Legislature sets October 8 deadline for housing authority to release HUD records

The Virgin Islands Housing Finance Authority has blocked the Legislature's attempts to obtain records tied to a federal funding freeze, prompting housing committee chairman Sen. Marvin Blyden to issue a final compliance deadline of 5 p.m. Thursday, October 8.

Blyden sent a letter Friday to VIHFA Executive Director Derek Gabriel after the committee's initial requests went unanswered. The committee first sought documents on July 20 and made a second request on August 5. Gabriel was invited to testify on September 30 but did not appear, the agency citing confidentiality worries and the director's absence from the territory.

The underlying dispute centres on the U.S. Department of Housing and Urban Development's decision on July 20 to freeze funding to VIHFA. HUD pointed to widespread financial mismanagement, inadequate fraud controls, false certifications and improper payments. The federal agency also identified that VIHFA had claimed 6.2 million dollars in disaster-related expenses that FEMA had already covered, creating a duplication of benefits.

The Legislature's legal counsel weighed in with an opinion stating that VIHFA lacks a valid confidentiality justification to withhold the information. The counsel's view held that while certain protected material may be redacted, the mere presence of such material does not allow VIHFA to block entire documents or broad categories of records.

Blyden is demanding a comprehensive written response detailing every program, project, activity, grant and contractor touched or potentially touched by the suspension. The response must also cover the status of each initiative, how beneficiaries may be affected, where VIHFA stands on its appeal, what corrective steps have been taken, and all correspondence with HUD and other federal bodies.

In his letter, Blyden stated that this demand "constitutes the final opportunity for voluntary compliance." Should the agency miss the Thursday deadline, he said he will issue a subpoena to compel VIHFA officials and records under the Legislature's investigative powers.