Rural housing in Florida has reached its peak during the 20th century. This occurred because Florida has a strategic location as a tropical state and having the longest coastline compared to the other states. However, in 2008, Florida’s mortgage delinquency rate has dramatically raised causing widespread foreclosure of real property mortgages. The government through the US Department of Housing and Urban Development launched the Implementation and Recovery Act to avoid the downfall of the housing industry and to help homeowners in finding favorable deals and incentives on house rentals. This program along with other existing regulations on public housing features the following: Housing Choice Vouchers, Prohibition on Lease Increase and housing loans services under the Federal Housing Authority.
Housing Choice Vouchers
The US Department of Housing and Urban Development provides incentives to landowners by introducing the Housing Choice Vouchers program. This program is intended to help low-income families find affordable rentals on homes and apartments. To qualify for the program, the minimum income of the family must not exceed 50% of the median income of the county where they desires to live. Application for the program can be found in the Public Housing Authority (PHA). The PHA would then conduct an ocular inspection of the safety and sanitary condition of the house or apartment where the family’s applicant wishes to live. The applicant should also agree to pay the rentals based on the provisions of the program.
Prohibition on Lease Increase
The Senate specifically provided that no increase in the lease rate or inclusion of escalation clauses in the contract of lease of condominium units in Florida during the affectivity of the lease. This prohibition likewise applies if the declaration of the unit was recorded on file, on or after June 4, 1975. If the escalation provisions on the lease were recorded after June 4, 1975, the same is automatically rendered as void on the enactment of the amendments in the law. No increase based on this escalation clause has been effective after October 1, 1988 under the mandate of this prohibition. This provision is not effective against the government, to which the homeowner pays his rents. Today, unless the contract says otherwise, lease increase provisions are allowed. Also, if the contract was orally made, lease increase can become effective even if the same was not stipulated.
Federal Housing Authority
The Federal Housing Authority is a government insurer of mortgages in the United States. To qualify for the insurance, the applicant shout meet the requirements set forth by the FHA. The insurance covers single and multi-family homes. It also includes hospital loans. The lenders allowed to provide housing loans to homeowners should be accredited by the FHA. Under this program, the FHA will pay the loan once the homeowner defaulted.
1. HUD: PIH: Housing Choice Vouchers
2. 2010 Florida Statutes: Real and Personal Property: Condominiums
3. HUD: Federal Housing Administration
4. Your path to homeownership: Buying versus Renting