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GOVERNOR CRIST COMMENDS $1 BILLION IN FEDERAL SUPPORT FOR HOUSING MARKET AND CONFIRMATION OF FLORIDA'S "AAA" BOND RATING

~~ ~Standard & Poor’s confirms Florida’s strong and conservative fiscal management ~ ~~

October 2, 2008

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GOVERNOR’S PRESS OFFICE
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TALLAHASSEE – Governor Charlie Crist today praised more than $1 billion in federal support for Florida’s housing market, made possible by the federal Housing and Economic Recovery Act of 2008 passed by Congress this summer. He also announced that Standard &Poor’s has affirmed a “AAA” rating with a stable outlook to Florida’s general obligation bonds.

“I commend Florida’s Congressional delegation for fighting for Florida’s fair share of funding and support. Local communities will receive cash to purchase foreclosed homes. Developers of affordable housing will have increased capacity to sell tax-exempt bonds to finance these ventures, and first time home buyers will have increased resources available to them,” Governor Crist said. “In addition, yesterday’s S&P bond rating confirms that we have been managing prudently and responsibly by taking timely and appropriate action to balance the state budget. All three are good news for Florida’s economy.”

The federal support for Florida’s housing market comes in two forms. First, an additional $571 million in tax-exempt bond capacity will allow developers to acquire or rehabilitate affordable housing. The bonds will also make funds available for lower interest first-mortgage loans to first-time home buyers with low and moderate incomes, and will leverage state-funded down payment assistance programs. To make the bonds available, Governor Crist signed Executive Order 08-210 directing the Division of Bond Finance to allocate the tax-exempt bond capacity to the Florida Housing Finance Corporation and local housing agencies, which will administer the programs.

The second form of federal support provides funds to assist Florida communities hardest hit by the national housing crisis. Announced earlier this week, $541 million in federal Community Development Block Grant (CDBG) funds will be used within local communities to purchase foreclosed homes at a discount, to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values, and to promote other community stabilizing activities. The Florida Department of Community Affairs is the lead agency responsible for administering the CDBG program.

Additionally, Standard & Poor’s (S&P) confirmed Florida’s “AAA” rating with a stable outlook and gave the State of Florida high marks for its financial management. The annual review stated that Florida’s economy maintains a strong and competitive position in the Southeast. The S&P “AAA” rating demonstrates that the State of Florida remains financially sound despite the challenges presented by the real estate market and the economy.

Joining Governor Crist at the Mansion for today’s announcement were Secretary Tom Pelham of the Department of Community Affairs; Steve Auger, executive director of the Florida Housing Finance Corporation; General Bob Milligan, interim executive director of the State Board of Administration; and Ben Watkins, director of the Division of Bond Finance.

STATE OF FLORIDA
OFFICE OF THE GOVERNOR
EXECUTIVE ORDER NUMBER 08-210

WHEREAS, the United States Congress, through passage of the Housing and Economic Recovery Act of 2008, Public Law 110-289, has temporarily increased the private activity bond volume cap for qualified housing bonds under section 146 of the Internal Revenue Code of 1986, as amended; and

WHEREAS, Public Law 110-289 does not specify the manner in which the temporary increase in private activity bond volume cap is to be allocated to issuers of qualified housing bonds within each state; and

WHEREAS, the Florida Private Activity Bond Allocation Act, Chapter 159, Part VI, Florida Statutes, as amended (the “State Allocation Act”), which governs the allocation of the private activity bond volume cap in the State of Florida, was not designed to address a temporary increase in private activity bond volume cap; and

WHEREAS, the issuance of private activity bonds for qualified housing is of great importance to the State of Florida, its agencies and its local governments;

NOW, THEREFORE, I, CHARLIE CRIST, as Governor of the State of Florida and by virtue of the authority vested in me by the Constitution and Laws of the State of Florida, more specifically section 159.813, Florida Statutes, as amended, and consistent with the provisions of section 146(e)(2) of the Internal Revenue Code of 1986, as amended, do hereby promulgate this Executive Order:

Section 1.

The purpose of this Executive Order shall be to allocate the temporary increase in statewide private activity bond volume cap for qualified housing bonds (“Florida’s 2008 Supplemental Volume Cap”) authorized by Public Law 110-289.

The provisions of the State Allocation Act governing the allocation of private activity bond volume cap and the procedural rules promulgated thereunder (Chapter 19A-4, Florida Administrative Code), to the extent not inconsistent herewith, shall govern the allocation of Florida’s 2008 Supplemental Volume Cap.

Section 2.

The Division of Bond Finance shall administer the provisions of this Executive Order. The Director of the Division of Bond Finance shall have the authority to take all actions necessary to comply with the provisions of this Executive Order.

Section 3.

The Division of Bond Finance shall determine the amount of Florida’s 2008 Supplemental Volume Cap in accordance with Public Law 110-289 and the Internal Revenue Code of 1986, as amended, and shall make such information available upon request.

Section 4.

(A) When granting applications for private activity bond volume cap for qualified residential rental projects, as such term is defined in the Internal Revenue Code of 1986, as amended, the Division of Bond Finance shall first utilize Florida’s 2008 Supplemental Volume Cap, if available.

(B)(1) Applicants for private activity bond volume cap for qualified mortgage bonds shall elect whether to receive an allocation of volume cap from the state allocation pool pursuant to Section 159.807, Florida Statutes, or from Florida’s 2008 Supplemental Volume Cap. Such election may not be revised unless the application is cancelled and a new application is submitted.

(2) The ten percent limitation on supplemental applications found in section 159.805(7), Florida Statutes, shall not apply to applications for Florida’s 2008 Supplemental Volume Cap for the purpose of issuing qualified mortgage bonds.

Section 5.

Florida’s 2008 Supplemental Volume Cap shall be allocated as follows:

(A)(1) Such private activity bond volume cap shall first be allocated to the issuers of qualified housing bonds, including the Florida Housing Finance Corporation, which have previously applied to the Division of Bond Finance for private activity bond volume cap under the State Allocation Act but for which no private activity bond volume cap is available, in the order established by the State Allocation Act and the rules of the Division of Bond Finance.

(2) Issuers of qualified mortgage bonds which have previously applied to the Division of Bond Finance for private activity bond volume cap under the State Allocation Act, but for which no private activity bond volume cap is available, shall make the election set forth in and pursuant to the provisions of paragraph 4(B)(1) of this Executive Order. If no such election is made within five business days of the effective date of this Executive Order, the Division of Bond Finance shall utilize the state allocation pool to provide the requested volume cap, when and if available.

(B) The remainder of such private activity bond volume cap shall be divided and allocated as follows:

(1) Thirty-three and one-third percent (33⅓%) shall be allocated to the Florida Housing Finance Corporation for use in connection with the issuance of qualified housing bonds of the Florida Housing Finance Corporation. The Florida Housing Finance Corporation need not apply to the Division of Bond Finance for an allocation of private activity bond volume cap granted under this paragraph for bonds it issues on or before December 29, 2008.

(2) (a) Sixty-six and two-thirds percent (66⅔%) shall be divided among the regions established pursuant to Section 159.804(2)(b), Florida Statutes, in the manner provided for in such section, for use by all agencies within each region on a first-come, first-served basis, as generally provided for in section 159.805(1), Florida Statutes.

(b) Applications for Florida’s 2008 Supplemental Volume Cap shall be made on the form currently used by the Division of Bond Finance for the allocation of private activity bond volume cap. The election required by paragraph 4(B)(1) of this Executive Order may be indicated on the form or in a cover letter accompanying the form.

© Applications for Florida’s 2008 Supplemental Volume Cap will only be accepted by the Division of Bond Finance on or after the effective date of this Executive Order.

(d) Bonds utilizing private activity bond volume cap granted pursuant to sub-paragraph 5(B)(2)(a) of this Executive Order must be issued on or before December 15, 2008, or the Division of Bond Finance must have received a request to carryforward such private activity bond volume cap for use in calendar years 2009 or 2010, which requests will be accepted by the Division of Bond Finance at any time on or before December 15, 2008.

(e)(i) On December 16, 2008, any private activity bond volume cap granted pursuant to sub-paragraph 5(B)(2)(a) of this Executive Order which has not been used to issue bonds, as evidenced by the receipt by the Division of Bond Finance of an issuance report, or for which a carryforward request to the Division of Bond Finance has not been made, shall be reallocated to issuers of qualified housing bonds, other than the Florida Housing Finance Corporation, and except for issuers who elected pursuant to paragraph 4(B)(1) of this Executive Order not to receive an allocation from Florida’s 2008 Supplemental Volume Cap, which have previously applied to the Division of Bond Finance for an allocation of private activity bond volume cap for qualified housing bonds, but which did not receive such private activity bond volume cap, on a first-come, first-served basis. No such reallocation shall be made unless the Division of Bond Finance has received a carryforward request for such allocation.

(ii) If there is any such private activity bond volume cap remaining after such reallocation, it shall then be reallocated to the Florida Housing Finance Corporation.

© (1) On or before December 29, 2008, the Florida Housing Finance Corporation must request carryforward from the Division of Bond Finance for any private activity bond volume cap granted to it pursuant to this Executive Order that it wishes to utilize to issue bonds in calendar years 2009 or 2010.

(2) On December 30, 2008, any private activity bond volume cap granted to the Florida Housing Finance Corporation pursuant to this Executive Order which has not been used by it to issue bonds, as evidenced by the receipt by the Division of Bond Finance of an issuance report, or for which the Division of Bond Finance has not received a carryforward request, shall be reallocated to issuers of qualified housing bonds, except for issuers who elected pursuant to paragraph 4(B)(1) of this Executive Order not to receive an allocation from Florida’s 2008 Supplemental Volume Cap, which have previously applied to the Division of Bond Finance for an allocation of private activity bond volume cap for qualified housing bonds, but which did not receive such private activity bond volume cap, on a first-come, first-served basis.

Section 6.

Private activity bond volume cap granted pursuant to this Executive Order may, to the extent permitted by federal law, be combined with the State’s original 2008 private activity bond volume cap, or with carryforward private activity bond volume cap, to issue qualified housing bonds.

Section 7.

The State’s original 2008 private activity bond volume cap shall be allocated and administered by the Division of Bond Finance pursuant to the State Allocation Act without regard to this Executive Order, except as specifically provided herein.

Section 8.

This Executive Order shall take effect immediately and will remain in effect until the earlier to occur of (A) the issuance of a superceding or amendatory Executive Order, or (B) the effective date of superceding legislation enacted to govern the allocation of Florida’s 2008 Supplemental Volume Cap.

IN TESTIMONY WHEREOF, I have hereunto set my hand and have caused the Great Seal of the State of Florida to be affixed, at Tallahassee, the Capitol, this 2nd day of October, 2008.

GOVERNOR

ATTEST:

SECRETARY OF STATE