Feb. 26, 2003 – Hard times may soon get worse, Housing Authority executive director Ray Fonseca told his agency's board of commissioners Wednesday, as he awaits word on how deeply a new round of federal budget cuts will affect VIHA operations.
In the face of a balanced budget mandate issued by the U.S. Department of Housing and Urban Development last October, Fonseca dismantled the Housing Authority Police and laid off more than a dozen senior managers in December.
But he warned commissioners on Wednesday of a nationwide cutback in federal funding for public housing budgets. "I told them right now the budget cut is between 30 percent and 10 percent," he said, following the board meeting held at the Housing Authority's executive office on St. Thomas.
In dollars, that could mean between $2M and $6M in lost funding, he said.
VIHA's financial state topped the agenda at the meeting. Fonseca would not speculate on what even tighter federal purse strings will mean. He said he will comment once he learns how much money HUD has approved for Virgin Islands Fiscal Year 2003 spending. Because of a delay in the delivery of FY 2002 funds, VIHA is currently operating with the 2002 plan in effect. Fonseca said he expects the 2003 plan to be approved before June.
At Wednesday's meeting, the board reviewed a number of construction and improvement projects budgeted for the current fiscal. It approved more than a million dollars in funding for four different projects, including $990,000 for post-Hurricane Marilyn renovation on St. Thomas of several Tutu Hi-Rise housing community buildings.
Jerome Sewer, VIHA construction manager, said the Tutu project includes installation of smoke detectors and vinyl floors, replacement of cabinets and windows, and exterior painting. Board members pointed out the $990,000 figure was $163,000 in excess of the projected costs, Sewer agreed but said it was a more realistic figure.
The board also reviewed a contractor's bid to renovate public housing units on St. Croix. The three St. Croix board members rejected an appeal by Housing Parks and Recreation Commissioner Ira Hobson to choose the lowest bidder, Ayala Construction. The board instead chose Juno Construction, which offered to refurbish vacant units for $5,000 apiece. Ayala had bid $3,919 per unit for the work, a figure considered by Fonseca and the VIHA board to be unrealistically low.
The board also approved awarding Vaaco Inc. an $87,500 contract to remove asbestos from Tutu Hi-Rise Building 6, which is scheduled for demolition. And it approved $65,000 for Small Acts Inc. for sidewalk repairs and replacement of a crumbling retaining wall at the Bovoni housing community.
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