The US Department of Housing and Urban Development (HUD) has paused federal funding for the Virgin Islands Housing Finance Authority (VIHA) following accusations that the authority misused and mismanaged hurricane relief money.
According to HUD, irregularities were found in the awarding of contracts and the use of funds allocated after Hurricanes Irma and Maria in 2017. The agency alleges that money was spent on projects that did not meet program requirements and that invoices were submitted for work that was not performed.
The authority has denied the allegations, stating that it is fully cooperating with oversight bodies and that all expenditures are properly documented and compliant with regulations. Nevertheless, HUD has said that further disbursements of federal aid will remain suspended until an independent investigation is completed.
The suspension affects both current and future affordable‑housing programs in the US Virgin Islands. Local officials warn that the funding freeze could delay reconstruction efforts while the inquiry proceeds.