VI Slice Program Suffering From 'Inventory' Issues, Lack of Lenders for Construction Loans, EDA Tells Senators

The Senate Committee on Budget, Appropriations, and Finance on Thursday scrutinized the operations of the V.I. Economic Development Authority during a budget hearing. Legislators rigorously assessed the EDA's programs, workforce, and incentives, expressing concerns over the apparent stagnation of the VI Slice program. Further, they posed challenging questions about potential inefficiencies within government agencies regarding the attraction and retention of top-tier talent.

The lackluster VA Slice program was a disappointment, said Senator Novelle Francis. He, along with Senators Dwayne DeGraff and Ray Fonseca, raised concerns about difficulties within the program. Senators DeGraff and Fonseca told Mr. Biggs that their constituents have expressed frustration with the process. “People are interested in getting into homes,” Mr. Fonseca said, “some of them qualify, they have the credit score, but they need that little extra $5,000, $10,000 dollars,” he continued.

“I am not pleased,” said Senate President Novelle Francis. “I thought that we would have seen this further ahead,” he continued, noting that migration to the mainland due to difficulty in securing homes was a continuing trend. “Those are our children, those are people that we depend on,” he said.

Mr. Biggs acknowledged the issues, pointing to misunderstood investment minimums and ratio requirements, as well as a limited inventory of available newly-constructed housing. “Many of these banks, although the program allows for a fixer-upper, the only entities that are really doing construction loans right now is Merchants Bank and the U.S. Department of Agriculture Urban Renewal,” Mr. Biggs explained. “So you can’t even buy a fixer-upper at a reduced cost and then fix it in that realm,” he said. Despite these challenges, Biggs expressed optimism, saying that modifications to the program may increase eligibility and allow it to serve more Virgin Islands residents effectively. The program, backed by a $20 million fund, will continue through 2024 or until funds are expended. With only one approved VI Slice mortgage on the books thus far, and three others in the pipeline, the vast majority of the money allocated remains unspent.