In this paper we present an optimized resource allocation algorithm for the uplink of space frequency block coded code division multiple access (SFBC-CDMA) systems. The algorithm allocates appropriate base transceiver stations (BTS), antenna array sub system and frequency subcarrier blocks to users such that the pair wise cross correlation between the users is minimized while maximizing the channel coherence time. The intermediate effects such as reduction of the channel estimation error and higher signal powers culminate into more cost effective multiple input multiple output (MIMO) operation. The proposed algorithm shows a noticeable improvement in the bit error rate of the users and the bandwidth efficiency of the system compared to random resource assignment.