$1.5 billion was designated by the Obama Administration to aid the five states hit hardest by the housing crisis. The states getting money are Florida, California, Nevada, Arizona and Michigan.

Florida's $480 million share could begin flowing as early as late summer. But first, state officials have to figure out how they want to spend it.

"We will be coming up with a proposal for a program or programs to disseminate the money," said Cecka Green, communications director with Florida Housing Finance Corporation, the agency charged with developing a spending plan.

She said the idea is to keep people in their homes.

"[The federal money] is really to help homeowners that are currently underwater or in various stages of foreclosure," Green said.

FHFC has assigned a team of state workers to develop a spending plan ahead of the April 16th deadline. Green said nothing has been decided, but "principle buy down," and "payment forgiveness" are among the likely options.

Critics of the spending say the plan will only delay the inevitable, arguing that struggling homeowners should continue with the foreclosure process so the houses can be put back on the market.

They say the majority of homeowners who receive government help to avoid or get out of foreclosure end up back in default.