Administration outlines status of recovery funding, potential implications, and next steps in the federal review process.
U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. announced Friday that the Virgin Islands’ recovery programs remain operational as his administration works with federal officials to clarify and resolve the U.S. Department of Housing and Urban Development’s recent administrative action involving the Virgin Islands Housing Finance Authority.
During a press conference, Governor Bryan said approximately $1.9 billion in Community Development Block Grant Disaster Recovery and Community Development Block Grant Mitigation funding already obligated to the Virgin Islands has not, at this time, been suspended or terminated.
“The recovery is continuing,” Governor Bryan said. “The programs supporting homeowners, renters, small businesses and communities remain operational. Awards, agreements, contracts and construction activities that were already committed remain in place.”
The governor said his administration has spent the week meeting with federal officials and other partners in Washington to gain a clearer understanding of the scope and potential implications of HUD’s action.
He thanked the Trump administration, including officials at the White House and the U.S. Department of the Interior, for their assistance. He also acknowledged the Territory’s representatives, advisers and partners in Washington for helping the administration obtain information and coordinate its response.
Governor Bryan said White House officials are working to coordinate a meeting among HUD, the administration and VIHFA. The authority has requested an appeal of HUD’s decision, and the meeting is intended to provide further clarity on the action and its potential consequences.
“We are working together to obtain the facts, protect the interests of the people of the Virgin Islands and bring this matter to a fair resolution,” Governor Bryan said.
Based on the information currently available to the administration, HUD’s action is an entity-level administrative matter that is separate from the CDBG-DR and CDBG-MIT grant agreements governing funds already obligated to the Territory.
“The obligated CDBG-DR and CDBG-MIT funds have not been suspended or terminated,” Governor Bryan said. “Those recovery grants remain active, and that distinction is important.”
Homeowners, contractors, subrecipients and community partners should continue working with their existing VIHFA program representatives. Reimbursements, draws and program payments under existing agreements are continuing through the normal federal review, documentation and compliance processes.
“Our message to program participants is simple: Continue the work. Continue submitting the required documentation. Continue communicating with your VIHFA representatives,” Governor Bryan said.
The governor said any change affecting a specific program, project or participant would be communicated directly and promptly.
Although obligated recovery funding remains active, Governor Bryan emphasized that HUD’s action could have serious consequences for VIHFA and the Territory’s future housing and community development needs.
The action could affect VIHFA’s ability to receive or administer future federal funding and participate fully in federal housing programs. That includes future annual Community Development Block Grant funding and the authority’s ability to support affordable housing developments that depend on programs such as the Low-Income Housing Tax Credit.
“These resources are essential to building and preserving affordable housing, supporting low- and moderate-income families and addressing the Territory’s long-term housing needs,” Governor Bryan 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.”
Governor Bryan said the administration and VIHFA are proceeding on two tracks: responding to HUD’s administrative action through the appropriate federal legal and administrative processes while continuing the day-to-day delivery of recovery programs. “We will do both,” Governor Bryan said.
VIHFA is working with specialized counsel and will pursue all available remedies under applicable law and federal procedures. At the same time, the authority and its partners will continue working directly with HUD and its Disaster Recovery Unit to keep projects moving, address outstanding concerns and accelerate assistance to Virgin Islanders.
Governor Bryan acknowledged that HUD has previously documented concerns involving program administration, internal controls and the pace of recovery delivery.
“Those concerns must be met with facts, corrective action and measurable progress,” Governor Bryan said. “Some corrective measures have already been undertaken and additional work remains. My administration will continue requiring VIHFA to strengthen its systems, improve delivery and meet all federal standards.”
The administration has also scheduled a briefing with members of the 36th Legislature and the Virgin Islands delegate to Congress to share the information received to date and answer questions.
Governor Bryan urged elected officials and members of the community to avoid speculation and irresponsible rhetoric while VIHFA’s appeal and the federal administrative process remain pending.
“This issue is too important to be politicized,” Governor Bryan said. “Every elected official and leader in the Virgin Islands has a voice that carries far beyond the shores of our Territory. We all have a responsibility to speak carefully and act responsibly.”
The governor said the administration will continue seeking complete information, written clarification and a fair administrative process while working constructively with HUD to resolve its concerns.
“Our responsibility is clear: protect the public interest, preserve critical recovery funding, safeguard access to future housing resources, correct deficiencies where they exist and keep delivering results,” Governor Bryan said.
“To our homeowners, renters, contractors, subrecipients and community partners, thank you for your patience, trust and continued work,” the governor continued. “We will vigorously defend the interests of the Virgin Islands while moving just as decisively to make the improvements necessary to strengthen VIHFA and meet all federal requirements.”
Governor Bryan closed by reaffirming the administration’s commitment to transparency, accountability and continued recovery.
“Virgin Islanders have shown extraordinary resilience since 2017. Your government must match that resilience with focus, discipline, transparency and urgency,” Governor Bryan said.
“Recovery continues. Accountability continues. And our work on behalf of the people of the Virgin Islands continues.”
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