Confronted with what both housing leaders described as a “dire” situation, senators pressed officials from the Virgin Islands Housing Finance Authority (VIHFA) and Virgin Islands Housing Authority (VIHA) on Monday for solutions to the territory’s worsening housing crisis—where thousands of families remain on waiting lists and affordable units remain scarce.
“We have a very strong need for low-income housing,” VIHA Executive Director Dwayne Alexander told senators. “That’s where any community starts—that’s almost the next stop before you become homeless.”
Testifying during a Senate Finance Committee budget hearing, Alexander stressed that discussions around “affordable housing” often exclude the poorest Virgin Islanders. While “affordable housing” typically targets residents earning between 100% to 130% of the area median income (AMI), Alexander said federal guidelines define “low-income” as 80% or less of AMI—and that’s where the demand is greatest.
“When people talk about affordable housing, they leave the low-income folks out,” he said bluntly.
VIHA, which oversees 2,129 public housing units across 18 communities, presented a FY 2026 budget built almost entirely on federal HUD funds—yet those funds face deep cuts under President Trump’s proposed federal budget. Alexander warned that HUD support could shrink by 44%, threatening both public housing operations and rental assistance programs. At this point, Alexander said VIHA remains designated as “troubled” under HUD’s Public Housing Assessment System—which he added could eventually put it at risk of receivership—though it is working to improve the overall outlook with reported clean audits and improved metrics, among other things.
“If Congress converts rental assistance into block grants, the burden will fall squarely on the local government,” Alexander said, warning that such a move could destabilize public housing across the territory.
Meanwhile, VIHFA Executive Director Eugene Jones Jr. said the lack of stable, predictable federal and local funding is hamstringing his agency’s ability to respond to the crisis.
“We’re pointing fingers at the wrong people,” Jones said. “It’s Congress—it’s the appropriators. There’s no commitment to providing affordable housing, additional housing, and until we get Congress to understand what housing means to every American, it’s going to be highly impossible to commit to 100 units, 1,000 units; whatever the number is it’s not going to be attainable until we have a national housing policy.”
Jones emphasized that wages and housing must be addressed together: “How do we keep our young people here? Wages need to go up, but you also have to balance that with affordable housing—and that’s always the difficult task.”
VIHFA, responsible for financing homeownership and development projects, requested a flat $2 million General Fund appropriation for FY 2026—funded entirely by Stamp Tax collections. But, Jones revealed, the agency still has not received its $2 million Stamp Tax allocation since fiscal year 2022, which now amounts to about $20 million. “We still haven’t gotten our money,” Jones said, underscoring the pressure on the agency’s staffing and operations.
That $2 million covers just 20 of VIHFA’s 105 employees, all classified as “core” positions—non-federally funded personnel. Senators repeatedly questioned how the agency funds its remaining 33 “core” employees, with Jones and VIHFA Chief Financial Officer Valdez Shelford eventually explaining that revenues from home sales, mortgage payments, commercial leases, and collections cover the difference. Senators added that they needed the facts and figures in order to “clearly” understand how the employees are covered, and what the Stamp Tax funds are being used for, as it also is supposed to be used for “infrastructure and other areas as prescribed by law” along with administration, said Sen. Kurt Vialet.
“We do talk about the Stamp Tax every day,” Jones told Sen. Hubert Frederick later in the hearing. “We’re advising the board and being responsive, but it’s tight.”
Senators, including Sen. Dwayne DeGraff, raised concerns over VIHFA’s missing funds from both the Stamp Tax and the Land Bank Fund, which Jones confirmed had not been received.
While VIHFA relies on Stamp Tax collections for its core operations, its broader portfolio is dominated by federal funding streams:
$749.6 million in CDBG-DR (Disaster Recovery) funds.
$774 million in CDBG-Mitigation funds.
$67.6 million in electrical grid modernization grants.
These funds are designated for long-term projects and are not available for staffing or operational costs.
At the same time, Jones acknowledged that more outreach is needed about critical federal programs under VIHFA’s management, such as the Homeowner Assistance Program (HAF) and the Emergency Rental Assistance Program (ERAP), both of which have helped thousands of Virgin Islanders stay housed. “Those programs—it’s so critical that the message gets out,” said Sen. Marvin Blyden.
While VIHFA focuses on development and financing, VIHA directly manages public housing units and the Housing Choice Voucher Program, serving 2,092 families—but with over 3,500 on waiting lists.
Senators zeroed in on VIHA’s backlog of vacant units and unpaid rents. Alexander admitted that sevefral units had been vacant for extended periods and said the agency was using a combination of contractors and in-house staff to bring those units back online, with turnaround times ranging from 15 days to over 100 days depending on the unit’s condition. “Some of these units have been sitting for years,” Alexander said.
He also confirmed that VIHA is carrying more than $1 million in outstanding tenant rents—funds senators said could be critical for making repairs. Nearly $8 million is spent yearly on water, Alexander added, explaining to senators that it’s the authority’s duty to cover that cost for its tenants, though he was urged to find a way to decrease it.
“We need creative ways of bringing in more revenues,” Blyden told both agencies, pressing VIHA on how much it receives per occupied unit from HUD. Alexander explained that rental income is minimal and said the agency depends on HUD subsidies to fund operations. Even so, Alexander said VIHA’s modernization department is making progress on capital improvements, including rehabilitation projects and efforts to exit its federal “troubled” designation.
Throughout the hearing, senators pressed both Jones and Alexander to explain not only how they’re using current funds but also how they’re preparing for potentially steep federal cuts.
In closing, Jones called for a broader national conversation. “Until we have a housing policy, until Congress appropriates year after year, we’re going to be fighting the same battle.” Alexander agreed, but added: “Here in the Virgin Islands, our situation is already dire.”
