Dec. 10, 2007 — Negotiations have already begun with the federal government for the return of the Warren E. Brown and Donoe Housing Community properties to the local government, a representative from the V.I. Housing Finance Authority (HFA) told senators Monday.
Members of the Committee on Housing, Sports and Veterans Affairs, hoping to move along the transfer, approved a bill authorizing the governor to negotiate the purchase or return of the land. It will be used to construct mixed-income/mixed-use housing communities, according to HFA.
While a development plan has not yet been completed, both rental and homeownership units would be constructed on each of the two St. Thomas sites, mixing residents with incomes ranging from $28,000 to upwards of $70,000, said Clifford Graham, Housing Finance's executive director, addressing the senators.
On a recent trip to Washington, D.C., representatives from the U.S. Department of Housing and Urban Development (HUD) — which has controlled the V.I. Housing Authority since August 2003 — said the agency would have to put the properties up for sale on the open market to transfer them, Graham said.
"Assistant Secretary (Orlando) Cabrera informed us that the only way HUD can dispose and/or transfer the assets that are currently under their inventory is by following their policies for asset disposition," Graham said. "He said that when these policies are followed, the properties must be advertised for disposition and the V.I. government, along with any other public or private entity, can bid for the properties. He further stated that if another entity outbid the government, that property would be awarded to that successful bidder."
However, Graham added that HFA was also told to submit a development plan so the sites could be developed in conjunction with the V.I. Housing Authority.
"… then HUD can approve a joint-development agreement between the two housing entities without going through asset disposition," he explained. "This joint-development agreement would have to clearly spell out the terms on which the V.I. Housing Authority and HFA would be compensated for the development."
Graham urged senators to amend the bill to allow for a joint project, and to make sure the sites will be used to construct mixed income/mixed use affordable-housing communities. A development plan would be submitted to HUD within the next few months, he added.
While senators applauded Graham's efforts to push through the transfer, they also said they were "fed up" with HUD's presence in the territory, claiming the federal government took advantage of the islands' "vulnerable" state after devastation reeked by hurricanes Hugo and Marilyn.
"After the hurricanes, we were so vulnerable, so gullible," said Sen. Carlton "Ital" Dowe. "We had to turn to the federal government for some help for our people. But they have made it clear that they have no interest in developing public housing down here — none whatsoever."
Adding to the commentary, Sen. Celestino A. White Sr. — the committee's chair — said that HUD has, over the years, used the V.I. Housing Authority as a political tool.
"They have rewarded their political friends by deeming the authority 'troubled,' and getting some of these individuals to come in and take over," he said. "But the truth is, the state of the communities are worse, much worse, since HUD has been here."
Amendments incorporating Graham's suggestions will be added to the bill during the second step of the committee process, White added.
Wrapping up the meeting after two short hours, senators also approved a bill that gives public-housing tenants who have been "displaced" by a hurricane or other natural disaster the right to reoccupy their housing unit once it becomes available.
Both bills will move on to the Rules and Judiciary Committee for further consideration, and then to the full Senate body for final approval.
Present during Monday's meeting were Sens. Liston Davis, Dowe, Louis P. Hill, Usie R. Richards, Carmen M. Wesselhoft, Alvin L. Williams and White.
Sens. Neville James and Shawn-Michael Malone were absent.
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