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USVI Housing Funds Halted Amid Corruption Probe
21 Jul
Summary
- US suspends funding for USVI housing authority due to corruption.
- Billions in disaster aid remain unspent nearly a decade later.
- Widespread mismanagement and fraud plague recovery efforts.
The U.S. government announced on Monday the suspension of funding for the U.S. Virgin Islands' housing authority. This drastic measure follows an investigation revealing extensive corruption and financial mismanagement.
Nearly a decade after Hurricanes Irma and Maria struck in 2017, the U.S. territory has failed to adequately utilize the $1.9 billion in disaster recovery funds. HUD's investigation found significant issues, including inadequate fraud controls, false certifications, and improper payments.
As of July 20, the U.S. Virgin Islands' housing authority had only spent $570,000 of the allocated funds. The authority has made minimal progress on housing projects, completing only two of 95 planned single-family rental rehabilitations and none of 329 single and multifamily housing projects.
Furthermore, only 2% of electrical grid recovery funding was spent by May. Meanwhile, over half of grant funds were allocated to administrative costs. The authority is also accused of attempting to claim $6.2 million already paid by FEMA.
