Opportunity Program.

First proposed by state Sen. Mike Fasano, R-New Port Richey, the program will allow first-time homebuyers to turn a new federal tax credit worth up to $8,000 into upfront cash for a down payment.

The federal tax-credit program, which expires Dec. 1, is part of the federal government's economic stimulus program.

Walter Dartland, director of the Consumer Federation of the Southeast, applauds Florida's new program to leverage the federal tax credits. But he argues that the state's plan for implementing it could keep some of the money out of the hands of homebuyers.

The legislation directs the Florida Housing Finance Corp. to distribute money for the program to local cities and counties in the State Housing Initiatives Partnership, known as SHIP.

Local SHIP entities will advance the down-payment assistance to qualifying homebuyers in amounts equivalent to the tax credit the federal government will award them at tax time in 2010. The homebuyer must pay back the loan after receiving the tax credit.

Dartland wants the Florida Housing Finance Corp. to distribute the down-payment assistance based on need. But the agency plans to use a standard SHIP formula for distributing money across the state on a per-capita basis. Dartland thinks that will mean that some cities and counties will receive more than they can use, while others will not receive enough.

When the federal program expires, unspent money earmarked for the Florida Homebuyer Opportunity Program will revert to SHIP, which provides assistance to low-income households.

"We have a small window of opportunity to make this huge boost to our economy available statewide," said Dartland, who fears that too much will be left unspent on Dec. 1.

Wellington Meffert, general counsel for the Florida Housing Finance Corp., said that Dartland has a legitimate concern. But lawmakers explicitly required the agency to use the SHIP per-capita formula to distribute the money, Meffert said. "We don't get to pick and choose which laws we obey."

Fasano said the agency is carrying out lawmakers' intent

"Mr. Dartland makes a good point; I've heard the same concern from others around the state," the senator said. But he and other lawmakers agreed to use the standard SHIP formula to keep the new program simple. That, he said, was part of the strategy for persuading House leaders to pass the legislation.

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