Government

$1.8 Million Cost Per Public Housing Unit Sparks Alarm, Raising Fears Middle-Income Families Are Being Priced Out

The rising cost of public housing construction and the planned demolition of existing units without immediate replacement sparked alarm during a legislative hearing on Wednesday, as lawmakers pressed Virgin Islands Housing Authority leaders for answers on the future of affordable housing. VIHA Chief Operating Officer Lydia Pelle, joined by agency leadership, testified before the Committee on Housing, Transportation, and Telecommunications. Senators were shocked to learn that constructing a single new unit now costs approximately $1.8 million. Adding to concerns, VIHA confirmed plans to demolish public housing units with no immediate replacement strategy, despite escalating demand for affordable housing. Senator Carla Joseph sought clarity on the Estate Donoe rebuild. She recalled that the project could have required $46 million more than anticipated, but Ms. Pelle corrected the figure. “It required approximately an additional $80 million” instead, she stated. Ms. Pelle explained tha...