LEGISLATORS ASSESS TERRITORY-WIDE DISASTER RECOVERY EFFORTS

ST. CROIX— The Committee on Disaster Recovery, Infrastructure, and Planning, chaired by Senator Marise C. James, convened at the Frits E. Lawaetz Legislative Conference Room to assess the progress of federal disaster assistance grants, infrastructure projects, and housing recovery initiatives. While states like Texas and Florida have experienced faster recoveries, due to their affluent tax base, robust economy and infrastructure as well as strong private public partnerships. Senator James highlighted that the Virgin Islands’ ongoing logistical challenges, socio-economic issues and aged infrastructure have delayed recovery efforts after two Category 5 hurricanes eight years ago.

Adrienne L. Williams-Octalien, Director of the Office of Disaster Recovery (ODR), reported that federal recovery obligations have grown significantly from $8 billion in 2019 to $23.7 billion. However, securing these funds involved lengthy negotiations, and only $3.8 billion has been spent to date. With the current spending rate of $500 million annually, full recovery could take another 20 years. To meet the 2035 deadline, annual expenditures must increase fourfold to $2 billion, requiring greater efficiency and faster project execution.

The Community Development Block Grant Disaster Recovery (CDBG-DR) program continues to support housing initiatives such as the EnVision Tomorrow program, which focuses on rebuilding storm-damaged homes and rental properties. Despite progress, delays related to permitting, applicant responsiveness, and rising construction costs persist. Of the 100 prioritized homes, 43 have been completed, and 101 are under construction. Local contractors have played a key role, securing 100 project awards, with an additional 55 homes slated for construction by March 2025. Beyond EnVision Tomorrow, $260 million has been allocated for public housing projects, including $15 million for emergency housing and $18.6 million for first-time homebuyer construction in Mount Pleasant (St. Croix) and Fortuna (St. Thomas).

To enhance infrastructure project efficiency, the Super Project Management Office (PMO), established in collaboration with Jacobs Solutions Inc., aims to improve coordination, eliminate bottlenecks, and centralize contractor oversight. As a result, infrastructure development has accelerated, with over 1,000 of the 1,900 planned projects completed, 57 shovel-ready, and 85 currently under construction.

Additionally, Virgin Islands Housing Finance Authority Executive Director Eugene Jones, Jr. reported that $315 million of the $1.1 billion grant allocation has been utilized, including a $542,000 reimbursement to ODR for mobilization costs and an additional $1.1 million pending release from HUD. In housing, $16.94 million has been disbursed for the Loveland 2 acquisition, and a $67.65 million CDBG Electrical Grid Grant is funding resilience projects across the territory.

Lawmakers emphasized the need for urgent action to accelerate spending and expedite project completion. Williams-Octalien stressed that while funding has increased, recovery efforts must intensify to meet the 2035 deadline.

Senators present included Marise C. James, Novelle E. Francis, Jr., Kurt A. Vialet, Dwayne M. DeGraff, Ray Fonseca, Avery L. Lewis, Hubert L. Frederick, Marvin A. Blyden, Angel L. Bolques, Jr., Clifford Joseph and Carla J. Joseph.

Press Contact: Africah N.T. Harrigan

EmAIL: aharrigan@legvi.org