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COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE 06/17/2026-REPORTED OUT TO THE COMMITTEE ON RULES AND JUDICIARY 06/08/2026-AMENDED AND HELD IN COMMITTEE BILL NO. 36-0274 Thirty-Sixth Legislature of the Virgin Islands March 13, 2026 An act requiring the Virgin Islands Housing Finance Authority to pay compensation to the homeowners within the Lyndon B. Johnson Gardens community who have been required to vacate their homes as a result of the actions related to the demolition of properties owned by the Virgin Islands Housing Finance Authority and associated with the operations of the Virgin Islands Water and Power Authority and the Virgin Islands Waste Management Authority PROPOSED BY: Senators Clifford A. Joseph, Sr., Marise C. James, Novelle E. Francis, Jr., and Hubert L. Frederick Sponsor: Angel L. Bolques, Jr. and Kurt A. Vialet Co-sponsor: Ray Fonseca WHEREAS, the Government of the Virgin Islands, through actions related to the 1 demolition of properties owned by the Virgin Islands Housing Finance Authority and 2 associated with the operations of the Virgin Islands Water and Power Authority and the Virgin 3 Islands Waste Management Authority, has required the homeowners within the Lydon B. 4 Johnson (“LBJ Gardens community”) to vacate their primary residences; and 5 WHEREAS, displacement under these circumstances imposes substantial hardship and 6 requires the Government of the Virgin Islands to provide fair and adequate compensation and 7 replacement housing assistance; and 8 WHEREAS, such displacement constitutes a governmental taking or functional 9 equivalent thereof that prohibits the Government from benefiting from any reduction in 10 2 property value caused by its own project, hazard designation, demolition activity, or public 1 action; and 2 WHEREAS, many affected homeowners have resided in their homes for decades and 3 are mortgage-free; and 4 WHEREAS, the purpose of this act is to ensure full, fair, and constitutionally sound 5 compensation based on replacement value, not depressed market value; and 6 WHEREAS, this act establishes a fair, uniform, and transparent process to provide 7 settlement, relocation assistance, and replacement housing to eligible displaced owners; Now, 8 Therefore, 9 Be it enacted by the Legislature of the Virgin Islands: 10 SECTION 1. (a) For purposes of this act: 11 (1) “Comparable replacement residence” means a residential property that is 12 comparable in the number of bedrooms and any American With Disabilities Act 13 accessibility features. 14 (2) “Owner” means any natural person who holds legal title and ownership to 15 property in the Lyndon B. Johnson (“LBJ Gardens Community”). 16 (3) “LBJ Gardens Community” means the Lyndon B. Johnson Gardens, formerly 17 penitentiary land, Richmond Garden, Christiansted, St. Croix. 18 (4) “Replacement value” means the amount reasonably necessary to purchase, 19 rehabilitate, or construct a comparable replacement residence. 20 (5) “VIHFA” means the Virgin Islands Housing Finance Authority. 21 (b)(1) Subject to the replacement value payment limitations set forth in subsection (c), an 22 owner may elect one of the following options with respect to their LBJ Gardens Community 23 property: 24 (A) For properties with constructed homes: 25 3 (i) direct monetary payment of the replacement value; 1 (ii) VIHFA-funded purchase of a residence identified by the owner 2 as available on the open market; 3 (iii) VIHFA-funded rehabilitation of an existing VIHFA-owned 4 structure; or 5 (iv) VIHFA-funded construction of a new residence on VIHFA- 6 owned land. 7 (B) For vacant properties: 8 (i) direct monetary payment of the replacement value; or 9 (ii) a land swap of VIHFA owned subdivided property not greater 10 than 0.25 acres and not less than 0.18 acres. 11 (2) For purposes of subsection (b)(1)(A)(iii), an owner has the right to select the 12 specific property to be rehabilitated from among the inventory of existing VIHFA-owned 13 property. 14 (3) For purposes of subsection (b)(1)(A)(iv), an owner has the right to select a 15 specific home design from existing VIHFA-owned home design options. 16 (c)(1) The replacement value payment for an LBJ Gardens Community home is: 17 (A) 1-bedroom $300,000 18 (B) 2-bedrooms $350,000 19 (C) 3-bedrooms $400,000 20 (2) The replacement value payment for an LBJ Gardens Community vacant 21 property, with or without improvements, is $15,000. 22 (3) Notwithstanding paragraphs (1) or (2), the replacement value payment for a 23 property will be reduced if the property is subject to any liens or encumbrances. The 24 reduction will be equal to the payoff amount of the lien or encumbrance. 25 4 (d) An owner who elects the option in subsection (b), (1), (A), (ii), (iii) or (iv), must 1 also receive payment of any required earnest money deposit on behalf of an owner, which 2 deposit will be deducted from the replacement value payment. 3 SECTION 2. (a) Not later than 30 days after the effective date of this act, the VIHFA 4 shall obtain, in writing, the option choice from each owner as provided in section 1, subsection 5 (b) of this act. 6 (b) Not later than 30 days of an owner providing the VIHFA with their option choice, 7 the owner shall convey title to the property to the VIHFA, which deed must be held in escrow 8 until the owner vacates the property in accordance with the timelines in subsection (c). Failure 9 to convey title to the property voids any consideration under this act. 10 (c)(1) An owner shall vacate their LBJ Gardens Community property as follows: 11 (A) An owner who elects the option in section 1, subsection (b)(1)(A)(i) or 12 subsection (b)(1)(B)(i), shall vacate the property not later than 30 days after receipt 13 of the direct monetary payment from the VIHFA. 14 (B) An owner who elects the option in section 1, subsection (b)(1)(A)(ii), 15 shall vacate the property immediately upon the closing of the purchase of the 16 residence identified by the owner on the open market. 17 (C) An owner who elects the option in section 1, subsection (b)(1)(A)(iii) 18 or (iv), shall vacate the property not later than 30 days after notification from the 19 VIFHA that the property has obtained a certificate of occupancy. 20 (D) An owner who elects the option in section 1, subsection (b)(1)(B)(ii), 21 shall vacate the property not later than 30 days after VIFHA has deeded the 22 property to the owner. 23 5 (2) Not later than180 days of the VIHFA’s receipt of an owner’s option under 1 subsection (b)(1)(A)(i) or subsection (b)(1)(B)(i), the VIHFA shall make the direct 2 monetary payment in full to the owner. 3 SECTION 3. The VIHFA shall submit monthly reports to the President of the 4 Legislature detailing the following: 5 (a) number of direct replacement value payments made; 6 (b) number of owners who purchased homes; 7 (c) rehabilitation and construction progress; and 8 (d) any obstacles or issues pertaining to this act. 9 SECTION 4. (a) There is established in the Treasury of the Virgin Islands of the 10 Government of the Virgin Islands, a special fund to be designated the “LBJ Gardens Settlement 11 Fund” (“Fund”). The Commissioner of Finance shall maintain and provide for the 12 administration of the Fund as a separate and distinct fund in the Treasury and no funds therein 13 are available for expenditure except as provided by the Legislature of the Virgin Islands. The 14 Fund shall consist of all sums appropriated thereto from time to time by the Legislature. The 15 purpose of the Fund is to compensate the owners of the LBJ Gardens Community properties in 16 accordance with section 1 of this act. 17 (b) The Fund dissolves after the last owner of an LBJ Gardens Community property is 18 compensated. 19 SECTION 5. (a)(1) The sum of $3,000,000 is appropriated in the fiscal year ending 20 September 30, 2026, from the stamp tax owed, due or becoming due to the Virgin Islands 21 Housing Finance Authority under 33 V.I.C. § 130, to the LBJ Gardens Settlement Fund to 22 compensate the owners under section 1 of this act and for legal services as provided in 23 paragraph (2). 24 6 (2) The sum of $300,000 is allocated from the money appropriated in paragraph (1) for 1 the purpose of contracting with an attorney who is licensed to practice law in the Virgin Islands 2 and is a member of the Virgin Islands Bar Association and who regularly practices in the areas 3 of real estate and probate law. 4 (b)(1) The sum of $4,000,000 is appropriated in the fiscal year ending September 30, 5 2027, from the stamp tax owed, due or becoming due to the Virgin Islands Housing Finance 6 Authority under 33 V.I.C. § 130, to the LBJ Gardens Settlement Fund to compensate the 7 owners under section 1 of this act. 8 (2) The funds appropriated in paragraph (1) must be disbursed on October 1, 9 2026. 10 (c) The funds appropriated in subsections (a) and (b) remain available until expended 11 or until the last owner has been fully compensated, whichever date is earlier. 12 BILL SUMMARY 13 This bill requires the Virgin Islands Housing Finance Authority to pay compensation to 14 the homeowners within the LBJ Gardens community who have been required to vacate their 15 homes as a result of the actions related to the demolition of properties owned by the Virgin 16 Islands Finance Authority and associated with the operations of the Virgin Islands Water and 17 Power Authority and the Virgin Islands Waste Management Authority. The compensation 18 includes payments for a comparable replacement residence in addition to reasonable closing 19 costs, relocation costs, temporary housing expenses, earnest money deposits, and incidental 20 expenses reasonably related to the displacement. 21 BR26-1058/March 12, 2026/GC 22 ..\..\..\..\AMENDS\36th Legislature\JOSEPH, SR., CLIFFORD A\Amendment 36- 23 796\Amendment 36-796 - (REVISED I) DRAFTED ON YELLOW.docx 24