ST. THOMAS, U.S. VIRGIN ISLANDS — The Committee on Housing, Transportation and Telecommunications, chaired by Senator Marvin A. Blyden, met at the Earle B. Ottley Legislative Hall to receive updates regarding solid waste and wastewater operations from the Virgin Islands Waste Management Authority. Legislators also examined the July 2026 U.S Housing and Urban Development suspension of federal disaster recovery funding in relation to the Virgin Islands Housing Finance Authority, with the intention of discussing the impact, future oversight, and risk-management strategies.
Senators first heard testimony from Hannibal “Mike” Ware, Executive Director of the Virgin Islands Waste Management Authority, who provided comprehensive updates on solid waste and wastewater operations. Director Ware reported that solid waste collection relies on house-to-house routes, public bins, and transfer stations, though services have faced delays and disruptions due to equipment failures, parts shortages, and a brief contractor payment interruption in October 2026. To address aging wastewater infrastructure dating back to the 1960s and 1970s leads to chronic blockings. After addressing specific areas with sewing complications including Frenchtown, Nadir, Cancryn, and Cruz Bay. The authority said that they have created specialized in-house crews to actively manage blockages, pump station repairs, and major sewer line collapses.
The Authority's federal capital portfolio encompasses approximately $3.526 billion in total awards, but progress on major projects, including landfill closures and convenience center developments, has been hindered by the Housing and Urban Development funding suspension. Furthermore, to comply with federal consent decrees and preserve disposal capacity at the Anguilla and Bovoni landfills, the agency is advancing green waste diversion efforts, mulching programs, and preparations to launch an air curtain incinerator.
Financially, the Authority faces pressure with roughly $41.3 million in accounts payable, overdue government allotments, and a gap between operating costs and current tipping-fee revenues. To establish a sustainable funding model, the agency is pursuing a proposed residential solid waste fee, a visitor environmental stewardship fee, and a transition to weight-based tipping fees once scales are fully repaired and calibrated. Finally, the Authority continues to address recruitment challenges to fill critical vacancies and manage ongoing union negotiations.
Chairman Blyden started discussion by showing several pictures of conditions deemed unfit at Bovoni’s landfill, including exposed wires and inoperable equipment. When questioned, the authority’s representation responded that the lines shown were dead. In regard to seemingly abandoned vehicles, the director of the plant stated they are down because of financial constraints and are attempting to repair them. She continued by saying that fixes are not as easy as they appear, and it is often difficult to get parts. Chairman Blyden expressed understanding and asked the authority to provide a list of inoperable equipment in need of repair. After continued questioning to the authority from senators, they ultimately stated that they are amid a deliberate culture change in hopes of more accountability, upgrading equipment, improving internal operations and financials, and taking responsibility for past shortcomings to rebuild public trust.
Derek Gabriel, Executive Director of the Virgin Islands Housing Finance Authority, presented testimony regarding the Department of Housing and Urban Development suspension imposed on July 20, 2026. While the active administrative appeal with HUD continues under legal guidance, Executive Director Gabriel detailed the operational impacts, distinguishing between restricted actions and pre-existing projects permitted to continue, while highlighting institutional reforms aimed at strengthening oversight and compliance across the agency.
The suspension prohibits VIHFA from entering new sub-recipient agreements, contracts, change orders, modification, and amendments, except for no-cost extensions of time, meaning new federally funded projects cannot begin while the suspension remains active. However, federally funded projects with already-executed pre-suspension agreements, such as the $9.23 million Sister Emma Cottage project, the $2.25 million Royale Systems project, and the 70% complete $47.22 million D. Hamilton Jackson rehabilitation project, may continue subject to applicable limitations.
The suspension heavily impacts key initiatives, including the $195.05 million EnVision Tomorrow program which currently leaves over one hundred eligible homeowners waiting for permanent housing assistance. Other stalled projects awaiting sub-recipient agreement execution or review include the Virgin Islands Resource Conservation and Development Council Classroom Retrofitting Project, and the Family Resource Center Safe House Renovation Project. These restrictions extend beyond VIHFA by delaying affordable housing, affecting local contractors and their employees, improvements for nonprofits, and ultimately impacting the broader Territory.
Under executive leadership assumed in August 2026, VIHFA has initiated structural realignments, such as dual financial oversight for Disaster Recovery operations between the Chief Financial Officer and the Acting Chief Disaster Recovery Officer, to strengthen transparency. Additional internal controls include hiring a new Director of Procurement reporting directly to the Executive Director, expanding the Risk Management Division, establishing a comprehensive Fraud, Waste and Abuse Policy scheduled for board presentation in December 2026 alongside employee training sessions, and enhancing formal sub-recipient monitoring plans and escalation protocols. After senators shared their concerns during discussion rounds, Commissioner Gabriel asked for patience from the public as the authority attempts to rebuild and restore.
Senators present at the meeting included Marvin A. Blyden, Clifford A. Joseph, Novelle E. Francis Jr., Carla J. Joseph, Ray Fonseca, Avery L. Lewis, and Kurt A. Vialet.
The Division of Public Affairs remains committed to keeping the public informed on legislative developments. For more information, visit legvi.org .
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