VIHFA Disaster Recovery | Measuring Progress

Message from the Chief Disaster Recovery Officer Dayna Clendinen

Earlier this year, we were grateful for the opportunity to meet with our federal and local partners to discuss our overall progress and share our goals for immediate improvement. We have identified systemic issues that have plagued the program, compounded by regulations, both from HUD and self imposed. While it is apparent that these concerns have affected the program since its inception and continued over the span of the program’s existence, there is hope.

Understanding urgency and ensuring progress with the rehabilitation and reconstruction of homes damaged by the 2017 storms, since our meeting, we have:

Executed a long awaited engineering and construction firm to expedite projects under the EnVIsion program by providing supplemental manpower. Many projects require architectural drawings and technical expertise to move forward, as each home we rehab or reconstruct is unique.

Employed two staff Engineers, with vast experience in Construction and Mechanical Engineering, that will have direct oversight of the construction phase of the Housing and Infrastructure projects and assist in the management of the staff augmentation contract.

Mobilized a general contractor, Persons Service Corp., and awarded construction services for 172 homes referred to as the EnVIsion 200 (EV 200). This increased the number of projects into the construction pipeline. VIHFA will continue to award small projects, less than 20 homes, to qualified companies, large or small.

Reviewed and made corrective actions to processes to improve and enhance the program’s overall performance and to address the need for increased services including preparation of damage assessments, revised scopes of work, and architectural drawings.

To address other challenges, we have reorganized our staff to better align with the current needs of the organization and developed and implemented a holistic employee onboarding experience for new and existing employees, which standardizes the organizational knowledge and increases the understanding of VIHFA's programs and processes. We have employed a Director of Finance to implement payroll allocation strategies to reduce our administrative costs and, most importantly, pay vendors timely. Further, we strengthened our Compliance Division with the recent hire of a Director of Policy and Regulatory Services, who is leading the development and implementation of a formal Citizen Complaint Process that increases public interaction, provides real time updates to clients, addresses all complaints received expeditiously, and actively reduce HUD monitoring findings.

We have learned significant lessons thus far in the areas of fiscal management, compliance and programs. The team at VIHFA remains committed to the successful execution and completion of the program. The following plan outlines our way forward.

HOUSING

INFRASTRUCTURE

Includes

ECONONOMIC REVITALIZATION

Includes funding for workforce development projects, specifically those that train the workforce for disaster recovery related jobs.

PUBLIC SERVICES AND FACILITIES

To date, the program has drawn over $241 million in CDBG-DR funding. Compared to the same period last year ($106 million,) the program has increased total funds drawn by over 127% (a total of $135 million). In 2022, the program is drawing funds at an average of $14 million per month and is on pace to draw $168 million for the year.

Financials At A Glance THE BUDGET

The below budgetary changes reflected in our Third Substantial Amendment reallocates funding for housing, infrastructure, public services, public facilities, and economic development based on two factors: the remaining unmet need and the ability to expend funds within the remaining time allocated for the Virgin Islands’ CDBG DR grant.

Specifically, we have increased the funding for: the reconstruction or rehabilitation of owner occupied and rental housing units, The repair or replacement of public housing units, and the creation of new housing units to be made available as homeownership opportunities for low and moderate income households.

MILESTONES Housing

Completion of Magens Junction Apartments funded by $3.9 million of Community Development Block Grant Disaster Recovery (CDBG DR) funds and $30.4 million in LowIncome Housing Tax Credit equity, this project is home to 108 families displaced by Hurricanes Irma and Maria.

Helped facilitate the construction of the first Rental Assistance Demonstration (RAD) project in the Caribbean. Funding for the Walter IM Hodge Pavilion includes VIHFA's allocation of $22.65 million from HUD’s Community Development Block Grant Disaster Recovery Program and $27.56 million in 9% Low Income Housing Tax Credits (LIHTC).

Issuance of Notice of Funding Availability for Fortuna/Wild Pineapple Development, with Whispering Hills and Estate Solitude upcoming. Housing portfolio also includes the redevelopment Estate Nazareth and Ross Mixed Use on St. Thomas, along with Estate Mount Pleasant on St. Croix, for the total development of more than 150 new housing units to the territory.

The Territory’s housing recovery programs are designed to meet unmet needs to support the most vulnerable residents impacted by Hurricanes Irma and Maria, including assistance for homeowners and tenants of rental properties to achieve permanent sustainable housing solutions.

Measuring Progress

Program | EnVIsion

Project: Envision Homeowner Rehabilitation & Reconstruction (HRRP) Eligible Owner Occupied Single Family Virgin Islanders

$195,046,728; Funds Drawn: $18.2M

HRR program assists eligible homeowners whose primary residences were damaged by Hurricanes Irma and/or Maria. This program is designed to create a habitable living environment for homeowners whose primary residence was fully destroyed or sustained substantial major, or severe damage. Eligible applicants will be assisted to reconstruct or rehabilitate their homes to make it habitable and compliant with flood plain, environmental, and other local requirements. Homeowners are provided a max award of $250,000 with approval of the 3rd amendment to the action plan the award will increase to $350,000.

Status

Eligible applicants (10/2022): 609 Eligible Cases with Grant Signed: 188 Homes in Construction: 34 Homes Completed: 21 Homes Assigned to a Contractor: 57

As of November 9, 2022, 81 assessment/inspections completed, 43 EV 200 Projects

Timeline

VIHFA expects to complete all homes by October 2026.

Challenges and Opportunities

Repairs to homes encompass roof repairs and/or replacement this requires architectural drawings Approved drawings with varying roof designs, standardized completed set of drawings cannot be used for multiple homes. Capacity concerns are varied: Contractors, skilled and available: VIHFA is competing with other entities including government agencies for contractors. Architectural and engineering services and knowledgeable construction contractors.

Availability of contractor familiar with code requirements for reconstruction and/or rehabilitation which extends to available workforce for contractors experienced with VI construction Workforce, VIHFA has difficulty with the hiring of Construction Managers, we have partnered with Skills for Today Program (Department of Labor) to hire individuals who has completed the construction program Ever increasing cost of construction: labor and material, ability to contain cost has become difficult.

Measuring Progress

Program | EnVIsion

Project: Envision: Rental Rehabilitation & Reconstruction (RRRP) Eligible Virgin Islands Single and Multi Family Homeowners

$50,384,097; Funds Drawn: $2,939,438

Rehabilitation or reconstruction of single family homes damaged by Hurricanes Irma and Maria. Program goal: Provide safe and functional dwellings to residents of the U.S. Virgin Islands. The Program aims to restore small rental properties damaged by Hurricane(s) Irma/Maria. Rental damage from the storms has a far reaching impact on the local population, displacing individuals, and families, constricting the rental income on which Landlords rely, and leaving individuals and families in sub par housing The program covers eligible costs of $75,000/affordable rental unit for rehabilitation or reconstruction of damage to real property with the approval of the 3rd amendment to the action plan the grant will cover an additional $100,00/per rental unit ($175,000) to bridge the gap of construction for small rental property owners.

The Program will provide forgivable loans to rental property owners with one to 20 units. The loans are forgiven during an affordability period contingent on the number of units served by a program Properties that have 1 7 units will be forgiven after five consecutive years of affordability to LMI households. Properties that have 8 20 units will be forgiven after fifteen (15) consecutive years of affordability to LMI households.

Status

Eligible applicants: 85 Homes in Construction: 0 (overall) Homes Repaired: 2

Timeline

Rehabilitate/Reconstruct 85 small rental properties; expenditure is based on project cost and construction percent complete.

Construction Management Services (Staff Augmentation) cost is $14.7 million; anticipated expenditure based on project delivery/completion.

Challenges and Opportunities

Same as HRRP

Measuring Progress

Project: Magen's Junction II

Funding Amount: $37,673,487

Magen's Junction 2 consists of is a completed 60 unit rental community located on the island of St. Thomas at Remainder Parcel 7 IA, Estate Joseph & Rosendahl and Parcel 3A, Estate Lovenlund. The projected was funded with Low Income Housing Tax Credit equity and CDBG DR funds. Construction was completed in June of 2021 receiving final occupancy for all buildings. The community if now fully occupied.

Status

Construction completed. Community has also achieved full occupancy.

Measuring Progress

Project | Donoe Redevelopment

VI Housing Authority | $37,673,487

Donoe Redevelopment Project is an affordable public housing rental community that is currently under construction on the island of St. Thomas. The scope consists of the construction of 84 units in 14 buildings. It is located at a site that was densely populated with 300 units 20 years ago. The units were demolished but some several thousand cubic yards of crushed concrete and rebars must be removed as part of the site work. There are also remediation plans for heavy metals in soils and asbestos in place. Remediation is in process and work continues as areas are cleared for construction.

Status Timeline Challenges and Opportunities

This project is currently 38% complete and is estimated to be finished in 2024 . Donoe Redevelopment Partners which consist of the Virgin Islands Housing Authority and Pennrose Development are currently negotiation on going with Travelers Casualty and Surety Company regarding the performance bond . Since the contractor, GEC, has been terminated for cause, the outcome of these negotiations will determine if a new contractor will be identified by the bonding company or if one will have to be procured for the restart of work at the site The timeline for this is (6) months minimum

Completion is estimated for June 2024.

Environmental remediation work aggressively continues on site while construction is at a standstill Left pending is the resolution of the selection of a contractor

Measuring Progress

Project | Ross Mixed Use

VI Housing Finance Authority | $3,416,075

The site for the Ross Mixed Use Project, is located on the corner of Alton Adams Sr Drive and Williams G. Lewis Lane. It is a proposed 3 storied building that will consist of commercial bays on the two lower floors and residential units on the third floor. The residential units on the third floor will be comprised of 4 2 bedroom units sized at 864 square feet and 4 1 bedroom units sized at 576 square feet. The units will include shutters and/or impact resistant windows with energy efficient appliances, HVAC systems, low flow plumbing and energy efficient window glazing to reduce heat transfer. Connection will be made to the public sewer, water and electrical infrastructure located adjacent to the property The proposed project will be a newly constructed building to include footings, foundation, and underground conduits.

Status

Bid evaluation expected to wrap up on December 9, 2022.

Timeline

Project is estimated to be mobilized with payments beginning to the selected contractor within 3 months. The construction timeline for the project is anticipated to be 24 months, beginning March 2023 December 2024.

Challenges and Opportunities

In the solicitation process, bids came in over budget and non responsive. As a result, the scope was revised, along with materials, for example, transitioning to concrete from steel frame structure.

VIFHA redefined scope of work and requirements to encourage responsive bidders.

Measuring Progress

Project | Walter IM Hodge

VI Housing Authority | $24,634,000

Walter IM Hodge is a 248 unit rehab project of an affordable public housing rental community on the western end of St. Croix that includes the installation of a wind retrofit system and new hurricane wind resistant windows and entry doors. New recreation facilities and a new Senior Center to accommodate the needs of residents will also be constructed.

Full mobilization occurred during the month of August by setting up staging, site fence, office trailers, temporary power, and plumbing work. Work on buildings 16 and 17 included asbestos abatement, demolition, and concrete spalled repairs by the General Contractor.

Timeline

Expenditure to begin December 2022 following a 27 month construction timeline in April 2025.

Status Challenges and Opportunities

Capacity challenges, compliance with HUD requirements including Davis bacon and section 3 review along with timely remediation of environmental issues. VIHFA staff have commenced related trainings and encouraged subrecipients and vendors to attend. As the local workforce continues to be limited, we are working with our Skills for Today recipient, the Department of Labor, to train and recruit qualified individuals. ;

Measuring Progress

Project | Croixville Preservation

Croixville Preservation Partners | $24,993,700

Croixville is a public housing community The project scope includes renovating 81 residential units within eight (8) buildings. Non residential related interior renovations will be concentrated within Croixville’s Community Building. Exterior work will include removing and replacing sidewalks, driveways, and parking lots and installing playgrounds. The funding consideration is $6.9 million, comprised of Low Income Housing Tax Credits and CDBG-DR funds.

Status

CDBG DR requested a flood plain waiver for Croixville from HUD. However, the waiver was denied due to a lack of a variance in the VI Code that would support mitigation measures apart from elevation for existing properties.

Timeline

Based on the approved application, this project is anticipated to have a 14 month timeline with a projected closing date of December 2022 for the Low Income Housing Tax Credit Investor closing.

Challenges and Opportunities

The denial of the Flood Plain Waiver by HUD.

Subrecipient is working with the developer to pursue a A viable alternative is to complete an application for a LOMR and submit it to FEMA. Simultaneously, VIHFA, in conjunction with Office of the Governor, Planning and Natural Resources, and the Office of Disaster Recovery is working to address and change the V.I. Code to support mitigation measures apart from elevation for existing properties.

Measuring Progress

Project | Emergency Housing

Virgin Islands Housing Finance Authority | $7,600,000

The Taarneberg Emergency Housing will consist of the construction of 11 emergency housing units and infrastructure to include newly paved driveways, a concrete area to house garbage for trash pickups, and underground cable wiring to keep families connected to emergency services

The Kronegade Inn project will consist of the renovation of 18 emergency housing units in Christiansted, St. Croix. The units will have easy tie ins for generators and solar panels. Site work will include paved driveways, a concrete area to house garbage bins for trash pickups, and underground utilities to keep families connected to emergency services.

Status

VIHFA is working on corrective measures needed for both applications, with approval anticipated during the first quarter of FY 2023. (between Jan March)

Timeline

Project timeline is expected to be 14 months after closing.

Challenges and Opportunities

Capacity challenges within VIFHA hampered the swift delivery of architectural and engineering services, and appraisals VIFHA reorganized to ensure that recovery projects are a priority and added additional staff.

Measuring Progress

ProjectD. Hamilton Jackson Terrace & Alphonso “Piggy” Gerard Complex Revitalization

VI Housing Authority | $48,420,000.

D. Hamilton Jackson Terrace ("Hamilton") located at 13 A, 13 B,13 BA&C Estate Richmond, Company Quarter, St. Croix, sits on approximately 4.5 acres & the Alphonso “Piggy” Gerard Complex ("Piggy") located at Parcel 14 Estate Richmond, Company Quarter, St. Croix, comprises of 5.32 acres. In all 124 units of the 136 units will be rehabbed at this project. VIHA is proposing to retain approximately half of the existing Piggy site due to its location in a regulatory floodway and not make those units part of this transaction.

In addition to CDBG DR funds, VIHA will utilize FEMA funds and leverage both 4% and 9% Low Income Tax Credits (applications pending) with those funds and participate in HUD's RAD Program. The scope of work will include the substantial renovation of the 124 units in 21 residential buildings, as well as well as community center/management offices, and exterior rehabilitation of all buildings, including site beautification, the addition of parking lots, and resiliency measures.

Status Challenges and Opportunities

Timeline

The application is currently in review for approval and issuance of a conditional commitment to assist with the packaging to HUD PIH for the review of the RAD package. Project timeline is anticipated to be 23 months after closing.

Challenges include the hybrid financing structure of 9% and 4% credits and the loss of technical assistance. VIHFA issued a Multi-Family Bond RFP specifically designed to address the 9% and 4% tax credit issues and loss of technical assistance. The RFP was deemed nonresponsive a second issuance is expected in December 2022.

Project | Affordable Housing

Virgin Islands Housing Finance Authority | $58,668,060

Fortuna (Wild Pineapple), Whispering Hills, and Estate Solitude are affordable housing initiatives that are being developed for the provision of affordable housing units to first time home buyers throughout the territory. The Program will develop and issue three Notices of Funding Availability (NOFAs) to request proposals from qualified developers to construct homes in these areas. The first of these will be for the construction of 12 homes in the Fortuna site on the island of St. Thomas.

A Notice of Funding Availability was issued on October 17, 2022, with bids due due on November 30, 2022.

Timeline

We anticipate the evaluations of bids in early December 2022, and contract execution within two months of November 30 deadline. Projects are expected to run on a 27-36 month schedule from start to finish, and start in March 2023.

Status Challenges and Opportunities

Capacity challenges within VIFHA hampered the swift execution of these projects. VIFHA reorganized to ensure that recovery projects are a priority, added additional staff, and used other available resources.

Measuring Progress

Project | Own a Lot, Build a Home

Virgin Islands Housing Finance Authority | $14,375,000

The Virgin Islands Housing Finance Authority, CDBG-DR’s “Own a Lot, build a Home” Program is a territorial lending initiative designed for first-time home buyers. It will provide twenty (20) year zero percent (0%) forgivable mortgages for constructing a new single-family dwelling. This program targets moderate-income eligible clients whose household incomes are based on 120% area median income for the CDBG-DR Housing Programs. The Virgin Islands Housing Finance Authority, CDBG-DR, will collaborate with participating lending institutions to ensure all applicants obtain additional financing for the total project cost before committing to the CDBG-DR funds. The funding availability is $12.5 million from CDBG-DR.

The launch of this program is anticipated in the first quarter of January 2023 with the receipt of the required environmental approval.

Timeline

Launch anticipated first quarter of January 2023.

Status Challenges and Opportunities

VIHFA review revisions made to the MOU based on relevant feedback received from lenders. Final MOU, and application package with environmental addendum to be shared with participating lenders during December 2022.

Rendering of Ross Mixed Use Project

MILESTONES Infrastructure

The U.S. Virgin Islands’ has identified multiple infrastructure priorities that must be addressed, and which directly support housing needs.

Residents not only suffered from direct damage to their homes from the hurricanes, but also endured the loss of critical services such as power and water due to damaged public infrastructure.

Efforts to harden the electrical grid and stabilize power generation include: a direct investment of $95 million to help the Virgin Islands Water & Power Authority upgrade its power plant on St. Thomas; earmarking $53 million for new generators on St. Croix; and putting more than $90 million in funding toward new composite poles and undergrounding initiatives across the territory.

Notice to proceed issued for Street Mapping Initiative through the Office of the Lieutenant Governor the project involves the rollout of 150,000 GIS address points to enable quick emergency response.

Lease agreements and use variances approved for the rehabilitation and relocation of seven convenience centers territory wide this partnership with the VI Waste Management Authority will facilitate a streamlined waste and wastewater treatment process. Environmental assessment is underway.

Measuring Progress

Program | Randolph Harley Power Generation

VI Water and Power Authority | $95,678,330

VIWAPA has purchased and is in the process of installing a 36 40 megawatt (MW) dual capacity, efficient conventional power generating technology that utilizes Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) as primary fuel sources, and Ultra low Diesel Fuel as a secondary fuel supply. A 9 MW Battery Energy Storage System (BESS) has also been purchased, delivered to the islands and installation preparations are in progress. This project will increase the electrical system’s reliability

To date, the Virgin Islands Housing Finance Authority (VIHFA) has paid $56,052,533.83 of the $95,903,330.00 CDBG DR funds. The project is 76% complete for the generator and 78% complete for the BESS.

Timeline

First Notice to Proceed issued, November 2020 Proposed completion, March 2023

Status Challenges and Opportunities

The authority has shared publicly that it expects the generators to be placed in service by the first quarter of 2023 Monthly fuel savings, at current commodity prices, when the new Wartsila generators enter service are projected to be approximately $3.5 million per month, or $42 million per year. That savings represents an almost 25% reduction in the VIWAPA’s annual cost of fuel.

Measuring Progress

Project | Convenience Centers

VI Waste Management Authority | $17,887,880 82

VVIWMA will upgrade five existing bin sites, the St. John Transfer Station, and relocate its Black Point Hill location to Estate Bournefield. These projects are meant to mitigate the impacts of the 2017 hurricanes on VIWMA’s existing and overwhelmed solid waste collection system. Each center will have multiple collection areas, including bins, compactors, and sheds to segregate waste. The centers shall facilitate the implementation of the Authority’s waste diversion program. The proposed convenience centers will be located at Susannaberg in St John, Smith Bay, Red Hook and Bournefield in St. Thomas, and Concordia, Mon Bijou, and Cotton Valley in St. Croix.

VIWMA received legislative approval on zoning variances and leases needed for the Smith Bay, Red Hook, Concordia, Cotton Valley, Mon Bijou, and Susannaberg convenience centers. The Bournefield Center requires a lease from the VI Housing Authority. VIWMA owns the Smith Bay site and has sought acquisition of the adjacent property. Limited Notices to proceed were issued for the exempt activity under 24 CFR 58.34 (a) to allow for the preparation of the environmental reviews at the Smith Bay, Red Hook, Concordia, Cotton Valley, and Mon Bijou convenience. The projects are in the environmental assessment phase.

Timeline

Expenditures expected during the first quarter 2023. Project anticipated to be complete during the third quarter of 2024.

Status Challenges and Opportunities

VIHFA anticipates environmental concerns associated with the projects. The identified convenience center locations require enhanced ERR Tier 1/Coastal Zone Management (CZM) (Red Hook) and Flood Plain Management (Red Hook & Smith Bay). A thorough expedited environmental assessment will be conducted to address flood and CZM Tier 1, and other environmental mitigants.

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Measuring Progress

Program | Territory-wide Street Addressing Initiative

Office of the Lieutenant Governor | $5,300,000

The Street Address Project proposes to bring the territory into compliance with the established national and regional standards The Project objectives are (1) to finalize the street addressing grid and (2) to implement the Master Address Repository System (MARS). Project activities include (a) creating over 150,000 geo coded address points, (b) establishing names for all roadways in the territory, (c) erecting the street name signs, and (d) publishing the release of the MARS. The Office of the Lieutenant Governor’s GIS Division will maintain and administer the MARS.

HUD approved the Authorized Use of Grant Funds (AUGF) on July 18, 2022. The Program issued the First Notice to Proceed on August 18, 2022, to allow the solicitation process to start. An amended subrecipient agreement was issued to the Office of the Lieutenant Governor in October 2022 and distributed for execution.

Timeline

Pending the approval of the Third Substantial Amendment, the estimated project timeline is 40 months.

Status Challenges and Opportunities

The Project is pending the approval of the Third Substantial Amendment of the CDBG DR Action Plan. Creating a real time GPS map of the territory with actual street names will have a significant impact, as it ensures shorter response times and better communication with first responders about street locations

Measuring Progress

Project | Slope Stabilization Tanks

VI Water and Power Authority | $3,096,061

The Project proposes to reinforce natural barriers and to engineer new barriers to stabilize erosion and deterioration that was exacerbated as a result of the 2017 storms - at the hillsides supporting and surrounding three crucial tanks of the municipal water distribution system in the St. Thomas and St. John district.

The subrecipient agreement was executed. The project requires a soil survey and architectural and engineering designs. The Program will allow VIWAPA to submit for an exempted activity under 24 CFR 58.34 (a) and 24 CFR 58.35 (b) to allow the agency to develop/obtain necessary design/environmental assessments for the project. Pending the approval of the Third Substantial Amendment, after the full environmental review is conducted and the project will commence.

Timeline

Pending Third Substantial Amendment approval, the estimated project timeline is 30 months.

Status Challenges and Opportunities

Pending approval of the Third Substantial Amendment, VIHFA anticipates no environmental findings, followed by swift execution and implementation of the project.

Measuring Progress

Project | Charlotte Amalie and East Gregorie Channel Dredging

V I Port Authority | $23,925,224 89 ($249,288 60 Local Funds)

East Gregorie: The dredge of approximately 255,118 cubic yards from the entrance channel and WICO berth. The channel dredged to be 40ft below Mean Lowest Low Water. The WICO berth to be dredged 36 ft below MLLW. The turning basin to be dredged to 38 ft MLLW. The project activities to provide safe navigation by expanding navigational area in the sea basin and alongside the berthing dock. Additional keel to sea floor bed clearance to 40 ft.

Charlotte Amalie: The dredge of approximately 255,118 cubic yards from the entrance channel and WICO berth. The channel dredged to be 40ft below Mean Lowest Low Water. The WICO berth to be dredged 36 ft below MLLW. The turning basin to be dredged to 38 ft MLLW. The project activities to provide safe navigation by expanding navigational area in the sea basin and alongside the berthing dock. Additional keel to sea floor bed clearance to 40 ft.

Status

The project was deemed ineligible under economic revitalization and under infrastructure. A waiver request to HUD has been initiated in-house.

Timeline

18 months upon approval of the waiver.

Challenges and Opportunities

VIHFA awaits approval of a waiver allowing the Charlotte Amalie Harbor and Crown Bay/East Gregorie Channel port dredging projects to be considered eligible Public Facility and Improvements expenses that meet the national objective of urgent need. The approval of this waiver will allow port dredging as an economic activity and without the requirement to demonstrate individual low to moderate job documentation. Even with this allowance, the grant will serve 70% percent of low to moderate individuals within the Territory.

Measuring Progress

Project | Electric Power System Enhancement and Improvement

Federal Register | $67,063 000

The U.S. Virgin Islands Action Plan for Community Development Block Grant Disaster Recovery (CDBG DR) Funds for Electrical Power System Enhancement and Improvements (EPSEI) proposes the use of funds for specific projects and activities that provide enhancements and improvements to the territory's electrical power system. This Action Plan describes how projects will address unmet needs, which were determined by evaluating the damages to the system from 2017 Hurricanes Irma and Maria, risks to the system from future disasters, and costs of incorporating resilience features and mitigating risks from future disasters, in addition to (2) identifying needs not covered by other sources of funding.

Status

VIHFA has coordinated with local and federal stakeholders to develop the Electrical Grid Action plan for the territory’s additional allocation of $67 million in federal funds The stakeholders included VI WAPA, the Virgin Islands Energy Office, the Office of Disaster Recovery, the (USVI) Public Service Commission, the University of the Virgin Islands Green Technology Center, the Department of Energy, the Federal Emergency Management Agency and the Department of Housing and Urban Development. On September 15 and 20, the VIHFA convened two Pre Action Plan Public Hearings. An additional public hearing was convened on November 6, 2022, to announce the publishing of the drafted plan. Finally, on November 11, 2022, VIHFA published the draft of the Action Plan, thereby initiating the 45 day public comment period.

Timeline

VIHFA anticipates submission of the Action Plan for HUD’s approval at the end of year. The anticipated start date of program implementation is the second quarter of 2023.

Challenges and Opportunities

VIHFA and WAPA continue to actively participate in the TCP (Technical Coordination Participation) meetings, as per the Federal Register Notice. The coordination of the stakeholders and administration of the public comment period to ensure that robust participation and community awareness is ongoing. The Program is on course to submit the drafted action plan to HUD by December 30, 2022.

Again, we advocate for any opportunity for HUD to increase funding in support of the Electrical Grid, to ensure greater reliability and stability for the community.

MILESTONES Economic Revitalization

Identified towns of Charlotte Amalie, Christiansted, Frederiksted, Cruz Bay and Coral Bay as starting points for Neighborhood Revitalization Program, which seeks to rebuild historical areas and neighborhoods damaged by the September 2017 Hurricanes Irma and Maria. The program builds upon the momentum of the Vision 2020 program and includes a funding component for small business development.

Celebrated the graduation of nearly 200 trainees from the Skills for Today program, along with an additional 295 currently participating.

Investment in Tourism campaign o reintroduce the Virgin Islands to the global market following the 2020 pandemic yielded nearly $2 million in hotel revenue for the territory through 2,500 flight bookings within 6 months.

Revitalizing tourism is critical to job creation and expanding economic opportunities for small businesses throughout the Territory. In addition to maximizing the potential of local residents to secure jobs and contracts in the recovery efforts, the Territory will focus on ways to diversify the economy as a way to make the U.S, Virgin Islands more resilient to future economic shocks.

Measuring Progress

Program | Economic Revitalization

Project: Vision 2040 Plan | Virgin Islands Economic Development Authority $319,000

Vision 2040 is proposed as a 20 year long term strategic economic recovery and development plan, intended to foster an opportunity for the U.S. Virgin Islands to become one of the most prosperous and resilient economies. The project is geared toward conducting research to determine avenues for economic growth, job creation and wealth generation.

The VI Economic Development Authority contracted with Camoin Associates, Inc.

Status

The Vision 2040 Plan was released on March 30, 2021, for public dissemination. VIHFA is utilizing the plan for research and development of program activities for both disaster recover and mitigation One project that has been developed and is awaiting the approval of the Substantial Amendment #3 is the Neighborhood Revitalization

Timeline

Completed

Measuring Progress

Project | Skills for Today/ On-the-Job Training

Virgin Islands Department of Labor | $10,589,585

The project is providing training opportunities, including, but not limited to, the construction, hospitality, and culinary arts, for LMI residents in the Territory, by offering entry level training based on current labor market information. The goal is to train 640 individuals over two years, a portion of which includes employment for those participating in work-based learning. Funding consideration is $10 million in CDBG-DR funds.

Status

To date, 285 have enrolled in the National Center for Construction Education and Research construction training territory-wide, with 125 completing the program and receiving certificates. The number currently enrolled in on-the-job training programs (work-based learning) is 96. We are also excited to highlight that with the scheduled December 1 soft opening of the Westin Resort and Spa on St. Thomas (formerly Frenchman’s Reef), our Skills for Today participants have the opportunity to train the hotel staff in preparation and at no additional cost to the contract.

For the months of September and October 2022, core construction cohort #8 and #9 combined had forty five (45) participants who completed the NCCER courses and are preparing for NCCER examinations In October, the Skills for Today craft welding cohort #3 course had enrolled 25 eligible participants The culinary training currently has 22 enrollees

Timeline

The program began in June of 2021 and scheduled to end June of 2023, however may require an extension to 2024.

Challenges and Opportunities

The training program experienced slow enrollment to the various training programs. Together, both the VIHFA and VI Department of Labor increased inperson outreach within LMI neighborhoods and launched aggressive recruitment campaigns within local media outlets to increase eligible participants in the programs.

Based on initial slow progression of enrollment, a one-year extension may be necessary to complete training of all 640 eligible participants in the Skills for Today/On the Job Training program.

Measuring Progress

Project | Tourism Marketing Campaign

Virgin Islands Department of Tourism | $2,377,500

A tourism marketing campaign to showcase the U S Virgin Islands vast tourist assets as they come back online. Marketing initiatives targeted specific travel and tourism niches in which the U.S. Virgin Islands are known to be competitive, especially among U.S. Mainland residents. These niches include sports and adventure, MICE (meetings, incentives, conferences, and exhibitions) romance marketing (destination weddings, honeymoons, and vow renewals) and yachting.

Status

n May 19, 2022,the HUD waiver expired. On behalf of the Department of Tourism, VIHFA subsequently requested a continuation of the marketing campaign, and the HUD waiver was approved September 2022. The new waiver allows for the Department of Tourism to conclude activities associated with the disaster recovery tourism promotion in December 2022.

The campaign resulted in a little more than $350,000 in new hotel revenue through digital advertising, along with 773 flight bookings, $1.9 million in hotel bookings, and 2,491 flights booked through websites.

Timeline

This project will end on December 15, 2022.

Measuring Progress

Project | Neighborhood Revitalization

Historic Organizations, Profit, Non Profit, Public, Private Entities, Community Development Organizations | $14,032,915

The Neighborhood Revitalization Program consists of two eligible activities: the Building Façade and Streetscape Enhancement and Small Business and Entrepreneurship Technical Assistance Program. The Building Façade and Streetscape Enhancement Program will provide financial assistance in the form of forgivable loans to targeted projects located in traditional business districts, within a commercial, neighborhood retail or mixed-use zone area, that were affected by the September 2017 Hurricanes Irma and Maria.

Small Business and Entrepreneurship Technical Assistance Program (SBETA) will provide working recovery grants for small businesses and microenterprises that suffered physical and/or financial losses due to the 2017 Hurricanes. Additionally, a technical assistance program will also be developed to assist to support entrepreneurs. Technical assistance activities include but are not limited to development of business plan; financial management guidance; marketing, inventory, the development of a skilled workforce. A Notice of FundingAvailability (NOFA) will be implemented for this project.

Status

Pending HUD's approval of the Third Substantial Amendment

Timeline

Upon HUD's approval of the Third Substantial Amendment, the Neighborhood Revitalization Program's Notice of Funding Availability will be issued in January of 2023, with a selection of subrecipients anticipated by March 2023 and projects complete by March 2026.

Challenges and Opportunities

Timely approval of the Third Substantial Amendment from HUD. With each focus areas Charlotte Amalie, Cruz Bay, Coral Bay, Frederiksted and Christiansted classified as historic, much collaboration is required with the State Historic Preservation Office to preserve the cultural and structural integrity of our towns.

MILESTONES Public Services and Facilities

Public facilities serving the territory's most vulnerable are in need of immediate and longer term assistance to return to the level of repair they were before the storm. Few have been able to repair the structures with their own funds and all need improvements to make them more resilient for future disasters.

$3.9 million earmarked for Salvation Army of the Virgin Islands to renovate and reconstruct operational facilities on St. Thomas to increase capacity and serve more of the island’s vulnerable population.

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$2.9 million earmarked for the St. Croix Foundation for Community Development to renovate and retrofit the Alexander Theater to serve as a secondary emergency shelter and safe room during hurricane declarations and as a performing arts center/training space for local youth.

More than $14.7 million awarded to non-profit organizations on St. Thomas and St. Croix to provide supportive housing and sheltering, along with wrap around and counseling services for residents.

Measuring Progress

Program | Public Services and Facilities

Project: Sister Emma Cottage | Lutheran Social Services $2,879,800

Project will be replacing the existing Sister Emma Cottage serving children within the territory with disabilities. The project will be part of the Queen Louise Home for Children complex, located near the Town of Frederiksted The building will comprise of two symmetrical wings, which will house bedrooms: one for girls and one for boys Each wing will accommodate four (4) bedrooms, 4 children per room, housing a total of 16 childrenwith services centrally located in both wings.

Status

Sister Emma Cottage is currently within the final phase of VIHFA's environmental process, which, upon completion, will enable construction to follow shortly thereafter.

Timeline, Challenges, and Opportunities

Construction is anticipated to begin in the second quarter of 2023.

Measuring Progress

Project Notice of Funding Availability

Non-Profit, Public, Private Entities, Community Development Organizations | $14.2 million

On May 31, 2022, the Virgin Islands Housing Finance Authority (VIHFA) announced the availability of CDBG DR funding under the Public Services and Public Facilities (Special Needs Housing Program). Eligible applicants included entities who serve the vulnerable populations such as nonprofit organizations, government agencies, and NGOs. To ensure our non-profits have access to funding, the goal is to fund those entities that may have been affected by the hurricanes or were born from a need realized after the storms; ensuing this, $14.2 million in public services and special needs funding was made available

Status

The application submittal deadline was August 3, 2022 and applications were reviewed from various non profits. Nine (9) agencies were selected notice has been provided to all awardees.

Funding awards were recommended for:

·Caribbean Centers for Boys & Girls of the Virgin Islands: $200,000 to repair and renovate a retaining wall at the facility in Christiansted, St Croix that was damaged by Hurricanes Irma and Maria

Catholic Charities of the Virgin Islands: $400,000 for new construction of restrooms and showers at the Bethlehem Shelter facility on St. Thomas to increase capacity to serve more of the island’s vulnerable population.

·Project Promise: $95,000 to provide a comprehensive afterschool, support program for at risk youth, ages 10 18, in Christiansted, St Croix

Liberty Place: $1,000,000 to provide supportive housing and sheltering services to individuals and families experiencing homelessness. These services will be provided at the organization’s facility in Frederiksted, St Croix

·Meeting The needs of Our Community, MTOC (formerly Methodist Training and Outreach Center): $207,568 to provide counseling and support services to individuals experiencing post traumatic stress, mental health, and behavioral health issues as a result of Hurricanes Irma and Maria.

·Salvation Army of the Virgin Islands: $3,916,352 for renovation and new construction of the kitchen, classroom, and courtyard area and facility at their location on St Thomas to increase capacity to serve more of the island’s vulnerable population

St Croix Foundation for Community Development: $2,420,000 for renovation and retrofitting of the Alexander Theater to serve as a secondary emergency shelter and safe room during hurricane declarations and as a performing arts center and performing arts training/learning/production space for the youth, as well as a convening/conference space serving the public in Christiansted, St. Croix.

·St. Croix Foundation for Community Development: $1,184,895 for the development of a Nonprofit Co Working Space and Resilience facility to assist non profit organizations who provide critical public services to the community, including those serving the homeless population

St John Rescue: $170,000 to establish and operate a training center, providing Emergency Medical Technician and Emergency Medical Responder recertification classes, water safety and lifeguard programs and outreach on the island of St John

Timeline, Challenges and Opportunities

Preliminary environmental and compliance checks have been completed. Subrecipient agreements and projects contracts have been drafted and is currently under legal review. We anticipate Public Facilities Agreements to be executed December 2022 with work beginning in the second quarter of 2023 barring no environmental concerns

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