Editor’s note:
During an ongoing cascade of electrical outages in St. Thomas and St. John, Virgin Islands Water and Power Authority governing board members expressed concern in their Thursday meeting about funding delays from the Virgin Islands Housing Finance Authority. Board members said the delay impacted operations, vendor payments, and service reliability. Housing Finance Authority Executive Director Eugene Jones, Jr. wrote to the Source Monday with a rebuttal:
To Whom It May Concern:
Through this open letter, the Virgin Islands Housing Finance Authority (VIHFA) directly
addresses statements made by officials of the Virgin Islands Water and Power Authority
(WAPA) during its March 19, 2026, Governing Board meeting, as reported by the Virgin
Islands Source on March 27, 2026, regarding alleged delays in funding for infrastructure
projects.
The assertions being made grossly misrepresent the circumstances, facts, and status of
infrastructure projects and VIHFA’ s involvement, particularly with respect to their progress,
required processes, and associated payments. Moreover, claims that HUD funds administered through VIHFA have not been forthcoming due to bureaucratic delays are categorically false and reflect a last-ditch and disingenuous effort by the leadership of the utility, to deflect its responsibility by attempting to position the Authority as a scapegoat for its ongoing systemic shortcomings and deficiencies, including the inability to provide consistent power to the people of the Virgin Islands.
It is important to note that, to date, the Authority has disbursed more than $247 million to WAPA through its CDBG-DR and CDBG-MIT programs. This includes $78,642,284 for the Randolph Harley Power Plant Expansion Project, directly supporting power generation stability across the Territory. Additionally, the Authority is prepared to allocate a further $36 million to advance critical grid resiliency initiatives.
As of this communication, the following represents the factual status of processes, procedures, and payments associated with infrastructure projects funded by HUD through the Virgin Islands Housing Finance Authority and administered in coordination with the Virgin Islands Water and Power Authority and the Office of Disaster Recovery.
- There are no outstanding or pending payment requests in VIHFA’ s grant management system related to Wärtsilä or West Peak.
- On February 27, 2026, VIHFA program leads and leadership met with WAPA’s team and confirmed that there were no outstanding payments pending within our system.
- Six consultations with the Department of Planning and Natural Resources remain outstanding and are directly tied to key projects, including the Feeder 11 and 12 Rebuild, St. Thomas Substation BESS, Transformer Replacement Project, and Distribution Automated Devices. Completion of these consultations is required before VIHFA can finalize its environmental review and proceed with requesting authorization to use the Electrical Grid grant funds for project commencement.
- On August 8, 2025, VIHFA directed the Office of Disaster Recovery, which has programmatic oversight, to reassess West Peak Energy’s proposed amendment, align the budget with available line items, and revise the project scope so that the project is not deemed ineligible under HUD requirements. The Authority remains prepared to review the amendment upon receipt of the requested revisions.
The leadership and team at the Virgin Islands Housing Finance Authority fully recognize the urgency and importance of administering grant funds in a timely, efficient, and compliant manner. Moreover, we understand that behind every project, payment, and process are real people who rely on these investments for safe, reliable, and resilient infrastructure. We are deeply committed to advancing projects that directly impact the well-being and quality of life of the people of the Territory.
