USVI Public Records

As used in this chapter, unless otherwise provided or the context requires a different construction, application or meaning- "Authority" means the Virgin Islands Housing Finance Authority; "homestead" means a plot or plots of land improved by the building of a house or houses thereon; or a plot or plots of land for the building of a private home or homes; "resident family" is defined to mean a family who has been domiciled in the Virgin Islands for at least one year immediately prior to application for homestead land. "Zoning Administrator" means the Zoning Administrator as defined in title 29 Virgin Islands Code, section 235(a). History: Amended May 16, 1957, No. 160, § 56, Sess. L. 1957, p. 38; June 14, 1960, No. 615, § 3, Sess. L. 1960, p. 136; June 18, 1962, No. 903, § 2, Sess. L. 1962, p. 193; Apr. 1, 2008, No. 6973, § 3(a), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 3(a), Sess. L. 2021, p. 54.

Housing Finance Authority (a) In addition to any other powers conferred upon him by this chapter or other law, the Executive Director of the Virgin Islands Housing Finance Authority, with the approval of the Governor, and on behalf of the Government of the Virgin Islands, may- (1) pledge, obligate, mortgage or otherwise encumber land, property, revenues, and income acquired or received by the Government pursuant to this chapter; (2) for the purposes of this chapter, sell, transfer, lease or otherwise dispose of any property referred to in clause (1) of this subsection; (3) construct, maintain, and operate such facilities and improvements as he deems necessary; (4) enter into contracclause (1)rmalize and execute all instruments necessary or advisable in the exercise of the powers granted to him or the Government in carrying out the purposes of this chapter; (5) borrow money for any of the purposes of this chapter, and secure the repayment thereof by encumbering, mortgaging, selling, or pledging all or any of the land, property, revenues, income, or contracts referred to in clauses (1) and (4) of this subsection and clause (2) of subsection (b) of this section; (6) enter, upon notice to the owners or holclauses (1) and (4)tatives, on any land for the purpose of making surveys, studies, or investigations in regard to the nature, conditions and value of such land; (7) hold mortgages insured under the National Housing Act as security or as collateral or for any other purpose not inconsistent with the provisions of this chapter, National Housing Actions of the Federal Housing Commissioner; (8) subdivide, allot and re-allot designated government homestead areas in such manner as will provide for family-sized farms (giving due respect to topography and soil conditions and best land use), and for such other purposes as are conducive to the success of that type of homestead project; (9) distribute and improve government land designated by the Legislature or its predecessors for farming purposes, and administer such farm projects, including those existing on the effective date of this Code as well as those hereafter designated for such purposes; (10) have such surveys and maps as are necessary for the distribution and sale of government homestead areas; (11) subject to the provisions of this chapter, appraise and determine the selling price and the installments payable for each separate subdivision allotted under this chapter, basing such selling price in part upon (A) size, (B) topography, (C) accessibility to roads and water, and (D), with respect to the type of homesteads referred to in clause (8) of this subsection, fertility of the land; (12) receive applications for clause (8)d lots, and, subject to the provisions of this chapter, determine the eligibility requirements of purchasers under this chapter, and make allotments to such eligible and worthy applicants as he deems best able to make proper use of the land and fulfill the contract obligations incurred, giving due consideration, in selecting applicants, to character and, with respect to the type of homesteads referred to in clause (8) of this subsection, physical ability and industry; (13) reserve clause (8)ts of the government homestead areas or structures as should be used for roads, water courses, cisterns, catchment areas, dwellings, or for other purposes important to any project under this chapter; (14) develop the water supply of any government homestead area, and regulate the fair distribution of available water, first, among homesteaders, and second, among other needy persons in the neighborhood; (15) make such use of unallotted homestead land as he deems best; (16) with respect to the type of homesteads referred to in clause (8) of this subsection, require that purchasersclause (8) make proper and reasonable use of land contracted for in order that the purposes of land distribution for farming may be accomplished; (17) with respect to the type of homesteads referred to in clause (8) of this subsection, settle all disclause (8) boundaries, property rights and water rights which may arise with regard to any homestead plots; (18) make zoning regulations for building construction in any area acquired for the purposes of this chapter, and set minimum building costs in such area; (19) adopt, alter, amend, or repeal regulations to govern the Government's policies and activities in general in carrying out the purposes of this chapter and in exercising and discharging the powers and duties granted to and imposed on him by this chapter, which regulations or amendments thereof, after approval by the Governor, shall have the force of law; (20) engage such transportation, and take such other permissible steps as may be necessary to carry out the provisions and purposes of this chapter; (21) subdivide government homestead areas as designated by legislative enactment and as will best provide for the allotment and re-allotment of plots for the building of private homes and allot or re- allot such plots pursuant to the provisions of this chapter and the Executive Director of the Virgin Islands Housing Finance Authority shall effect the provisions of this subdivision (21) and of this chapter without regard to or subjection to the provisions of subchapter IV, chapter 3chapter 39, Virgin Islands Code; and (22) exchange land with the recipient or recipients of homestead land in any government homestead area for land in any other government homestead area on such terms and conditions deemed to be equitable. (b) The Executive Director of the Virgin Islands Housing Finance Authority, in the name of the Government of the Virgin Islands, shall- (1) perform or discharge all remaining duties or obligations required of, or incurred by, the former Municipal Land Authority of St. Thomas and St. John, or the former Homestead Commission of St. Croix, or any of their predecessors, or the Government, under any contracts or agreements executed or entered into by them under prior homestead and home loan laws; and (2) collect, enforce, or liquidate, according to their terms, all outstanding loans, agreements, or obligations granted to, entered into with, or incurred by, other persons under such prior laws. History: Amended May 16, 1957, No. 160, §§ 57, 58, Sess. L. 1957, p. 38; Mar. 29, 1966, No. 1647, § 2, Sess. L. 1966, p. 115; Nov. 13, 1968, No. 2358, Sess. L. 1968, Pt. II, p. 355; Apr. 1, 2008, No. 6973, § 3(b) (1), Sess. L. 2007, p. 182.

(a) Land for homesteads is declared to be a public use, and may be acquired by the Government by condemnation proceedings through the exercise of the power of eminent domain, or by purchase, cession, transfer, exchange, lease, inheritance, or donation. No lands so acquired or held by the Government for such purpose shall be sold to any one applicant. (b) The Governor, with the approval of the Legislature, may transfer to the jurisdiction of the Executive Director of the Virgin Islands Housing Finance Authority, for disposal according to the provisions of this chapter, any plot or plots of land presently owned or hereafter acquired by the Government of the Virgin Islands, if such plots are not needed for any other public purpose; Provided, That the Governor may, after advertising and submission to public bid, sell any plot or plots so owned or acquired by the Government and not transferred to the jurisdiction of the Executive Director of the Virgin Islands Housing Finance Authority and not needed for any public purpose. History: Amended May 16, 1957, No. 160, § 59, Sess. L. 1957, p. 39; Mar. 29, 1966, No. 1657, Sess. L. 1966, p. 121; Apr. 1, 2008, No. 6973, § 3(b)(1), Sess. L. 2007, p. 182.

History: Repealed. Aug. 16, 2021, No. 8465, § 13(a), Sess. L. 2021, p. 57.

Notwithstanding other provisions of law, veterans who qualify for purchase of homestead land under the provisions of this chapter shall not be required to make any payment of money at the time of the execution of a contract for the purchase of homestead land and for a period of 90 days thereafter, at which time a regular monthly or quarterly installment payment may be required pursuant to the terms of such contract. History: Added Apr. 28, 1960, No. 543, § 1, Sess. L. 1960, p. 45; amended June 25, 1970, No. 2765, § 2, Sess. L. 1970, p. 194.

The selling price determined under section 2(a)(11) of this title for land to be sold under this chapter shall be a sum of at least equal to the price paid for the land by the Government. History: Amended June 14, 1960, No. 615, § 4, Sess. L. 1960, p. 13.

All applicants for homestead lots shall be at least 18 years of age. Applications shall be made in writing to the Executive Director of the Virgin Islands Housing Finance Authority, stating the lot or lots required. Applications shall be indorsed by two persons of good repute. History: Amended May 16, 1957, No. 160, § 61, Sess. L. 1957, p. 39; May 26, 1971, No. 3044, § 1, Sess. L. 1971, p. 174; Apr. 1, 2008, No. 6973, § 3(b)(1), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 3(b), Sess. L. 2021, p. 55.

No applicant for a plot of land shall be considered eligible if such applicant (or the spouse of such applicant from whom the applicant is not legally separated) already owns a home (other than a superficiary house) or plot of land upon which a home may be constructed; and in no event shall an applicant be allotted more than one-half of 1 acre of land for construction of a home. No applicant having once been allotted a plot of land, for home construction, shall be considered eligible for any additional allotment of land. History: Added June 14, 1960, No. 615, § 2, Sess. L. 1960, p. 133; amended Sept. 18, 1967, No. 2052, Sess. L. 1967, p. 444; Sept. 10, 1973, No. 3479, Sess. L. 1973, p. 244; Apr. 1, 2008, No. 6973, § 3(b)(1), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 3(c)(1)-(3), Sess. L. 2021, p. 55.

In the name of the Government of the Virgin Islands, and with the approval of the Governor, the Executive Director of the Virgin Islands Housing Finance Authority shall issue contracts for the purchase and sale of homestead plots or issue deeds of conveyance either in fulfilment of a contract or as a cash sale transaction. Power is hereby delegated to the Executive Director of the Virgin Islands Housing Finance Authority to prescribe the terms and conditions of the contract of sale and purchase and deed of conveyance. As a standard for guidance of the Executive Director of the Virgin Islands Housing Finance Authority in drafting of the necessary documents, the following objectives are set forth and are to be complied with by the Executive Director of the Virgin Islands Housing Finance Authority depending upon the circumstances of the purchase: (1) A contract shall require payment by the purchaser within a period of 10 years with payment due monthly or quarterly and shall be so computed that each payment upon principal shall be equal to each other payment upon principal. Interest on the deferred balance of the purchase price shall be payable in addition to the principal installment. The deferred balance and balances of principal on the purchase contract shall bear simple interest at the rate of 4 percent per annum; (2) The formal documents of purchase either by contract or by deed shall require the purchaser to commence construction of a residence within 5 years after the date of the formal document; Provided, however, That the provisions of this subparagraph shall not apply to veterans of the Armed Forces of the United States or minors. In all cases where by reason of topography or other causes, the land is inaccessible from the public roads, the formal documents of purchase, either by contract or by deed, shall also require that the Government provide adequate access roads to the land; (3) In the case of a transaction by way of contract of purchase, the remedy of the Government for default of the purchaser or his successors whether voluntary or by operation of law as to any material element of the contract shall be by forfeiture of the interest of the purchaser. In the case of a transaction made by conveyance, the remedy of the Government for default as to a material element shall be by termination of his fee simple estate. This shall be done by appropriate provision in the deed of conveyance creating an estate of fee simple defeasible in the grantee, defeasible upon the happening of such event as in the discretion of the Executive Director of the Virgin Islands Housing Finance Authority is deemed appropriate in the carrying out of the purposes of this legislation; (4) Purchasers of allotted land under this program shall not, within a period of 25 years from the date of the document first vesting an interest of the purchaser in the land allotted, lease, sublease, sell or transfer by gift or otherwise the land involved without the prior written consent of the Executive Director of the Virgin Islands Housing Finance Authority. The foregoing restraints upon alienation shall not be construed to apply to a devise or other transfers by operation of law brought about by reason of the death of the purchaser; (5) In the event of the termination of the interest of a contract purchaser or grantee, the amounts of principal paid by such person or his predecessors shall be returned by the Government less one-third thereof to compensate the Government for the administrative expenses in administering this program; (6) All documents issued under this program shall give the Government a first priority option to repurchase the land allotted at the same purchase price plus the value of any improvements made thereon by the owner or his predecessors which increases the value of the real property; provided, however, that in the event the grantee shall not be satisfied with the valuation of improvements as determined by the Government, he shall give notice in writing thereof to the Government within 15 days of the receipt of such valuation, and the valuation shall be determined thereafter by three disinterested appraisers appointed by the Superior Court of the Virgin Islands upon application of either the Government or grantee or both, which valuation shall be final and binding on both parties; provided, further, and notwithstanding any other law, veteran owned land under the provisions of this chapter, shall be transferred back into the homestead provisions of this chapter for sale to other veterans in instances where the land is being attached for the nonpayment of property taxes as provided under Title 33, Chapter 89, of this code. (7) The Executive Director of the Virgin Islands Housing Finance Authority shall provide in the contracts of purchase that a default shall not be deemed material or substantial where payments thereon are delinquent for a total of less than 6 months. The Executive Director of the Virgin Islands Housing Finance Authority shall likewise have the power by appropriate contract provision to allow prepayment of the installments with the attendant saving of interest. The Executive Director of the Virgin Islands Housing Finance Authority may likewise insert in the contract of purchase customary contractual provisions which in his judgment are advisable. (8) The Executive Director of the Virgin Islands Housing Finance Authority is authorized to waive any or all of the restraints upon alienation contained in this section and waive the penalty of reverter for non- performance of the conditions set forth in Title 21, section 7, subsections 2 and 7 and regulations or rules promulgated with respect to reverter, that he deems necessary for a purchaser to obtain a Veterans Administration Direct Loan (38 U.S.C. §1811). Any such waiver shall be executed by the Executive Director of the Virgin Islands Housing Finance Authority in the name of the Government of the Virgin Islands at the time of the granting of a direct loan to the purchaser by the Veterans Administration. (9) The Executive Director of the Virgin Islands Housing Finance Authority shall periodically inspect homestead plots sold or conveyed pursuant to this chapter to determine if the purchaser is in full compliance with the provisions of this chapter and the terms and conditions of the purchasers' contract or deed of conveyance. A record of such inspections shall be maintained and purchasers who are not in compliance shall be notified in writing by the Executive Director of the Virgin Islands Housing Finance Authority. During the month of the fourth anniversary of the date of the formal documents of purchase by contract or deed on homestead plots allotted for the construction of a residence the Executive Director of the Virgin Islands Housing Finance Authority shall inspect such homestead plot to determine if the purchaser has commenced construction. If he has not, the Executive Director of the Virgin Islands Housing Finance Authority shall notify the purchaser in writing that he has one year remaining to commence construction and further advise the purchaser of the consequences of failure to commence construction within 5 years after the date of the formal documents of purchase. History: Added June 14, 1960, No. 615, § 2, Sess. L. 1960, p. 133; June 18, 1962, No. 903, § 2, Sess. L. 1962, p. 193; amended Oct. 29, 1970, No. 2863, Sess. L. 1970, p. 351; Aug. 4, 1971, No. 3099, §§ 1, 3, Sess. L. 1971, p. 323; July 22, 1994, No. 5999, § 4, Sess. L. 1994, p. 127; June 18, 1996, No. 6109, § 5, Sess. L. 1996, p. 51; Apr. 1, 2008, No. 6973, § 3(b)(1), (2), (e), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 3(d), Sess. L. 2021, p. 55.

History: Repealed. June 14, 1960, No. 615 § 1, Sess. L. 1960, p. 133.

Use; Disbursements (a) The Homestead and Home Loan Fund, heretofore created for the purpose of assisting qualified applicants with purchasing land for home construction, construction costs of building a house or to purchase a house to be used as a primary residence in St. Croix, St. Thomas and St. John and related purposes authorized by laws in force prior to the effective date of this Code, is continued, and shall be expended throughout the Virgin Islands for such purposes as the processing of mortgages and administration of the fund. There shall be deposited into the fund all monies, bonds and other sureties which may be appropriated by the Legislature for such purposes or which may be acquired by gift or otherwise. All funds derived from the sale of land, interest on loans, or any other income shall be covered into the Homestead and Home Loan Fund. (b) All monies pertaining to the Homestead and Home Loan Fund shall be disbursed by the Commissioner of Finance according to the provisions of this chapter. (c) Individuals who qualify for a Rural Development Loan or a Veterans Administrative Loan are not eligible for programs administered through the Homestead and Home Loan Fund. History: Amended Feb. 21, 2002, No. 6503, § 21, Sess. L. 2002, p. 273; Apr. 1, 2008, No. 6973, § 3(c), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 3(e)(1), (2), Sess. L. 2021, p. 55.

Applicants (a) Except as otherwise provided, the Executive Director of the Virgin Islands Housing Finance Authority shall receive applications for loans not in excess of $250,000 to any one person or family residing in the same house. The Executive Director of the Virgin Islands Housing Finance Authority shall receive such applications upon forms prepared by him, and his decisions as to the eligibility of applicants to obtain loans from the Homestead and Home Loan Fund, when not inconsistent with this chapter, shall be final. Each applicant for a loan shall submit a set of plans and specifications of the house as approved by the Department of Natural Resources. Loans may be granted by the Executive Director of the Virgin Islands Housing Finance Authority to every applicant who establishes that- (1) he is the head of the family and is responsible for its housing; (2) he owns no home or family homestead to which he has a fee simple title; (3) he owns in fee a plot of land on which to construct his home; and (4) he is a good credit risk. (b) Loans provided for under this program shall be used for the express purpose to: (1) purchase a house, including but not limited to a prefabricated house or manufactured house or any other housing structure that meets the current building code; (2) construct, improve, alter, repair or rehabilitate a home including cisterns, foundation slabs or retaining walls including block and/or wire fencing; (3) to purchase a plot of land on which to construct a home prefabricated house, manufactured house, or any other housing structure that meets the current building code. Once an applicant has met the eligibility requirements and funds are available for the purpose of granting loans to purchase land, the Virgin Islands Government, acting by and through the Executive Director of the Virgin Islands Housing Finance Authority, shall issue a commitment to the prospective purchaser to buy land not in excess of one half (1/2) acre. (c) Notwithstanding any other law, rule or regulation, no applicant shall be prohibited or restricted from participation in the Homestead and Home Loan Fund program as defined in this chapter solely as a result of his prior participation in a real estate acquisition, homeownership or mortgage program conducted under the auspices of the Virgin Islands Housing Finance Authority or any other government agency, if he or she is otherwise qualified under section 9(a) of this chapter. History: Amended May 16, 1957, No. 160, § 63, Sess. L. 1957, p. 39; June 14, 1960, No. 612, § 1, Sess. L. 1960, p. 125; June 2, 1961, No. 689, Sess. L. 1961, p. 42; July 22, 1994, No. 5999, §§ 2, 6, Sess. L. 1994, pp. 126, 128; Sept. 28, 2001, No. 6463, § 5(a), Sess. L. 2001, p. 269; Apr. 1, 2008, No. 6973, § 3(b)(1), (2), Sess. L. 2007, p. 182; May 14, 2012, No. 7356, § 1, Sess. L. 2012, p. 66; amended Aug. 16, 2021, No. 8465, § 4(a)(1)-(4), Sess. L. 2021, p. 55.

Payments (a) Except as otherwise provided, all loans referred to in section 9 of this title shall be made with interest at the rate not to exceed the 10-year Treasury Note Rate, and shall be payable in a period not exceeding 30 years. Loans for home purchases granted under this program shall be for a period not exceeding 30 years. Home improvement loans or loans for the purchase of land shall be for a period not exceeding 10 years, at the same interest rate. Interest on the loans shall begin to accrue 30 days prior to the date on which the first payment is due, or 1 year from the date on which any portion of the loan is made to the applicant, whichever date is earlier. (b) The Executive Director of the Virgin Islands Housing Finance Authority, for and on behalf of the Government of the Virgin Islands, shall hold a first or second priority mortgage upon each building constructed or being constructed under the provisions of this chapter until the loan and interest have been paid in full. The owner shall carry fire and hurricane insurance on the building. (c) After a loan has been approved by the Executive Director of the Virgin Islands Housing Finance Authority, the monies shall be advanced to the borrower during construction at intervals to be determined by the Executive Director of the Virgin Islands Housing Finance Authority. The first payment on a loan granted for home construction shall be made within 60 days after the completion of the building. The first payment on a loan granted for the purchase of land or the purchase of a home shall be made within 60 days after the first advancement of monies is received by the borrower. The first payment on a loan granted for home improvement shall be made sixty 60 days after the completion of the home improvement project. Payment shall be made monthly. (d) For the purposes of this chapter, the Commissioner of Public Works shall determine when the building is completed and shall so notify the Commissioner of Finance in order that initial date of payment of the loan may be known. History: Amended May 16, 1957, No. 160, § 64, Sess. L. 1957, p. 40; June 14, 1960, No. 612, § 2, Sess. L. 1960, p. 125; July 22, 1994, No. 5999, § 3, Sess. L. 1994, p. 127; Sept. 28, 2001, No. 6463, § 5(b), Sess. L. 2001, p. 269; May 10, 2002, No. 6505, § 25, Sess. L. 2002, p. 288; Apr. 1, 2008, No. 6973, § 3(b)(1), Sess. L. 2007, p. 182; amended Aug. 16, 2021, No. 8465, § 4(b)(1)-(3), Sess. L. 2021, p. 56.

Commissioner Notwithstanding other provisions of this chapter, the Executive Director of the Virgin Islands Housing Finance Authority shall make loans for housing in accordance with the regulations of the Federal Housing Commissioner under all sections of the National Housing Act, as amended. In such cases the Executive Director of the Virgin Islands Housing Finance Authority shall comply with such regulations in the entire procedure of filing and processing applications, making of loans and the mortgaging of property. History: Amended May 16, 1957, No. 160, § 65, Sess. L. 1957, p. 40; Apr. 1, 2008, No. 6973, § 3(b)(1), Sess. L. 2007, p. 182.

to Repurchase (a) The Authority shall collect the installments and rental fees from the holders of land or homes and in like manner and under the same conditions and by the use of the same powers which are made use of in or for the collection of property taxes. (b) In the case of any contract for the sale of land for homestead purposes, as provided in this chapter, upon completion of the payments by the purchaser, the Authority shall execute a deed referred to in clause (7) of section 7 of this title shall be executed in the name of the Government of the Virgin Islands and delivered to the purchaser. The contents of the deed shall include a clause giving the Government of the Virgin Islands first option to purchase the land at a fair market value if the owner decides to sell within ten years after his receipt of the deed. History: Amended May 16, 1957, No. 160, § 66, Sess. L. 1957, p. 40; June 18, 1962, No. 903, § 2, Sess. L. 1962, p. 193; Apr. 1, 2008, No. 6973, § 3(d), (e), (g), Sess. L. 2007, pp. 182, 183.

Agreements; Definition (a) The Executive Director of the Virgin Islands Housing Finance Authority is authorized to consent to the mortgaging of homestead land to a lending institution for the purpose of securing a construction loan by the homestead allottee, which consent may include the following: (1) Subordinating the rights of the Government under this title in the mortgage for all purposes including foreclosure proceedings by the mortgagee in the event of default by the mortgagor. (2) Any other provision which, in the opinion of the Executive Director of the Virgin Islands Housing Finance Authority, would place a mortgage on homestead land in the same position, legally and businesswise, as a mortgage customarily used in the community covering non-homestead land. (b) Any subordination agreement under this section shall be made subject to the following conditions: (1) That the Executive Director of the Virgin Islands Housing Finance Authority finds that the total value of the land and any improvements thereon is sufficient to protect the interest of the Government as the holder of a second priority mortgage. (2) That the building or other improvements to be constructed on the homestead land be insured for a sum sufficient to pay off the mortgage given for such construction and the amount still due to the government on its mortgage, together with interest, and that such insurance policy be so written as to insure the first mortgagee and the Government, as their interests may appear. (c) For the purposes of this section homestead land shall be deemed to include any real property with respect to which a loan may be made under the provisions of section 9 of this title. History: Added June 12, 1961, No. 738, Sess. L. 1961, p. 85; amended Oct. 27, 1961, No. 782, § 1, Sess. L. 1961, p. 232; June 18, 1962, No. 903, § 2, Sess. L. 1962, p. 193; Apr. 1, 2008, No. 6973, § 3(b)(2), (e), Sess. L. 2007, p. 182.

The Virgin Islands Housing Finance Authority is authorized to devise a program to assist veterans of the Armed Forces of the United States who are natives of the Virgin Islands or permanent residents of the Virgin Islands to obtain loans made available to veterans by Federal law. The Virgin Islands Housing Finance Authority shall be empowered to execute contracts with any Federal agency or private parties in furtherance of the objectives of this program. History: Apr. 20, 1965, No. 1430, § 1, Sess. L. 1965, Pt. I, p. 177; amended Apr. 1, 2008, No. 6973, § 3(f) (1), (2), Sess. L. 2007, p. 183.

The Virgin Islands Housing Finance Authority shall acquire suitable parcels of land or it may designate parcels of land already under its jurisdiction, with the approval of the Governor and the Legislature, for exclusive allotment and sale, on terms, to qualified veterans who were born in the Virgin Islands or who entered the Armed Forces from the Virgin Islands, in connection with a housing program for veterans, under such rules and regulations as the Executive Director of the Virgin Islands Housing Finance Authority may prescribe. The Government of the Virgin Islands shall install water and sewer lines and provide adequate access roads to all parcels of land which are acquired pursuant to this section. History: Apr. 20, 1965, No. 1430, § 2, Sess. L. 1965, Pt. I, p. 177; amended Mar. 19, 1990, No. 5523, § 20(a), Sess. L. 1990, p. 68; Apr. 1, 2008, No. 6973, § 3(b)(1), (f)(2), Sess. L. 2007, pp. 182, 183.

The Executive Director of the Virgin Islands Housing Finance Authority may expend funds to provide loans to assist any veteran to- (1) purchase a house, including but not limited to a mobile home, house trailer, prefabricated house or manufactured house. (2) construct, improve, alter, repair or rehabilitate his home including cisterns, foundation slabs, or retaining walls. (3) to purchase a plot of land on which to construct his home or locate his mobile home or house trailer. The Executive Director of the Virgin Islands Housing Finance Authority shall issue rules and regulations pursuant to chapter 35 of Title 3 of this Code governing the terms and conditions of loans made pursuant to this subsection; Provided, however, that no loan to any one person under the provisions of this subsection shall exceed $220,000 and the interest rate on such loan shall not exceed six percent (6%); provided, further, that the Executive Director of the Virgin Islands Housing Finance Authority is authorized to request only one bank rejection from the veteran and may waive this requirement after an assessment of the veteran. Loans available under the provisions of subdivision (3) of this subchapter shall not exceed $50,000.00, and loans available under other provisions of this subchapter shall not exceed $220,000.00, provided however, that loans for improvement shall not exceed $40,000.00. Once an applicant has met the eligibility requirements and funds are available for the purpose of granting loans to purchase land, the Virgin Islands Government, acting by and through the Executive Director of the Virgin Islands Housing Finance Authority, shall issue a commitment to the prospective purchaser to buy land not in excess of one half (1/2 acre). History: Apr. 20, 1965, No. 1430, § 3, Sess. L. 1965, Pt. I, p. 177; amended Apr. 27, 1970, No. 2704, Sess. L. 1970, p. 86; Oct. 29, 1970, No. 2862, Sess. L. 1970, p. 350; Mar. 9, 1971, No. 2954, Sess. L. 1971, p. 22; Oct. 19, 1984, No. 5014, § 214(a), Sess. L. 1984, p. 365; Apr. 2, 1991, No. 5701, § 2, Sess. L. 1991, p. 7; Jan. 7, 1993, No. 5824, § 22, Sess. L. 1992, p. 177; July 22, 1994, No. 5999, § 4, Sess. L. 1994, p. 127; Dec. 20, 1994, No. 6040, § 1, Sess. L. 1994, p. 270; Sept. 28, 2001, No. 6463, § 4, Sess. L. 2001, p. 268; Apr. 1, 2008, No. 6973, § 3(b)(1), (2), (e), Sess. L. 2007, p. 182; amended Oct. 15, 2013, No. 7522, § 1, Sess. L. 2013, p. 125; amended Aug. 16, 2021, No. 8465, § 4(c), Sess. L. 2021, p. 56.

There is hereby authorized to be appropriated the sum of $1,000,000 annually from the Internal Revenue Matching Fund for five years to be spent exclusively for the Veterans Housing Loan Program. History: Apr. 20, 1965, No. 1430, § 4, Sess. L. 1965, Pt. I, p. 177; amended Oct. 19, 1984, No. 5014, § 214(b), Sess. L. 1984, p. 365.

The Legislature of the Virgin Islands finds and declares that: (a) There exists a serious shortage of residential low and moderate income housing in the Territory. (b) The lack of low and moderate income housing is injurious to the health, safety and welfare of the people of the Virgin Islands. (c) A steady program of uninterrupted housing construction for low and moderate income families will contribute substantially to economic stability in the Territory. (d) The sporadic availability of construction and mortgage money has contributed to the housing shortage. (e) It is the purpose of this chapter to provide a program to stimulate low and moderate income housing construction, rehabilitation and renovation and homeownership through the issuance of revenue bonds to obtain funds to be used for low interest mortgage loans to qualified purchasers of low and moderate income housing. (f) The programs, powers and authority established by this chapter are valid public undertakings within the meaning of section 8(b)(i) of the Revised Organic Act of the Virgin Islands. (g) This act shall be construed as cumulative authority for the exercise of the powers herein granted and shall not be construed to repeal any existing laws with respect thereto, it being the purpose and intention of this act to create full and complete additional and alternative methods for the exercise of such powers. The authority and powers conferred by, and the procedures set forth in, this act shall not be affected or limited by any other statute or by any charter, except the Revised Organic Act of the Virgin Islands, in particular section 8(b)(i) thereof, and the laws of the United States made applicable to the territory of the Virgin Islands, and except as otherwise herein provided. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended May 3, 1994, No. 5978, § 2(a), Sess. L. 1994, p. 63.

As used in this chapter, unless the context clearly requires otherwise, the following terms have the following meanings: (a) "Authority" means the Virgin Islands Housing Finance Authority created by section 103 of this chapter, and any reference to the government in this chapter shall be construed to mean the Authority; (b) "construction loan" means an interest-bearing loan to a qualified buyer or qualified borrower for the purpose of construction of low and moderate income housing; (c) "declaration" means a written finding by the Authority pursuant to the powers granted by this chapter; (d) "low and moderate income housing" means a residential structure or structures suitable for a person or persons of low and moderate income, as determined by the Authority pursuant to section 106(b) of this chapter. (e) "low interest" means a rate of interest less than the prevailing rate of interest charged by banks or other commercial lending institutions; (f) "mortgage loan or loan" means an interest-bearing loan to a qualified buyer or qualified borrower for the purpose of construction, rehabilitation, home improvement or purchase of low and moderate income housing, and secured by a mortgage, deed of trust or other security instrument on such property and constituting a first or second lien on residential real property and evidenced by a promissory note or other evidence of indebtedness. (g) "pledged assets" means the assets pledged to pay principal of, redemption premium, if any, and interest on the bonds or notes as provided in the declaration authorizing the bonds or notes; (h) "qualified buyer" means a person or persons meeting the criteria established by the Authority for low or moderate income and who: (1) is a resident of the Virgin Islands but preference to long-term residents of the Virgin Islands may be prescribed by the Authority in its rules; and (2) is purchasing property within the Territory of the Virgin Islands; (i) "qualified home improvement loan" means the financing- (1) of alterations, repairs, and improvements on or in connection with an existing residence by the owner thereof, but (2) only of such items as substantially protect or improve the basic liveability or energy efficiency of the property; (j) "qualified rehabilitation loan" means any owner financing provided in connection with a qualified rehabilitation of the owner's existing principal residence, or the acquisition of a different principal residence with respect to which there has been a qualified rehabilitation, but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation. For the purposes of this subsection (j), the term "qualified rehabilitation" means any rehabilitation of a building if: (1) there is a period of at least 20 years between the date on which the building was first used and the date on which the physical work on such rehabilitation begins, (2) 75 percent or more of the existing external walls of such building are retained in place as external walls in the rehabilitation process, and (3) the expenditures for such rehabilitation are 25 percent or more of the mortgagor's adjusted basis in the residence. For purposes of paragraph (3), the mortgagor's adjusted basis shall be determined as of the completion of the rehabilitation or, if later, the date on which the mortgagor acquires the residence; (k) "targeted area" means an area which is either a qualified census tract or an area of chronic economic distress. For the purposes of this subsection (k), the term "qualified census tract" means a census tract in which 70 percent or more of the resident families have income which is 80 percent or less of the territory- wide median family income, based on the most recent decennial census for which data are available. For the purposes of this subsection (k), the term "area of chronic economic distress" means an area designated by the Authority as chronically economically distressed and which is approved as such by the U.S. Secretaries of Treasury and Housing and Urban Development; (l) "bonds" and "notes" means the revenue bonds and notes authorized to be issued by section 104 of this chapter; (m) "loan" means a construction loan, mortgage loan, qualified home improvement loan, qualified rehabilitation loan, or other means of financing permitted under this chapter. (n) "qualified borrower" means a person, persons, corporation, partnership, association or other legal entity meeting the criteria established by the Authority for constructing or rehabilitating low and moderate income housing. (o) "Executive Director" means the Executive Director of the Virgin Islands Housing Finance Authority. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended Jan. 14, 1985, No. 5035, § 3(a)-(f), Sess. L. 1984, p. 442; May 3, 1994, No. 5978, § 2(b)-(e), Sess. L. 1994, p. 63; Apr. 1, 2008, No. 6973, § 4(a), Sess. L. 2007, p. 183.

There is hereby created a body corporate and politic constituting a public corporation and autonomous governmental instrumentality of the Government of the Virgin Islands by the name of the Virgin Islands Housing Finance Authority, hereinafter "Authority". The Authority consists of the Director of the Office of Management and Budget, the Zoning Administrator under Title 29, Section 235, and three individuals who are not employed by the Government of the Virgin Islands, whom the Governor shall appoint with the advice and consent of the Legislature. An individual appointed by the Governor shall serve a two-year term until the appointment and confirmation of a successor, and may be reappointed. Of the three appointed members, one must be a resident of the island of St. Croix, one must be a resident of the island of St. Thomas, and one must be a resident of the island of St. John. From among its members, the Authority shall elect a chairperson and such other officers as the members consider necessary. Nongovernment members shall receive $75 a day for each day or fraction thereof spent in the business of the Authority. All members must be reimbursed for necessary travel expenses. The Authority has the following specific powers in implementing the provisions of this chapter: (a) to hire such persons or contract with such institutions as the Authority deems necessary to administer the decisions of the Authority made pursuant to this chapter; (b) to make monies available to established lending institutions for mortgage loans, construction loans, qualified home improvement loans, and qualified rehabilitation loans to qualified buyers or qualified borrowers, on such terms and conditions as shall be determined by the Authority, consistent with the purpose of this chapter, as the Authority shall deem necessary in connection with providing such financing; (c) to make monies available to qualified buyers or qualified borrowers for the purchase, rehabilitation or home improvement of low and moderate income housing, to make monies available to established lending institutions for mortgage loans to qualified buyers to acquire and contract and enter into advance commitments to acquire, by assignment or otherwise, mortgages or participations at such purchase prices and upon such other terms and conditions as are consistent with the purposes of this chapter, to make and execute contracts for the origination, purchase and servicing of new or existing mortgage loans or to require the application of monies received from the sale of existing mortgage loans for the making of mortgage loans for residential purposes and to pay the reasonable value of services rendered under those contracts; (d) to make loans to lending institutions under terms and conditions which, in addition to other provisions as determined by the declaration, shall require the lending institutions to use substantially all of the net proceeds thereof, directly or indirectly, for the making of mortgages in an aggregate principal amount substantially equal to the amount of such net proceeds, to purchase securities from lending institutions and require that the proceeds derived by the lending institutions from the sale of such securities finance mortgage loans, to require that loans to or securities purchased from lending institutions be fully secured and collateralized, to require with respect to lending institutions that any required collateral be deposited with a bank or trust company approved for the deposit of Government funds, or to otherwise provide for satisfactory security or collateral for loans to lending institutions; (e) to borrow money and to issue negotiable bonds and notes and to fund or refund the same, to defray, in whole or n part, the costs of purchasing or funding the making of loans and home mortgages including, but not limited to, the costs of studies and surveys, insurance premiums, printing, legal, accounting and financial advisory fees incurred in connection with the issuance and sale of such bonds and notes, including reserve funds and accounts, and trustee, custodian and rating agency fees, interest on the bonds and notes for a period not exceeding two (2) years from their date; and to designate appropriate names for such bonds and notes, and to provide for the rights of the holders thereof; (f) to sell or otherwise dispose of any loan or mortgages, in whole or in part, or to loan sufficient funds to defray, in whole or in part, the costs of purchasing mortgages or participations therein, so that the revenues to be derived with respect to the mortgages, together with any insurance proceeds, reserve funds and accounts and earnings thereon, shall be designated to produce revenues and receipts at least sufficient to provide for the prompt payment at maturity of principal, interest and redemption premiums, if any, upon all bonds and notes issued to finance such costs; (g) to pledge pledged assets, notes or other property and any revenues and receipts to be received therefrom to the punctual payment of bonds and notes as issued hereunder and the interest and redemption premiums, if any, thereon; (h) to make rules and regulations consistent with the provisions of this chapter as are necessary or desirable to effectuate the purposes of this chapter, including but not limited to: (i) the time within which lending institutions must make commitments and disbursements for loans; (ii) the location and other characteristics of homes to be financed by loans; (iii) the terms and conditions of loans to be acquired; (iv) the amounts and types of insurance coverage required on homes, home mortgages, loans and bonds or notes; (v) the representations and warranties of lending institutions confirming compliance with such standards and requirements; (vi) restrictions as to interest rates and other terms of loans or the return realized therefrom by lending institutions; (vii) the type and amount of collateral security to be provided to assure repayment of any loans from the government and to assure repayment of bonds and notes; (viii) any other matters related to the purchase of loans or the making of loans to lending institutions; and (ix) the terms and conditions of loans and all matters relating thereto; (i) to establish and revise from time to time and charge and collect fees and charges in connection with making, purchasing and servicing any of its loans, mortgage loans, notes, commitments and other evidence of indebtedness; (j) to employ financial advisors, engineers, attorneys, real estate counselors, appraisers and such other consultants and employees as may be required in the judgment of the Authority and to fix and pay their reasonable compensation and expenses from monies available to the Authority therefor; (k) to make, enter into and enforce all contracts, including contracts for the servicing of loans necessary, convenient or desirable for the performance of the powers under this chapter, including contracts with any person, firm, corporation, association, agency, governmental agency or other entity, and all Virgin Islands governmental agencies are hereby authorized to enter into contracts, and otherwise cooperate with the Authority to facilitate the purposes of this chapter; (l) to do all things necessary to establish and implement a mortgage credit certificate program under the United States Internal Revenue Code of 1954, as amended; (m) to do all things necessary to carry out its purposes and exercise the powers granted in this chapter; (n) to bid for the purchase of property upon which the government or another party for its benefits, hold a mortgage at any foreclosure or other sale, or acquire and take possession of any such property, subject to any contract with the holders of any of its obligations; (o) to procure insurance against any loss in connection with the property and other assets of the government, in such amounts and from such insurers as it deems desirable; (p) to insure mortgage payments of any mortgage upon such terms and conditions as the Authority may prescribe; (q) to establish such funds and accounts as may be necessary for furtherance of the purposes of this chapter, and to retain certified public accountants to audit the books maintained by the Authority with respect to this chapter and prepare financial statements on a regular and timely basis; (r) to invest any funds derived or to be applied in connection with the purposes set forth in this chapter not needed for immediate use or disbursement, including funds held in reserve, in obligations issued or guaranteed by the United States of America and in other obligations which are legal investments for savings banks in the territory and in time deposits or certificates of deposit, repurchase agreements or other similar banking arrangements secured in such manner as the Authority determines; (s) to sue and be sued with respect to any action taken pursuant to powers and authority granted by this chapter; (t) to impose and collect commitment fees from contractors for the reservation and allocation of bond proceeds for the permanent mortgage loan, loan or construction loan financing of qualified low and moderate income housing to be provided by the Authority under such terms and conditions as it may prescribe; (u) to authorize loans from the Contractors Commitment Fee Fund established by Title 33, section 3063, Virgin Islands Code, to contractors for the purpose of paying commitment fees for the reservation of an allocation of bond proceeds to be issued by the Authority, under such terms and conditions as the Authority may prescribe, with loan payments to be deposited into said Fund; Provided, however, That no such loan shall be made: (i) in an amount in excess of fifty percent (50%) of any required commitment fee; (ii) in an amount which, when added to the amounts of all other such loans outstanding to a particular contractor (including affiliates and related persons to such contractors), exceeds 20% of the total amount of all such loans outstanding to all contractors plus the balance in the Contractors Commitment Fee Fund; (iii) to any contractor not licensed to do business in the Virgin Islands; (iv) to any contractor who, on the effective date of this subsection, has entered into a contract or other agreement with the Government of the Virgin Islands, or any board, commission, agency or autonomous or semi-autonomous authority thereof, to provide, construct, build, or install, residential single- or multi-family dwellings for sale or resale to the public, or any qualifying members thereof; or (v) unless the qualified contractor guarantees in writing that he shall give preference in hiring to Virgin Islands resident workers who are qualified and available and have been residents of the Virgin Islands for two or more years and shall register any and all job vacancies with the Employment Service within the Virgin Islands Department of Labor; Provided, however, That should the qualified contractor demonstrate to the satisfaction of the Authority that all reasonable efforts have been made to offer positions to all qualified and available resident workers meeting said requirement and the qualified contractor requires additional manpower, then the requirements of this subsection are waived. (v) to acquire, convey, transfer, pledge, lease, hold and dispose of real and personal property for the purposes set forth in this chapter including, without limitations: (i) acquire or contract to acquire real or personal property, or any interest therein, on a temporary or permanent basis in the name of the Government by gift, purchase, transfer, foreclosure, lease or otherwise, including rights or easements in property; (ii) hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property or any interest therein; (iii) hold, sell, assign or otherwise dispose of any home mortgage interest owned by the Government or under its control, custody or in its possession; (iv) release or relinquish any right, title, claim, lien, interest, easement or demand, however acquired, including any equity or right of redemption in property foreclosed by it; (v) make any such disposition by public or private sale, with or without public bidding; (vi) operate, manage, lease, dispose of and otherwise deal with such property in such manner as may be necessary to protect the interest of the Government and the holders of its obligations; and (vii) mortgage real property to secure a loan made to a developer for the purpose of constructing housing on such real property. (w) to issue payroll checks to its employees and to make any and all deductions related to payroll as is required for the proper administration of its personnel functions; (x) administer the Community Development Block Grant Program authorized by the Department of Housing and Urban Development. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended Jan. 14, 1985, No. 5035, § 3(g), Sess. L. 1984, p. 442; Nov. 18, 1985, No. 5110, § 2, Sess. L. 1985, p. 162; Apr. 18, 1988, No. 5338, § 5, Sess. L. 1988, p. 134; Mar. 19, 1990, No. 5523, § 22, Sess. L. 1990, p. 70; Sept. 28, 1990, No. 5636, § 1(f), Sess. L. 1990, p. 346; May 3, 1994, No. 5978, § 2(f)-(n), Sess. L. 1994, p. 64; Oct. 26, 1999, No. 6295, § 7, Sess. L. 1999, p. 108; Apr. 1, 2008, No. 6973, § 4(b)(1), (2), Sess. L. 2007, pp. 183, 184.

The Authority shall obtain the approval of the Legislature for the use of any property in any manner; such approval shall be obtained by submitting, at a minimum of every three (3) years, an Affordable Housing Plan which addresses specific projects to be developed on real property of the Authority. The Affordable Housing Plan shall describe each project by including information on location, acreage, number of dwelling units, target income of the tenants or purchasers of units, estimated cost of construction, required subsidies, estimated date of commencement of construction and ancillary facilities to be planned as part of the affordable housing project. The Committee of Jurisdiction for Housing Issues of the Legislature of the Virgin Islands shall review the Affordable Housing Plan and shall approve or disapprove each specific project addressed therein. The Affordable Housing Plan shall be deemed approved on the 45th day after the date of submission to the Committee of Jurisdiction for Housing Issues of the Legislature of the Virgin Islands, unless the Authority receives notification of any disapproval by the Committee of Jurisdiction for Housing Issues of the Legislature of the Virgin Islands within the forty-five (45) days period. Projects which are approved as provided herein shall not be included in subsequent Affordable Housing Plans submitted by the Authority. History: Added Mar. 19, 1990, No. 5523, § 19(a), Sess. L. 1990, p. 68; amended May 3, 1994, No. 5978, § 2(o), Sess. L. 1994, p. 65; Apr. 1, 2008, No. 6973, § 4(c), Sess. L. 2007, p. 184.

(a) Notwithstanding any other provision of law to the contrary, the Authority shall authorize from time to time the sale by the Director of the Office of Management and Budget of bonds and notes of the Government of the Virgin Islands in such principal amounts as may be set forth in a declaration of the Authority as the Authority deems necessary to provide sufficient funds for achieving the purposes of this chapter; Provided, however, That the aggregate principal amount of bonds and notes that may be issued under this chapter shall not exceed $250,000,000 outstanding at any time. In computing the total amount of bonds and notes which may at any time be outstanding for any purpose under this chapter the amount of the outstanding bonds and notes retired or refunded or to be retired or refunded from the proceeds of the sale of new bonds and notes or by exchange of new bonds and notes shall be excluded. In computing the total amount of bonds and notes that may at any time be outstanding for any purpose under this chapter the amount of the outstanding bonds and notes that constitutes interest under the United States Internal Revenue Code of 1954, as amended, shall also be excluded. Any such bonds or notes may be separately secured in accordance with the pledge contained in the declaration authorizing such bonds or notes. The Director of the Office of Management and Budget is authorized and empowered to sell bonds and notes as authorized by the Authority. (b) The Authority shall have the power pursuant to declaration, from time to time, to issue (1) notes to renew notes and (2) bonds to pay notes, including the interest thereon, and (3) whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding for any of the purposes of this chapter. The refunding bonds may be exchanged for the bonds to be refunded or sold and the proceeds applied to the purchase, redemption or payment of such bonds. (c) The bonds and notes shall be issued after declaration of the Authority, shall be in such amounts, shall bear such date or dates and shall mature at such time or times not exceeding thirty (30) years from the date thereof as such declaration may provide. The bonds may be issued as serial bonds or as term bonds or as a combination thereof. The bonds and notes shall be in registered form, and shall bear interest, if any, at such rate or rates, be payable at such time, be in such denominations, carry such exchange, transfer ad registration privileges, be executed in such manner and by such officials of the Authority, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, as such declaration may provide. Such bonds and notes shall be sold by the Authority in accordance with the Revised Organic Act, either public or private, at such price or prices as the Authority shall determine. The declaration shall designate a trustee to make payment on the bonds and the interest thereon and to hold and invest any reserves and other funds and may name or determine the manner of selection of paying agents. (d) Any declaration authorizing bonds or notes or any issue thereof may contain provisions, which shall be a part of the contract or contracts with the holders thereof: (i) to pledge all or any part of the pledged assets, including the revenues or receipts derived by the Authority from the home mortgages, to the punctual payment of bonds or notes issued for such home mortgages, and interest thereon, and to covenant against thereafter pledging any such revenues or receipts to any other bonds or notes of the Authority for any other purpose, except as otherwise provided in the declaration with respect to the issuance of additional bonds or notes to be equally and ratably secured by a lien upon such pledged revenues and receipts; (ii) to covenant as to limitations on the use and purposes and disposition of the proceeds from the sale of such bonds or notes and the pledging of such proceeds to secure the bonds or notes or of any issue thereof; (iii) to covenant as to the rates or charges fixed in connection with the home mortgages for which such bonds or notes are to be issued and as to the use and disposition to be made thereof, including the maximum interest rate payable on any home mortgage or loan; (iv) to provide for the replacement of lost, destroyed, stolen or mutilated bonds or notes; (v) to provide limitations on the issuance of additional bonds or notes the terms upon which additional bonds or notes may be issued and secured and the refunding of outstanding or other bonds or notes; (vi) the procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds and notes the holders of which must consent thereto, and the manner in which such consent may be given; (vii) limitations on the amount of monies to be expended by the Authority for its operating expenses with respect to construction and home mortgage loans; (viii) vesting in a trustee or trustees, which may or may not be located within the territory, property, rights, powers and duties in trust as the Authority may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders or noteholders pursuant to this chapter and limiting or abrogating the right of the bondholders or noteholders to appoint a trustee under this chapter or limiting the rights, powers and duties of such trustee; (ix) to covenant to set aside or pay over reserves and sinking funds for such bonds or notes as to the regulation and disposition thereof; (x) to redeem such bonds or notes, and to covenant for their redemption and to provide the terms and conditions thereof; (xi) to covenant and prescribe as to what happenings or occurrences shall constitute "events of default" as to such bonds or notes and to provide for the rights and remedies of the holders of the bonds or notes in the event of such default, including the right to appointment of a receiver; (xii) to covenant as to the terms and conditions upon which any or all of such bonds or notes shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived; (xiii) to covenant as to the rights, liabilities, powers and duties arising upon the breach by the Authority of any covenant, conditions or obligations; (xiv) to vest in a trustee or trustees or custodian or custodians the right to receive all or any part of the revenues and receipts pledged and assigned to, or for the benefit of, the holder or holders of bonds or notes issued hereunder, and to hold, apply and dispose of the same, including the investment thereof, and the right to enforce any covenant made to secure or pay in relation to the bonds or notes; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees or custodian or custodians and limiting the liabilities thereof and describing what happenings or occurrences shall constitute evidence of default and prescribing the terms and conditions upon which such trustee or trustees or custodian or custodians or the holder or holders of bonds or notes of any specified amount or percentage of such bonds or notes may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate; (xv) to execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants and duties; (xvi) to make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to protect and secure such bonds or notes and the holders thereof, or in the discretion of the Authority, tend to make such bonds or notes more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein, it being the purpose hereof to give the Authority on behalf of the government power to do all things in the issuance of the bonds or notes and for their security. (e) Any pledge made by the Authority shall be valid and binding from the time when the pledge is made, and the revenues or property so pledged and thereafter received by the government shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the government, without regard to whether such parties have notice thereof. Neither the declaration nor any other instrument by which a pledge is created need be recorded. There shall be created in the declaration of the Authority a lien, by this chapter made a statutory lien, upon the pledged assets, to and in favor of the holders of such bonds and notes and any interest coupons appertaining thereto, which lien shall be a first lien upon such pledged assets. The pledged assets shall be and remain subject to the statutory lien until the payment in full of the principal of, redemption premium, if any, and interest on the bonds or notes unless the declaration of the Authority provides for earlier discharge of the lien by substitution of other security or unless the earlier discharge of the lien occurs in the process of enforcement, collection, liquidation or sale of any pledged assets, in which case the lien shall attach to the proceeds of such process. The statutory lien shall be construed to give the trustee or custodian acting on behalf of the holders or owners of a bond, note or coupon authority to compel the sale of home mortgage loans or investments the payment of which are pledged to the bonds or notes. (f) There shall be plainly stated on the face of each bond and note language to the effect: that it is issued under the provisions of this chapter; that it is a limited obligation and not a general obligation of the government; that it does not constitute a general obligation or an indebtedness or loan of credit of the government within any applicable statutory limitation or of the United States; that the principal of, redemption premium, if any, and interest on the bond or note are payable solely from pledged assets which shall be identified by reference to the home mortgage revenue bond program for which the bonds or notes are issued; and that the payment of the principal of, redemption premium, if any, and interest on the bond or note are secured by a statutory lien on the pledged assets. There shall be plainly stated on the face of each interest coupon language to the effect that the coupon is not a general obligation of the government and is payable solely from certain pledged assets set forth in the bond or note to which such coupon appertains. (g) Any declaration authorizing bonds or notes under this chapter shall provide that such bonds or notes shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and the regularity of their issuance. (h) Pending the preparation or delivery of the definitive bonds or notes, interim certificates or other temporary obligations may be issued by the Authority to the purchaser of said bonds or notes. Such interim certificates or other temporary obligations shall be in such form and contain such terms, conditions and provisions as the Authority may determine. (i) The validity of the authorization and issuance of the bonds or notes authorized under this chapter shall not be dependent on or affected in any way by proceedings relating to home mortgages for which the bonds or notes are issued. Bonds or notes issued under this chapter bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof any or all of the persons whose signatures appear thereon shall have ceased to be officers of the Authority. (j) All bonds and notes issued under the provisions of this chapter shall be limited obligations of the government payable solely out of the revenues and receipts derived from the pledged assets and the mortgages or from any notes or other obligations of lending institutions with respect to which such bonds or notes are issued. No holder of any bonds or notes issued under the provisions of this chapter shall have the right to compel any exercise of the taxing power of the government to pay the bonds or notes, or the interest or redemption premium, if any, thereon, and the bonds or notes shall not constitute a general obligation or an indebtedness or loan of credit of the government within the meaning of any applicable statutory limitation (except the limit set forth in subsection (a) hereof), nor shall the amount of the bonds be included in computing the net bonded indebtedness of the government for the purposes of debt limitations imposed by any statutory or charter provisions (except the limit set forth in subsection (a) hereof). No officer, employee or agent of the Authority or the government nor any person executing any bond or note or coupon appertaining thereto shall be liable personally or be subject to any personal liability or accountability by reason of the issuance thereof. (k) The bonds and notes shall have all the qualities of negotiable instruments under the laws of the Virgin Islands. The bonds and notes of the government issued pursuant to this chapter are hereby made securities in which all public officers and bodies of the territory and all public corporations and subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or in other obligations of the government, may properly and legally invest funds, including capital, in their control or belonging to them. The bonds and notes are also hereby made securities which may be deposited with and may be received by all public officers and bodies of the territory and all public corporations for any purpose of which the deposit of bonds or other obligations of the territory is now or may hereafter be authorized. (l) Pursuant to the purposes and provisions of this chapter, and in accordance with section 8(b) (i) of the Revised Organic Act of the Virgin Islands, as amended, all such bonds issued by the Authority pursuant to this chapter shall be exempt as to principal and interest from taxation by the Government of the United States, or by the government of the Virgin Islands, or by any State, Territory, or possession or by any political subdivision of any State, Territory, or possession, or by the District of Columbia. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended Dec. 27, 1983, No. 4883, § 1, Sess. L. 1983, p. 260; Jan. 14, 1985, No. 5035, § 4(a), (b), Sess. L. 1984, p. 443; May 3, 1994, No. 5978, § 2(p), Sess. L. 1994, p. 65.

Prior to or contemporaneous with the issuance of bonds or notes pursuant to this chapter, the Authority shall have found and determined by declaration that the findings of the Legislature as set forth in subsections (a) through (d) of section 101 of this chapter continue to exist and that the issuance of bonds or notes is intended to ameliorate such conditions. The declaration shall include such other information as the Authority may deem appropriate including, but not limited to, the following: (a) the qualifications and limitations on loans and mortgage loans to be financed with the proceeds of the bonds or notes and the manner, means and schedule of financing same, and the transferring, holding, insuring and collecting same: (b) any other uses of the proceeds permitted by this chapter; and (c) the qualifications of borrowers and buyers with respect to eligibility to receive mortgage loans and of the institutions with respect to originating and servicing loans, and the manner and time for receiving, processing, and accepting or rejecting applications for loans. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended May 3, 1994, No. 5978, § 2(q), (r), Sess. L. 1994, p. 65.

(a) By rules and regulations the Authority shall insure that no proceeds of bonds or notes issued pursuant to this chapter shall be used: (1) for purposes other than those which comply with the United StaUnited States Internal Revenue Code of 1954mended; (2) for loans unless such loans qualify pursuant to the provisions of this chapter; (3) for mortgage loans unless such loans are for the purchase, construction, rehabilitation or home improvement of low and moderate income housing. (b) The Authority shall determine what constitutes low and moderate income housing and the qualification of low and moderate income persons and households. (c) Through the establishment and maintenance of an official register, the Authority shall ensure that with respect to individual applicants for mortgage loans and loans under this chapter who are substantially equal in eligibility and credit risk shall be recipients of loan monies on a first-come, first-served basis, subject to applicable law. The official register shall be open for public inspection. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended Dec. 29, 1983, No. 4887, § 6, Sess. L. 1983, p. 273; Jan. 14, 1985, No. 5035, § 5(a)-(d), Sess. L. 1984, p. 444; May 3, 1994, No. 5978, § 2(t), Sess. L. 1994, p. 65; amended Aug. 16, 2021, No. 8465, § 5(a), Sess. L. 2021, p. 56.

The government does pledge to and agree with the holders of any bonds or notes issued pursuant to this chapter that the government will not limit or alter the rights hereby vested in it to fulfill the terms of any agreements made with the holders thereof, or in any way impair the rights and remedies of such holders until such bonds and notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The Authority is authorized to include this pledge and agreement of the government in any agreement with the holders of bonds or notes. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223.

The powers conferred by this chapter are in addition and supplemental to, and the limitations imposed by this chapter shall not affect, the powers conferred by any other general statute, special act, charter or ordinance of the Territory. Mortgage loan or loans may be acquired, purchased and financed, and bonds or notes may be issued under this chapter for such purposes, notwithstanding that any other general statute, special act, charter, resolution, ordinance or declaration may provide for the acquisition, purchase and financing of similar mortgage loan or loans or the issuance of bonds or notes for similar purposes, and without regard to the requirements, restrictions, limitations or other provisions contained in any other such law. It shall not be necessary to secure from any department, agency or officer of the government not named in this chapter, any approval or consent or any certificate or finding, for the issuance of bonds or notes hereunder or for any other reason, except such as are prescribed in this chapter or are required by the Revised Organic Act or the laws of the United States made applicable to the Virgin Islands. It is the intention that this chapter be self-effectuating and that the powers conferred upon the Authority by this chapter and the procedures set forth herein, including those as to the description of monies and property, shall not be affected, limited or restricted by any law enacted by the Legislature of the Virgin Islands. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended May 3, 1994, No. 5978, § 2(u), Sess. L. 1994, p. 66; amended Aug. 16, 2021, No. 8465, § 5(b), Sess. L. 2021, p. 56.

The provisions of this chapter shall be liberally construed to accomplish the purposes herein. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223; amended Jan. 14, 1985, No. 5035, § 6, Sess. L. 1984, p. 445.

The provisions of this act are severable, and if any of its provisions or any sentence, clause or paragraph shall be held invalid by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions hereof. History: Added Oct. 20, 1981, No. 4636, § 2, Sess. L. 1981, p. 223.

Board Powers to Be Undertaken By Housing Finance Authority (a) The Authority shall require its advisers and consultants, wherever possible and feasible, to utilize the services of a competent Virgin Islands firm to provide essential management or financial services for said advisers or consultants. The Authority may itself utilize the services of said firm in the issuance of tax exempt bonds, investments or other financial and management responsibilities relating to its programs. (b) The Governor shall, at the request of the Virgin Islands Housing Finance Authority and approval of the Legislature's Committee on Housing, transfer to said Authority, without cost, any real property owned by the Government of the Virgin Islands, which may be utilized for the housing programs of said Authority; Provided, That specific projects for which the transferred property may be used shall be presented to the Governor and the Legislature's Committee on Housing by the Authority for their prior approval. (c) In the absence of a board of directors for the Virgin Islands Urban Renewal Board to direct the various functions entrusted to said Board, the board of directors of the Virgin Islands Housing Finance Authority shall undertake all duties, powers and responsibilities of said Urban Renewal Board. Any decision by the Board pursuant to this section shall be approved by the Governor before it becomes final. History: Added Jan. 14, 1985, No. 5035, § 7, Sess. L. 1984, p. 445; amended Sept. 29, 2004, No. 6684, § 4, Sess. L. 2004, p. 165; Apr. 1, 2008, No. 6973, § 4(d), Sess. L. 2007, p. 184.

(a) No judgment shall be rendered against the Authority in excess of $25,000.00 in any suit or action against the Authority with respect to any injury or loss of property or personal injury or death which: (1) may be caused by the negligent or wrongful act or omission of any employee of the Authority while acting within the scope of his employment under circumstances where the Authority, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred; or (2) may occur in connection with the use of any property or facilities owned by the Authority. (b) The provisions of subsection (a) of this section shall not apply if the injury, loss of property or death is caused by the gross negligence of any employee of the Authority while acting within the scope of his employment. (c) The Authority consents to have the liability determined in accordance with the same rule of law as is applied to actions in the courts of the Virgin Islands against individuals and corporations. (d) Members of the Authority, while acting within the scope of their duties as members of the Authority, shall not be subject to any personal or civil liability resulting from the exercise of any purpose, duty or responsibility in their official capacity, unless the conduct of the member is determined by a court of competent jurisdiction to constitute willful wrongdoing or gross negligence. History: Added May 3, 1994, No. 5978, § 5, Sess. L. 1994, p. 68.

Cite as: 21 V.I.C. § 113, 114

(a) In addition to any other authority conferred by law, the Housing Finance Authority is authorized and directed to establish by regulation a mortgage subsidy program which meets the criteria of this section. (b) The subsidy program shall: (1) Serve buyers seeking a mortgage loan in an amount determined by regulation. (2) Provide a subsidy for all interest costs exceeding twelve percent. (3) Include a provision whereby the Authority will take an interest-bearing second mortgage to cover the cost of the subsidy payments, which second mortgage shall be due and payable upon sale of the property or upon discharge of any first mortgage lien. (4) Provide for repayment of the second mortgage according to a reasonable payment plan, if requested by the mortgagor. (5) Provide for refinancing of the existing first mortgage loan due the second mortgage loan if interest levels on new mortgages issued pursuant to this chapter drop below twelve percent for thirty days or more and resulting monthly payments would not exceed what the borrower would have paid when the initial loan was negotiated if interest rates had been twelve percent. (c) The Housing Finance Authority is hereby authorized and directed to maintain a separate and distinct fund consisting of all monies appropriated to it by the Legislature of the Virgin Islands. Sixty days before the end of each fiscal year the Housing Finance Authority shall provide the Legislature with a report of the disbursements from and credits to such fund, audited by a Certified Public Accountant. History: Added June 15, 1984, No. 4961, § 1, Sess. L. 1984, p. 174; amended Sept. 18, 2002, No. 6570, § 10, Sess. L. 2002, p. 533; Apr. 1, 2008, No. 6973, § 4(e), Sess. L. 2007, p. 184.

As used in this chapter, unless the context clearly indicates otherwise: (a) "Authority" means the Housing Finance Authority established under chapter 2 of this title; (b) "Executive Director" means the Executive Director of the Virgin Islands Housing Finance Authority; (c) "Town" means the towns of Charlotte Amalie, Christiansted, and Frederiksted as defined by section 81 through 86 of Title 1, Virgin Islands Code; (d) "Housing accommodation" means any building, structure or portion thereof which is designed to be and is occupied as the residence or home of one or more persons or families; (e) "Owner" means any person, firm or corporation having the legal or beneficial ownership of a housing accommodation or of a building or structure containing one or more housing accommodations; (f) "Rehabilitation" means the rehabilitation, improvement and repair of one or more housing accommodations and facilities incidental thereto; (g) "Cost of rehabilitation" means the sum total of the costs incurred by an owner and approved by the Executive Director as reasonable and necessary for carrying out the rehabilitation of a housing accommodation or accommodations, including, but not limited to, all costs of necessary studies, plans, surveys and specifications, architectural, legal, and engineering services, supplies, labor and all other services; and (h) "Financial institution" means any bank, savings and loan association, credit union, insurance company, or any individual, partnership, trust, association or corporation engaged in the business of making loans to finance the rehabilitation of housing accommodations. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383; amended Apr. 1, 2008, No. 6973, § 5(a), (b), Sess. L. 2007, p. 184.

Eligibility The Authority may designate any area of a town as a Code Enforcement and Rehabilitation Area, if it finds that: (a) the area is substandard or unsanitary; (b) a substantial proportion of the housing accommodations in the area is in a deteriorating or deteriorated condition, and substantially fails to conform to applicable housing codes, fire laws or health regulations; and (c) rehabilitation assistance under this chapter is needed to render housing accommodations adequate, safe and sanitary and to conform to applicable housing codes and fire laws. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

The Authority shall continue until terminated by law, except that it shall remain in existence so long as loans guaranteed by it pursuant to this chapter are outstanding. Upon the dissolution of the Authority, its rights, liabilities and assets shall pass to the Territory. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

The Authority shall have all the rights and powers necessary or desirable for carrying out the purposes of this chapter. In addition to any specific powers enumerated herein, the Authority may: (a) sue and be sued; (b) have a seal and alter it at will; (c) make contracts and other instruments; (d) make by-laws, rules and regulations governing its operation and the use of its property and facilities; (e) acquire, hold, mortgage, pledge and dispose of real or personal property; (f) appoint officers, agents and employees, prescribe their powers and duties and fix their compensation subject to chapter 5 of Title 3, Virgin Islands Code, and to appropriations; (g) invest any funds not required for immediate use or disbursement, including any funds held in reserve, in obligations of this Territory or the United States Government, or obligations, the principal and interest of which are guaranteed by this Territory or the United States Government; (h) agree to guarantee loans made by financial institutions to owners of housing accommodations and, in case of default by the owner, take action as may be required to protect the interest of the Authority; (i) accept any gifts, grants or loans of funds or property or financial or other aid of any form from the Virgin Islands Government or Federal government or any agency thereof or from any sources and to comply with the terms and conditions thereof not inconsistent with this chapter; and (j) engage the services of any department or agency of the executive branch on a contract basis for rendering staff or professional assistance, and engage the services of any private person, firm or corporation on a contract basis for rendering staff or professional assistance or advice. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

The property of the Authority and its income from operations shall be exempt from taxation. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

(a) Each department or agency of the executive branch shall render assistance and services as may be requested by the Authority in aid of its functions (b) The Authority shall file with the Governor and the Legislature within 90 days after the end of its fiscal year, a report of its operation with respect to this chapter, receipts and expenditures during the year, its assets and liabilities, including a schedule of outstanding guarantees, at the end of such year, and additional information as the Governor shall prescribe. This report shall be open to public inspection. (c) The Authority shall at least once every year contract with a private auditor to examine the books and accounts of the Authority with respect to this chapter and render a financial report to the Governor and the Legislature. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 388; Apr. 1, 2008, No. 6973, § 5(c), Sess. L. 2007, p. 184.

(a) The Authority may guarantee a loan made by a financial institution to an owner to finance the cost of rehabilitation of a housing accommodation or accommodations, subject to the requirements of this section. (b) This guaranty shall constitute an undertaking by the Authority to pay promptly to the holder of a guaranteed loan or loans, any installment of principal or interest, upon which the borrower is in default. (c) No guaranty shall be made by the Authority pursuant to this chapter unless: (1) the housing accommodation with respect to which the guaranty is made is located in an area designated by the Authority as a Code Enforcement and Rehabilitation Area pursuant to section 121 of this chapter; (2) the Executive Director certifies the owner is unable to secure the necessary funds for rehabilitation from ordinary commercial sources upon reasonable terms and conditions and that the loan with respect to which the guaranty is made is an acceptable risk, taking into consideration the need for the rehabilitation, the security available for the loan or loans, and the ability of the owner to repay the loan or loans; (3) the loan with respect to which the guaranty is made does not exceed, in the aggregate, ninety percent of the cost of rehabilitation of the housing accommodation; and (4) the Executive Director approves in advance all plans and specifications of the rehabilitation to be carried out. (d) Any loan or loans with respect to which a guaranty is made shall be repaid, with interest at a rate as may be agreed upon by the owner, the financial institution and the Authority, in periodic payments of principal and interest, within a period not greater than ten (10) years. The loan may also contain other conditions, not inconsistent with the provisions of this chapter as may be prescribed by the Authority by regulation, or as may be agreed upon by the owner, the financial institution, and the Authority. (e) The Executive Director shall by regulation prescribe for housing accommodations for which guaranties are made: (i) standards of repair, and (ii) schedules of maximum rent and rent increases. (f) So long as any guaranteed loan remains outstanding, the Authority may: (1) approve or disapprove in advance any sale by an owner of a housing accommodation or accommodations and the terms and conditions of the sale; and (2) approve or disapprove in advance all borrowing by an owner which relies on the housing accommodation as security from any person, firm or corporation. (g) If the Authority, pursuant to the terms of a guaranty, makes any payment upon a defaulted loan to the holder thereof, the Authority shall be subrogated to the rights of the holder. (h) The directors, officers and employees of the Authority shall not be subject to any personal liability on account of any guaranty made by the Authority. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383; amended Apr. 1, 2008, No. 6973, § 5(a), (d), Sess. L. 2007, p. 184.

The Authority shall not guarantee any loan pursuant to section 126 of this chapter, which causes the aggregate principal amount of the loans guaranteed by the Authority under this chapter to exceed $1,000,000. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

The Authority shall establish a special account, to be known as the Guaranty Reserve Account, and shall pay into this account all monies appropriated and made available by the Virgin Islands Government for the purposes of the account, all payments of principal and interest received pursuant to subsection (d) of section 127 of this chapter and other monies which may be made available for the purposes of the account from any other source. All monies held in the guaranty reserve account shall be used by the Authority to meet its liabilities on guarantees made by it pursuant to sections 127 and 128 of this chapter, and to pay administrative costs of the Authority in administering this chapter. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

(a) The Authority, on behalf of the Virgin Islands Government, may provide assistance to any financial institution with respect to any loan guaranteed by the Authority pursuant to this chapter. This assistance, subject to the limitations of this section, may be in amounts as are determined by the Authority to be necessary to enable the owner to afford the interest cost of the loan. (b) A contract for interest assistance shall constitute an undertaking by the Virgin Islands Government to grant to a holder of a guaranteed loan periodic supplements to the interest payable by the owner for a term of years not to exceed the term of the loan. (c) The amounts payable in any year under a contract for interest assistance, when added to the interest payable in that year by the owner upon the guaranteed loan, shall not exceed the maximum rate of interest which the financial institution could charge the owner under the laws of the Virgin Islands. (d) Any contract for interest assistance may also contain other conditions, not inconsistent with the provisions of this chapter, as may be prescribed by the Authority by regulation or as may be agreed upon by the owner, the financial institution and the Authority. (e) Payments of interest assistance shall be made directly to the holder of the guaranteed loan, shall not be subject to the control of the owner, and shall not constitute income to the owner for taxation or other purposes. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

(a) The Executive Director, with respect to any premises for which a guaranteed rehabilitation loan is made pursuant to this chapter, may require the owner to cause the premises to be vacated if he finds it necessary to have the premises vacated to proceed with the rehabilitation, not withstanding any other provision of law. (b) Any tenants who have been temporarily ordered to vacate the premises shall have the right of reinstatement therein after the rehabilitation has been completed. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383; amended Apr. 1, 2008, No. 6973, § 5(a), (d), Sess. L. 2007, p. 184.

The real property constituting or containing the housing accommodations with respect to which a guaranteed loan is made pursuant to this chapter shall be exempted from real property taxes to the extent of that portion of the value which represents an increase over the assessed value of the property immediately before the rehabilitation was commenced and is attributed to the rehabilitation. The tax exemptions shall continue during the period after completion of the rehabilitation so long as the loan or guaranty by the Authority shall remain outstanding except that the exemption shall not continue more than ten (10) years after the date of completion of rehabilitation. The Director of the Bureau of Internal Revenue is authorized and directed to issue regulations to effectuate this tax exemption provision. History: Added Oct. 30, 1984, No. 5020, Sess. L. 1984, p. 383.

This chapter shall be known as and designated the "Homeownership Act of 2004". History: Added Sept. 29, 2004, No. 6684, § 1, Sess. L. 2004, p. 161.

The Legislature hereby declares and finds that: (a) There exists a serious shortage of residential, moderate-income housing in the Territory; (b) The lack of moderate-income housing is injurious to the health, safety and welfare of the people of the Virgin Islands and retards the economic development of the people of the Virgin Islands; (c) A steady program of uninterrupted housing construction for moderate-income families will contribute substantially to foster economic stability in the Territory; (d) The sporadic availability in the past of construction and mortgage financing has contributed to the shortage of moderate housing and stunted the economic development of the people living in the Territory; (e) The scarce availability of affordable land for the purposes of moderate income housing has contributed mightily to the shortage of moderate-income housing in the Territory which is commensurate with the salaries of the residents of the Virgin Islands, and the scarcity of land has contributed to the rising cost of moderate housing in the Territory; (f) The Government of the Virgin Islands has in its possession thousands of acres of real property; (g) The Government of the Virgin Islands must increase its tax base in order to ensure the delivery of services to the residents of the Virgin Islands and to provide fair, adequate wages to the employees of the Government of the Virgin Islands; (h) The federal government and federal agencies, such as Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development, through their programs, such as the American Dream Commitment, Catch the Dream and America's Affordable Communities Initiative, have committed to providing mortgage funding to all Americans; (i) The Legislature of the Virgin Islands further finds that the Government of the Virgin Islands is owed between $80 and $120 million dollars in delinquent property taxes and that many families are in danger of losing their family land due to delinquent property taxes; (j) It is the purpose of this legislation to provide a program to stimulate both the economy and the moderate housing construction market of the Virgin Islands by the passage of this Act that is intended to build a minimum of 500 homes annually in the Virgin Islands for the next five years; (k) The cost of homes shall range from $60,000 to $180,000 for a medium cost of $120,000 to ensure that $60,000,000 are generated in home sales per year and $300,000,000 over the span of the next five years; (l) The distribution of the homes shall be 350 on St. Croix, 100 on St. Thomas, and 50 on St. John; and (m) The programs, powers and authority established by this chapter are valid public undertakings within the meaning of section 8(b)(i) of the Revised Organic Act of 1954. History: Added Sept. 29, 2004, No. 6684, § 1, Sess. L. 2004, p. 161.

(a) In addition to the provisions in title 33, section 2552 and 2494a, of this Code, an owner of real property in lieu of having the real property sold at public auction, may choose to convey the property in lieu of property taxes on any other contiguous real property of not less than one acre to the Government of the Virgin Islands if: (1) the tax lien is against not less than one acre of contiguous real property; and (2) the property taxes owed is equal to or less than the actual value of the property. (b) The owner of the real property in the Virgin Islands, may in exchange for conveying not fewer than three acres of contiguous real property located in the Virgin Islands, may receive a 20-year property tax abatement based on the actual value of the property, as determined under title 33, chapter 89, of this Code. (c) The real property conveyed to the Government, under the provisions of this section, shall be conveyed to the Virgin Islands Housing Finance Authority, established under this title, to carry out the provisions of this chapter. The Virgin Islands Housing Finance Authority shall also identify suitable government property for transfer and conveyance under the provisions of this chapter. (d) Notwithstanding any other law, all real property conveyed under this section and title 33, section 2494a, of this Code which is not less than one acre, shall be conveyed under the provisions of this chapter. History: Added Sept. 29, 2004, No. 6684, § 1, Sess. L. 2004, p. 162; amended Apr. 1, 2008, No. 6973, § 6, Sess. L. 2007, p. 185.

of Developers, Builders Or Contractors Under This Chapter (a) The Virgin Islands Housing Finance Authority, on behalf of the Government of the Virgin Islands, is authorized to contract with builders, contractors and developers and others, as necessary and appropriate, to finance, develop, acquire, construct, rehabilitate and manage homeownership as provided under this chapter. (b) Builders, contractors, developers, and others selected by the Virgin Islands Housing Finance Authority to provide services for the Government under this chapter shall not be deemed agents or employees of the Government of the Virgin Islands or the Authority and shall provide evidence of adequate personal liability, fire, casualty and other appropriate insurance to protect the interests of the Government and the Authority. They shall also be required to provide performance bonds and completion guarantees, or other forms of performance and completion assurances pursuant to written rules and regulations to minimize risks to the Government and the Authority in the event of their failure to perform adequately under their construction agreements. The developers shall also provide, to the Authority, a commitment fee that is at least equal to the amount of the stamp tax that would be due and payable under title 33, chapter 7, of this Code, if the property had been transferred to the developer. (c) In exchange for tax exemptions of excise taxes, and income taxes, on their profits equal to the costs of the placement of the infrastructure, the builder, contractor, developer, or others shall be required to: (1) employ, for the duration of the project, at least 90% of individuals who have resided in the Virgin Islands for not less than five years and as determined by the Virgin Islands Department of Labor; (2) provide wages to its employees which are consistent with the wages established by the Wage Board under title 24, of this Code; (3) install the ititle 24cture needed for the project, including but not limited to portable water lines, buried utility lines, roads, streetlights and fire hydrants; (4) install all homes with shutters in an amount as determined by the Authority; (5) for all developments over four (4) acres, provide a green space, a community center, and playgrounds; (6) provide appliances that are energy efficient and solar-powered water heaters; (7) provide designs that include a combination of single family homes, condominiums and townhouses; and (8) provide at least three (3) different home designs. History: Added Sept. 29, 2004, No. 6684, § 1, Sess. L. 2004, p. 163; amended Apr. 1, 2008, No. 6973, § 6, Sess. L. 2007, p. 185.

(a) The Virgin Islands Housing Finance Authority shall provide homeownership for individuals in accordance to rules and regulations established by the Authority first-time homeowners and have resided full time, at least nine (9) months out of every year, in the Virgin Islands for a period of not less than three (3) years. (b) The Virgin Islands Housing Finance Authority shall qualify all applicants for homeownership under this chapter and provide three choices of sites for each applicant. (c) No applicant shall be considered eligible under this section, if the Authority finds that the applicant, or the spouse of the applicant from whom the applicant has not been legally separated or divorced for a period of not less than five (5) years, already owns a home or a plot of real property within or outside of the Virgin Islands. (d) No applicant shall be eligible for more than one home under the provisions of this chapter or any other Government housing program as provided under this Code. (e) Neither the Authority, nor its Executive Director or employees, may waive any of the requirements under the provisions of this chapter. History: Added Sept. 29, 2004, No. 6684, § 1, Sess. L. 2004, p. 164; amended Apr. 1, 2008, No. 6973, § 6, Sess. L. 2007, p. 185; amended Aug. 16, 2021, No. 8465, § 6(1), (2), Sess. L. 2021, p. 56.

As used in this chapter, unless the text clearly requires otherwise: "Approved plan" means a plan approved by the U.S. Department of Housing and Urban Development under Section 5(h) of the Homeownership Program for public housing of the United States Housing Act of 1987, as amended, in the case of housing stock owned and managed by the Authority, and means a plan approved by the Governor under terms and conditions similar to plans approved by the U.S. Department of Housing and Urban Development, in the case of housing stock owned by the Government of the Virgin Islands and managed by the V.I. Department of Sports, Parks and Recreation. "Authority" means the Virgin Islands Housing Finance Authority. "Windfall profits" means all or a portion of the resale proceeds attributable to the purchase price discount (the fair market value at the rate of purchase from the Authority or the Department less the below market purchase price), but does not include any resale profit attributable to appreciation of the property or the value of improvements made thereto by the homeowner. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(a), Sess. L. 2007, p. 185; § 1.

It is the policy of the Government of the Virgin Islands that all tenants in good standing of the public housing projects of the Virgin Islands shall be entitled to purchase existing or future public housing units on favorable negotiated terms. Such purchase shall vest in the buyer all the rights and privileges of a homeowner, including the right to sell, lease, or transfer the property through inheritance. For qualifying buyers, the negotiated price may be as little as one dollar. The implementation of the policy set forth in this section shall be pursuant to the provisions and conditions of this chapter. This policy shall be executed by the Virgin Islands Housing Authority and the Virgin Islands Housing Finance Authority to the maximum extent feasible consistent with federal law and the provisions and conditions of this chapter. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(b), Sess. L. 2007, p. 185.

Unless otherwise prohibited by federal law, the following principles shall be applied in implementing the policy and requirements of this chapter: (a) The right to own property is a fundamental right of all citizens. (b) Homeownership generally promotes pride and encourages responsibility toward the property in the owner. (c) Tenants of public housing in the Virgin Islands have a right to be consulted and to participate in the development of a plan that will enable them to accrue equity in public housing stock and ultimately to purchase a unit of public housing. (d) No single pathway to homeownership need be adopted by all tenants of public housing; different purchase arrangements may be developed and followed by different groups of tenants. (e) No tenant may be forced to give up his rental units for purchase by another, and no tenant may be forced to participate in a home-purchase pathway or arrangement. (f) Public housing units subject to sale must be in good and habitable condition, free of storm damage or deterioration. New or renovated public housing units may be purchased under an approved pathway to homeownership. (g) The purchase price of a public housing unit may be less than fair market value and may be negotiated to reflect the purchaser's ability to buy. Qualifying buyers may purchase public housing units for as little as one dollar. (h) Tenants of public housing in good standing with the longest tenure shall have priority over tenants with less tenure. (i) Tenants have the right to free training in the rights and responsibilities of owning their own homes. (j) Tenants may accumulate credit toward the purchase of a unit of public housing through the performance of non-routine maintenance and improvements; i.e. "sweat" equity. (k) Monies realized through the sale of public housing units shall be invested in programs to provide replacement public housing in the territory. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73.

The Virgin Islands Housing Authority and the Virgin Islands Housing Finance Authority shall promote the sale of their respective housing stock to the tenants of public housing by developing and implementing homeownership plans. There may be one or more such plans, and the plans may be diversified to fit the individual needs of the prospective tenant-owners. Such plans shall be developed in consultation with an individual tenant-resident, an organized group of tenant residents, or a group of tenant residents who desire to organize for the purpose of purchasing public housing units. It is the purpose of this section to promote and require tenant involvement and participation in the full planning process for homeownership. It is the responsibility of the Authority to provide their respective tenants with the information needed to participate in the planning of a pathway to homeownership. A tenant or group of tenants may, at their option, elect to discontinue at any time the goal of purchasing a unit or units of public housing. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(b), Sess. L. 2007, p. 185.

The Virgin Islands Housing Finance Authority and the Virgin Islands Housing Authority shall provide their respective tenants with appropriate counseling and training for each step of implementation along a pathway to homeownership. The training shall include, but not be limited to, instruction in the meaning of terms and phrases ordinarily used in the financing and purchasing of a home. There shall be counseling in financing and maintenance responsibilities. An explanation shall be provided of the meaning of fee simple ownership or any other selected method of title, as well as the rights and responsibilities of condominium and cooperative entities. The Authority shall provide training and counseling to such tenant or group of tenants as requested in the consultation required in Section 153 of this chapter, if such request is relevant to the plan for homeownership. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(c), Sess. L. 2007, p. 185.

All housing stock of Virgin Islands Housing Finance Authority or the Virgin Islands Housing Authority may be sold to tenants under the terms and conditions of this chapter, provided that such stock is sold pursuant to a plan that is approved by the U. S. Department of Housing and Urban Development, in the case of the Authority. No property may be sold that is not in good and habitable condition. New units may be sold under an approved plan. Renovated or reconditioned units must have a remaining useful life that is sufficient to justify the purchase plan. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(d), Sess. L. 2007, p. 185.

Public housing stock may be sold to persons who meet the following eligibility requirements: (a) has been a tenant of public housing for not less than 30 days immediately prior to the sale; provided, however, that residents of public housing with the longest tenure shall be given priority in the sale of public housing units; (b) has made application for homeownership under an approved plan; (c) qualifies as a low-income family and has not purchased low or moderate income housing under this chapter or any other existing housing program available in the territory; (d) is current in all of their rental or lease obligations for a period of not less than six months prior to the conveyance of title; (e) has completed not less than 15 hours of instruction in the responsibilities of homeownership, which instruction has been provided without charge by the Authority or the Department; (f) has met minimum income requirements that will enable the homeowner to meet his financial obligations; and (g) shall be a first-time purchaser. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73.

An approved plan for conversion of public housing units to private ownership by the tenants of public housing may include any viable economic method of sale and transfer of title. The plan shall give a first priority preference to the current occupant of any unit offered for sale. No tenant of public housing shall be moved from the unit he currently occupies because such unit is declared available for sale, unless the occupant voluntarily elects to move to another unit. Under the terms of the Homeownership program of the United States Housing Act of 1937, as amended, units of public housing may be offered at less than fair market value to the tenants of public housing. The economic viability of an approved conversion plan need not include any requirement that the buyer or buyers repay part or all of the outstanding mortgage on the public housing units, if such mortgage or other form of debt is held by the Government of the United States, provided that the forgiveness of such debt is approved by the Government of the United States in its acceptance of the housing conversion plan. No debt of the Government of the Virgin Islands that is secured by the assets of the public housing units to be sold shall be forgiven or assumed without such security, if the forgiveness or the assumption undermines the bond rating of the Government of the Virgin Islands. Nothing in this chapter shall prohibit the sale or conveyance of property by the Authority to the tenants of public housing through approved housing purchase plans that include a first or second mortgage held by the Authority that is ultimately forgiven if the purchaser qualifies for such forgiveness under the terms contained in the approved plan. Such forgiveness may be conditioned on the purchaser meeting financial responsibilities for a term agreed upon, limiting the resale to qualified buyers, or prohibiting the resale for a period of time necessary to protect against windfall profits to the purchaser. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(e), Sess. L. 2007, p. 185.

If a unit of public housing is sold to an initial purchaser at less than fair market value, the homeownership plan shall include appropriate measures to preclude realization by the initial purchaser of windfall profits on resale of the property, provided, however that any restriction as to the time period on resale shall not exceed 20 years from the date of the conveyance of title. The sale of public housing is intended to benefit those tenants. It is not intended that an approved homeownership plan would allow developers or other outside buyers to profit from the favorable terms adopted for the tenant/purchasers of the units. The protection against windfall profits required by this section may be achieved by any method approved under the terms and conditions of the United States Housing Act, as amended, and any of the Rules and Regulations pertaining thereto. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Aug. 16, 2021, No. 8465, § 7, Sess. L. 2021, p. 56.

In order to insure the long-term success of this conversion housing program, a non-routine maintenance reserve shall be required for all multifamily properties sold under an approved homeownership plan pursuant to this chapter. The purpose of the reserve shall be to protect the interests of the homeowner and his property, including but not limited to, replacement costs, litigation expenses, and non-routine maintenance. The amounts set aside for this reserve shall take into account the ability of each individual homeowner to meet the reserve requirements. The terms of the reserve shall be included in the homeownership plan and shall be determined after consultation with the tenant/purchasers. History: Added July 1, 1997, No. 6111, § 1, Sess. L. 1996, p. 73.

It is recognized that not all tenants of public housing will qualify for home ownership. Some who qualify may elect not to purchase units of public housing. Additional public housing will be required in the future to replace the units sold to tenants. To meet the need, the Authority shall develop replacement plans. If necessary, a funding commitment shall be obtained from the U.S. Department of Housing and Urban Development or other source. All funds realized in the sale of public housing units in excess of the costs of the homeownership plans developed and approved pursuant to this chapter shall be committed to the purchase of replacement public housing units. History: Added July 1, 1996, No. 6111, § 1, Sess. L. 1996, p. 73; amended Apr. 1, 2008, No. 6973, § 7(f), Sess. L. 2007, p. 185.