The V.I. Housing Finance Authority is preparing to introduce a $1.745 million program that would provide eligible first-time homebuyers with grants of up to $50,000 to construct cisterns and concrete slabs, alongside loans of up to $15,000 for septic systems, with Executive Director Derek Gabriel targeting the release of program rules before Thanksgiving.
During Tuesday's hearing before the Senate Committee on Housing, Transportation, and Telecommunications, Mr. Gabriel said the authority is reviewing eligibility requirements to ensure the program reaches more moderate-income Virgin Islanders who may not qualify for other housing assistance.
He acknowledged that the draft rules he inherited were more restrictive than he believes necessary and said VIHFA is examining ways to expand participation. "I'm still committed to getting out, at least those rules and regulations, before Thanksgiving," Mr. Gabriel told Senator Kurt Vialet.
He explained that finalizing the rules is a necessary step before the authority can develop its application process and begin accepting requests for assistance.
The funding was approved under Act No. 9124, which directs $1.745 million to VIHFA for the Cistern and Slab Program.
As previously reported by The Consortium, lawmakers approved the allocation in August after Senator Vialet amended legislation redirecting unused first-time homebuyer funds to several housing initiatives.
The enacted legislation provides grants of no more than $50,000 per eligible first-time homebuyer for the construction of a cistern and/or concrete slab.
Mr. Gabriel told lawmakers that the program will also incorporate assistance for septic systems. That component would be structured as a loan capped at $15,000 per applicant, while the cistern and slab assistance would be provided through grants of up to $50,000.
The septic loan component was outlined in Mr. Gabriel's testimony; the specific provision of Act No. 9124 appropriating $1.745 million identifies grants for cistern and slab construction.
The executive director envisions the initiative as part of a broader pathway to homeownership, allowing Virgin Islanders to move from purchasing land through VIHFA to preparing a homebuilding site and ultimately obtaining construction financing from a commercial bank.
Under that approach, individuals purchasing lots from the authority could transition into the Cistern and Slab Program before seeking financing to complete construction.
According to Mr. Gabriel, the eligibility criteria currently under consideration include first-time homebuyer status, a minimum of three years of Virgin Islands residency, three years of stable employment, a minimum credit score of 620 and legal adult status.
Applicants would also be required to occupy the completed home as their primary residence.
However, Mr. Gabriel indicated that additional requirements, particularly those governing income eligibility, remain under review.
He told lawmakers there are "a couple of other parameters I'm looking at moving, which is why I don't want to talk about them when it comes to income."
Senator Vialet reminded the executive director that the program was intended to assist moderate-income residents who cannot access other VIHFA homeownership initiatives.
The senator's concern reflects the original purpose of redirecting the housing funds. During earlier legislative deliberations, lawmakers questioned why millions previously appropriated for first-time homebuyers had remained unused despite continued demand for affordable housing assistance.
In June, The Consortium reported that lawmakers were considering reallocating $4 million in dormant housing funds, with the Cistern and Slab Program emerging as one of the proposed beneficiaries.
The program's anticipated introduction comes as VIHFA faces significant restrictions on its federal funding following the July suspension imposed by the Department of Housing and Urban Development.
That federal action has disrupted numerous housing recovery and homeownership initiatives, including projects requiring new federal funding commitments. The Consortium documented the resulting delays in a September investigation.
Mr. Gabriel said the authority must "be more creative when the local funds are at play," emphasizing the importance of maximizing available territorial resources while it continues appealing HUD's action.
Senator Vialet also disclosed plans to pursue a permanent funding mechanism for the Cistern and Slab Program, rather than relying exclusively on occasional legislative appropriations.
"We're going to be looking at a permanent funding source so that we could have additional monies placed in that fund every year," the senator said.
For now, the immediate priority is completing the program's regulations and establishing the application process.
Although Mr. Gabriel is targeting a release of the rules before Thanksgiving, VIHFA has not announced a specific date for accepting applications or disbursing funds. Final income limits and other eligibility requirements also remain subject to revision.
