Gov. Albert Bryan Jr. said in a livestreamed announcement Friday morning that the U.S. Housing and Urban Development Department’s recent suspension of funds to the V.I. Housing Finance Authority will not impact more than $1.9 billion in disaster recovery and mitigation dollars already obligated to the territory.
Speaking from the podium at Government House on St. Thomas, Bryan said he and his team have spent the week meeting with federal officials to gain clarity regarding the extent of the funding freeze’s impact and that “this morning, our friends in the White House are working to coordinate a meeting with our team … the Housing Finance Authority, and HUD.”
VIHFA has already appealed the suspension, he added before asking that Virgin Islanders and candidates in particular stop talking about the issue and the deficiencies which led to it.
“Throughout this process, we are asking everyone involved to have limited public comment,” he said. “The temptation to politicize this issue with speculation and irresponsible rhetoric is an urge way too complicated to succumb to. This is a very complicated appeal process, and we want to preserve every opportunity to make sure we are successful.”
Bryan said that based on his administration’s understanding, the suspension is an “entity-level administrative matter” that is separate from the $1.9 billion in Community Development Block Grant funds allocated for disaster recovery and mitigation work, “which have already been signed and have been active for the last several years.”
“That distinction is very important,” he said. “However, the consequences of this recent action remain very serious for VIHFA and for the people of the Virgin Islands.”
Bryan said the suspension could affect the semiautonomous agency’s ability to receive or administer federal dollars in the future — including upcoming CDBG allotments and funds that support affordable housing initiatives.
“That is why we must resolve this matter,” he said. “We are not only protecting the recovery work underway today — we are protecting the Virgin Islands’ ability to compete for and effectively administer the housing resources we will need tomorrow. Homeowners, contractors, subrecipients and community partners should continue to work, and the work that they’re doing with the Housing Finance Authority and their existing program contacts.”
Reiterating his position that some of the deficiencies flagged by HUD — which include lax or nonexistent fraud prevention measures at VIHFA — have already been addressed and corrected, Bryan said his administration will continue working with VIHFA and HUD to meet federal standards.
Media covering Friday’s briefing virtually were not able to ask questions. Instead, they were directed to contact Government House spokesperson Richard Motta Jr.
In a separate statement issued Friday, Delegate to Congress and gubernatorial candidate Stacey Plaskett said she will meet with Bryan and the 36th Legislature to discuss the funding suspension and its implications.
“I’ve shared with the Governor conversations I have had with Republican leadership in Congress regarding this issue that stand ready to support our efforts to create a plan acceptable to HUD,” she stated.
