FLORIDA - Florida is receiving a billion dollars from two pots to fight the state's housing problems.

Half a billion is available now.

And as Whitney Ray tells us, the rest will come from the federal government around the first of the year.

With the stroke of a pen Governor Charlie Crist authorized up more than half a billion dollars in tax exempt bonds.

The sale of the bonds will create a pool of money used to offer low interest loans to first time home buyers.

Charlie Crist / Governor: "In the housing area alone, it's 571 million dollars that wasn't available before I signed that."

Another half billion will be pumped into the state around the first of the year through a federal housing grant.

Whitney Ray / Reporter: "The money will be used to help people who have lost their homes to foreclosure… buy them back."

The Florida Department of Community Affairs says the money will be distributed to cities and counties and loaned to local people.

Tom Pelham / Dept. of Community Affairs: "People who have lost their house, it's been foreclosed on, there's going to be a foreclosure sale. Under this program a local government, a housing authority or some other entity could use these funds to purchase that house. The person who just lost it can get assistance to get their house back."

The federal dollars will be distributed to Florida cities and counties based on their foreclosure rate.

In Tallahassee, Whitney Ray, Channel Three News.

The federal money will be available sometime after the state submits its action plan to the US Department of Housing and Urban Development.

The deadline turn in the plan is December 31st.Florida Economic Stimulus Plan Signed