VIHFA Sounds Alarm Over Nearly $20M in Unreceived Stamp Tax Revenue, Strains to Sustain Housing Initiatives

The Virgin Islands Housing Finance Authority says it has not received any stamp tax revenue since 2022, leaving a nearly $20M gap that lawmakers warn could hinder housing development, strain payroll, and exacerbate a growing affordability crisis.

The Virgin Islands Housing Finance Authority (VIHFA) is raising serious concerns about a mounting shortfall in stamp tax revenue—funds that, by law, the agency should have received and relied on to support its core housing programs. The agency says it is now owed close to $20 million in unpaid stamp taxes, despite including this revenue in its annual budget forecasts.

VIHFA’s Executive Director Eugene Jones Jr., appearing before the Committee on Budget, Appropriations, and Finance on Monday, said the agency continues to wait on revenue that was supposed to be allocated from the stamp tax fund. “The Authority was projected to receive $5 million in Stamp Tax revenue for fiscal year 2024 along with another $6 million in fiscal year 2025,” Mr. Jones testified. However, according to VIHFA Chief Financial Officer Valdez Shelford, the agency has not received any stamp tax appropriations since $5 million in 2022.

Senator Novelle Francis, chairing the committee, was visibly unsettled. Jones indicated that information has been sent to the Office of Management and Budget, and that OMB Director Julio Rhymer is expected to consult with the Department of Finance about the status of the overdue funds. In the meantime, Mr. Jones said VIHFA has been forced to be “really stringent on watching our budget” and is exploring alternate revenue options.

The agency’s FY2026 budget request totals $28,924,234, which includes $2 million from the General Fund—a line item that has remained unchanged for 15 years and now only covers salaries and fringe benefits for about 20 employees. The rest of the budget relies heavily on stamp tax revenue, home sales, commercial leases, mortgage collections, and federal reimbursements. According to Jones, VIHFA expects to generate approximately $2.7 million from home sales, earn $150,000 annually from 18 commercial leases, and bring in $350,000 from mortgages.