Florida homeowners in danger of foreclosure should be getting some relief soon, as Florida’s State Housing Finance Agencies got the go ahead on Wednesday to begin using the $418 million allotted to the state in the “Hardest Hit Fund.”

The money is a portion of the $1.5 billion foreclosure-prevention funding under plans approved by the Obama Administration for Florida, Arizona, California and Nevada, to support innovative local initiatives to help struggling homeowners in those states, as part of the first round of funding available under this new program.

Florida will offer mortgage payment assistance to the unemployed and under-employed while they seek re-employment.

Florida will offer up mortgage payment assistance to the unemployed and under-employed while they seek re-employment. The state will also offer principal reduction or second lien extinguishment if necessary to achieve a mortgage modification

“These states have identified a number of innovative programs that will make a real difference in the lives of many homeowners facing foreclosure,” said Treasury Assistant Secretary for Financial Stability Herbert M. Allison, Jr. “While we’ve made important progress stabilizing the housing market and keeping responsible families in their homes, the Obama Administration will continue to do everything it can to help those who are struggling the most during this difficult time. Today marks an important milestone for delivering relief to homeowners through the Hardest Hit Fund program.”

President Obama established the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (“Hardest Hit Fund”) in February 2010 to provide targeted aid to families in the states hit hardest by the housing downturn. The states approved to receive aid on Wednesday as part of the first round of funding provided through this program each experienced a 20 percent or greater decline in average housing prices.

Approved states will now begin to set up and roll out their specific Hardest Hit Fund programs to provide relief to struggling homeowners as soon as possible, with specific implementation timing depending on the types of programs offered, specific state-level procurement procedures, and other factors.

The proposals approved today include programs to assist struggling homeowners with negative equity through principal reduction; assist the unemployed or under-employed make their mortgage payments; facilitate the settlement of second liens; facilitate short sales and/or deeds-in-lieu of foreclosure; and assist in the payment of arrearages.