Housing

VIHA Exits HUD’s ‘Troubled’ Status in Eight Months; Change Does Not Apply to VIHFA

The V.I. Housing Authority has moved out of HUD’s “Troubled” designation after eight months and is now classified as a Substandard Performer, marking a significant improvement for the agency even as low occupancy, thousands of work orders and more than $1.2 million in tenant receivables remain obstacles to further progress. The designation change applies specifically to the V.I. Housing Authority, or VIHA, and should not be confused with the separate federal matter involving the V.I. Housing Finance Authority, or VIHFA. The two are distinct agencies. VIHA operates the territory’s public housing portfolio and is assessed under HUD’s Public Housing Assessment System, while VIHFA administers housing-finance, community-development and major federal grant programs. HUD announced an immediate funding suspension involving VIHFA on July 20 pending an investigation. VIHFA responded the following day that it was reviewing HUD’s correspondence and working with the department to address outstand...