Virgin Islands lawmakers pressed housing officials Wednesday during a legislative hearing that highlighted the territory’s deepening public housing crisis.
“We are a troubled housing authority,” said Virgin Islands Housing Authority Executive Director Dwayne Alexander, who told the Committee on Housing, Transportation and Telecommunications that the agency scored just 19 out of 40 points in recent federal assessments. The authority is grappling with more than $1 billion in deferred maintenance while receiving only $11.5 million in annual federal funding.
According to Alexander, the Virgin Islands Housing Authority manages 2,426 public housing units across 22 developments while supporting more than 1,300 families through housing assistance vouchers.
Officials gave updates to lawmakers on several critical housing projects that are advancing despite significant cost overruns and delays.
The D. Hamilton Jackson Terrace rehabilitation in Christiansted is 30% complete, with $121.6 million in combined federal funding covering 106 units. Meanwhile, the Tutu North Senior Housing project for 60 units is out for bid, with responses due Sept. 25.
At John F. Kennedy Terrace, plans call for demolishing 144 units located in propane blast zones, displacing 42 families and reducing the development to just 56 units — raising concerns from lawmakers about the shrinking public housing inventory in Christiansted.
The Donoe redevelopment, originally budgeted at $47 million, required an additional $80 million in financing, bringing the total cost to over $127 million for 84 units, roughly equaling $1.5 million per unit. Construction resumed in June after securing new funding, with 13% completion achieved. The project has a target completion date of December 2026.
Lydia Pelle, the housing authority’s chief operating officer, said higher construction costs, professional fees, and inflation drove the increase. According to Pelle, insurance costs have skyrocketed from approximately $5,000 per unit two years ago to $13,000 currently.
Eugene Jones Jr., executive director of the Virgin Islands Housing Finance Authority, reported construction costs now range between $275 to $400 per square foot — approximately 55% higher than major mainland cities like Chicago and Washington, D.C.
“These numbers underscore the high cost of development in the territory,” Jones said, citing the territory’s geographical isolation, shipping costs, limited suppliers and workforce shortages as key factors.
Facing traditional construction challenges, VIHFA is exploring alternative housing solutions, including tiny homes, container homes, and modular homes.
“VIHFA is addressing the complex, deeply rooted challenges of the local housing market, including high construction and insurance costs and workforce shortages and regulatory constraints by exploring affordable disaster resilient housing options and leveraging its extensive land inventory.” said Adrienne L. Williams-Octalien, director for the Virgin Islands Office of Disaster Recovery.
The authority manages 589 land parcels territory-wide, with 362 on St. Croix, 210 on St. Thomas, and 17 on St. John.
The Own a Lot, Build a Home program, launched in June 2024, provides grants to first-time homebuyers constructing on property they already own. Five applications are currently in the pipeline, with over 200 residents requesting information.
The VI Slice moderate-income homeownership program, administered by the Economic Development Authority, offers gap financing up to $200,000 for eligible first-time homebuyers.
In Williams Delight, 38 families have made down payments under a homeownership initiative, with information to be transmitted to the governor’s office for $15,000 grant issuance by the fourth quarter of 2025.
“The decisions we make today to help people moving forward in Williams Delight to own their own homes will affect them and their children and their grandchildren,” said Sen. Marise James, praising the governor’s support for the program.
Committee Chair Marvin Blyden pressed officials on why so many units remain unoccupied, pointing to 61 empty apartments in Bovoni, of which only 12 are under modernization. He criticized limits placed on maintenance workers’ overtime hours, which he said contributed to delays in preparing units for tenants.
“Let the guys work. The work is there. The skill set is there. Let them make the money,” Blyden said. “It’s about the tenants. Without the tenants, none of you guys would be there. Period.”
The authority’s Section 8 Housing Choice Voucher program earned a perfect 140 out of 140 points in Housing and Urban Development’s assessment but operates at only 64% utilization due to budget constraints, leaving 749 vouchers unused despite demand.
“We used over 100% of our budget … we couldn’t house any other families because we’ve used all the money,” explained Akala Anthony, housing choice voucher program director.
With 438 people on public housing waiting lists and Section 8 applications frozen due to budget constraints, senators expressed concern about the territory’s most vulnerable residents.
“The average person don’t have a prayer in this conversation,” said Sen. Dwayne DeGraff, noting how public housing communities are “slowly leaving us” through demolitions without replacement.
Alexander warned of potential federal funding cuts, calling it “a big possibility.”
As the territory navigates an uncertain federal landscape, officials emphasized the need for expeditious use of grant funds and continued collaboration between agencies. Officials also emphasized that combating the territory’s housing crisis requires immediate action on multiple fronts — from securing additional funding to exploring innovative construction methods.
“Our work is not simply about building and maintaining housing units. It’s about restoring dignity, expanding housing opportunities, and creating pathways for Virgin Islanders to thrive,” Alexander said.
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