Despite generous subsidies for first-time home buyers, the V.I. Housing Finance Authority is having trouble selling units in its Calabash Boom moderate price housing development on St. John, acting Executive Director Adrienne Williams told the Legislature Wednesday during budget hearings.
Of the recently completed 24 duplex units in 12 buildings on St. John, six units have sold and one is under contract, Williams said.
"The typical St. Johnian has property and prefers to build on their own property," she said. VIHFA has been tweaking its approach, emphasizing how owning a home is a great investment compared to renting.
"So you don’t think it is the price point, but more lack of interest?" asked Sen. Louis Hill.
While the asking price of $295,000 per unit may put off some buyers, that price is before substantial VIHFA subsidies, said Williams.
"Right now, a(n eligible) family would just need to qualify for a $125,000 mortgage to purchase a unit because the subsidies are already built in," she said.
Meanwhile, though struggling like other government agencies, VIHFA still has a variety of programs to help would-be homeowners. For instance, veterans who meet eligibility requirements may be eligible for subsidized mortgages. Currently, $1.1 million is available for loans to veterans and refinancing options are available for those vets whose primary residence is at risk of foreclosure, she said.
VIHFA is partway through or nearly complete with several construction and renovation projects, many funded by federal grants.
Construction continues on 173 moderate income homes in Raphune Hill, St. Thomas, under the VIHFA’s Private Affordable Housing Program. Construction should soon begin on 60 affordable single family units and 40 townhouses in Estate Donoe on St. Thomas. VIHFA has been trying to finalize financing for 60 affordable single-family units in Estate Bonne Esperance on St. Croix, Williams said.
The VIHFA is requesting an appropriation of $2.28 million for 2012. Of that, $700,000 is for the Housing Finance Authority’s operations; $328,000 for the CDBG program; $460,000 for operating housing formerly under the control of the V.I. Housing, Parks and Recreation Department, and $787,000 for utilities and maintenance for the housing under its control.
Along with the government appropriation, VIHFA anticipates receiving $560,000 in administrative CDBG fees; $400,000 in mortgage payments and $100,000 in lease payments;, $300,000 from house sales, $155,000 from land sales and an array of smaller receipts, for a total budget of $4.5 million, according to the Legislature’s post audit. Salaries account for $2.1 million and benefits another $900,000 of that budget.
Aside from its own budget, VIHFA oversees millions of dollars in federal grants for emergency shelter for the homeless, improvements to public housing, mortgage buy-down assistance and other federal housing initiatives.
No votes were taken at the information-gathering hearing. Present were Sens. Carlton "Ital" Dowe, Ronald Russell, Celestino White and Nereida "Nellie" Rivera-O’Reilly.
