The Billion-Dollar Breakdown: Inside VIHFA’s Decade of Mismanagement, Fraud, and Failed Recovery
Feb 2022
4.5 yrs
Led VIHFA through the critical first 4.5 years post-hurricane — the entire window when nearly all $2B was allocated. Launched EnVIsion Tomorrow in 2019. Faced constant criticism for slow pace on homeowner programs and ERAP. COO Darin Richardson's fraud scheme — the $4.5M lumber contract kickback — ran entirely during his tenure.
Apr 2024
2+ yrs interim
Held the interim role for over two years — an unusually long "temporary" tenure for an agency managing nearly $2B in federal funds. Both OIG Audits I and II landed during her watch. She is the named recipient of the July 20, 2026 HUD suspension letter and a named defendant in former COO Stephanie Berry's whistleblower lawsuit.
Feb 2026
<2 yrs
Recruited as "Mr. Fix It" from the Atlanta Housing Authority. Testified that VIHFA had spent $315M of $1.1B at departure. Resigned under legislative scrutiny of the LBJ housing project and Stephanie Berry's whistleblower lawsuit alleging he personally discouraged staff from documenting problems.
present
interim again
Returned to acting leadership after Jones' resignation. The Executive Director position remained vacant and was still being advertised as of March 2026 — five months before the HUD suspension landed. Now holds the 30-day window to submit VIHFA's written response.
COO Darin Richardson steers lumber storage contract to Island Services Group (ISG). As chair of VIHFA's bid evaluation committee, Richardson awards ISG a contract initially valued near $3M. ISG subcontracts essentially all work to D&S Trucking, owned by Davidson and Sasha Charlemagne.
Contract value amended three times, eventually exceeding $4.4M — a 50% inflation. $3.177M of VIHFA's $3.6M in payments passes through to D&S Trucking. Lumber sits in warehouses, largely unused.
ISG partner Morris Anselmi wires $107,000 to Richardson. Days later, Richardson formally recuses himself — but continues signing ISG checks. Uses $50,500 plus the $107,000 to purchase a property in St. Thomas.
Despite the lumber rotting in the tropical sun, VIHFA extends the ISG contract for another three years. No audit or corrective action triggered.
Richardson indicted. Davidson and Sasha Charlemagne separately indicted on fraud and false statement charges tied to $3.177M in CDBG-DR funds. Over $582,000 had already been paid before any contracted work began.
Richardson convicted on all counts: bank fraud, money laundering, making false statements, criminal conflict of interest. Sentenced to 36 months federal prison + 2 years supervised release. HUD states his conduct is legally imputed to VIHFA.
Richardson released pending Third Circuit appeal. The Charlemagne trial has not yet gone to verdict. HUD cites the entire scheme as a direct basis for VIHFA's suspension.
Former VIHFA COO alleges financial mismanagement, improper procurement, wrongful termination. Names VIHFA, Jones, and Clendinen as defendants.
VIHFA submitted vouchers to double-bill costs FEMA had already reimbursed at 90%. HUD warned VIHFA in 2019. VIHFA did it anyway in 2021–22.
HUD OIG is investigating potential offenses by VIHFA's officers, directors, and/or employees. Scope is under privilege. Suspension remains in effect.
| Program | Allocated | Result | Rating |
|---|---|---|---|
| EnVIsion Tomorrow — HRRP Launched 2019. 2,084 applications, 610 eligible. 30 homes completed as of Feb 2024. | $135M | ~72 completed | 16% |
| EnVIsion Tomorrow — RRRP Landlord program, up to $50K loan | $25M | Minimal | <5% |
| Multifamily Rental Rehab & New Construction Largest housing bucket in CDBG-DR | — | 319 of 1,643 | 19% |
| ISG Lumber Storage Contract Post-hurricane lumber for rehab — D&S Trucking subcontractor | $4.5M | Lumber rotted. $3.177M to Charlemagnes. | Fraud |
| PR1 Grid Resiliency Largest single electrical grid line item | $35.8M | $177,976 spent (May 2026) | <1% |
| FEMA Match Program OIG 2023: duplicate billing despite 2019 HUD warning | Various | $6.2M improperly billed | Improper |
| Homeowner Assistance Fund (HAF) Federal COVID-era program · Sept 2026 deadline | $8.5M | $4.2M unspent at Jones exit | ~51% |
| First-Time Homebuyers Act Legislature of the VI appropriation | $4M | "None of that money has been spent" — Jones, Feb 2026 | 0% |
| Public Facilities (CDBG-DR) Best-performing category | — | 477 of 572 projected | 83% |
| CDBG-DR Remaining Balance Grant expires September 30, 2029 | $749.6M | Unspent as of Jun 2025 | Active |
Senate Finance Committee receives FY2022 budget testimony. Senators press on slow project completion. VIHFA's FY2020 audit was still not complete. The agency managing $2B in federal funds was years behind on its own financial audits.
Senate Housing Committee receives EnVIsion Tomorrow update. Merchants Commercial Bank President testifies the bank had not closed a single mortgage using the VI Slice program since signing the MOA in March 2023 — eight months of zero closings.
Senate panel confronts low completion rates. ODR Director testifies EnVIsion Tomorrow had 2,084 applications, 610 eligible, 30 homes completed — five years after launch.
Jones testifies VIHFA has spent $315M of $1.1B. Sen. Carla Joseph questions FEMA de-obligation risk. ODR Director confirms the 10% local match was only reduced to 2% in February 2024 — six years after the hurricane money arrived.
Jones announces resignation at a Senate hearing. $4.2M in HAF funds face a September 2026 expiration deadline. Sen. Vialet presses Jones on the Legislature's $4M First-Time Homebuyers appropriation. Jones: "None of that money has been spent yet."
HUD suspension drops July 20, coinciding with the start of early voting. No formal Legislature oversight hearing has been convened on the suspension as of publication. Governor Bryan holds press briefing, calls action an overreach.
"It seems like much of an overreach from my perspective."
"I will be the first to say I've never been a big fan of the HFA."
"If we had $25 billion to do the recovery on day one, it might have been finished by now."
"I don't know if this is a political stunt today."
29% of $1.92B spent after 9 years — depriving residents of ~$1.3B
Match requirement delays; USVI had to fight FEMA for reimbursement "backwards"
Fraud risk "at or below lowest desired level" — anti-fraud activities absent or disorganized
"A lot of protocols have been put in place" — says issues were 2–3 years old and corrected
Richardson's criminal conduct legally imputed to VIHFA; no meaningful corrective action post-indictment
Did not directly address the legal imputation argument at the press briefing
Cites four OIG audits spanning 2016–2026 and ongoing OIG investigation as basis
"Why does Fox News in particular have it?" — suspects political motivation tied to early voting
VIHFA must submit a written hearing request to DEC-Docket@HUD.gov within 30 days of receiving the notice. The response must identify specific facts contradicting HUD's claims — a general denial is insufficient.
The suspension becomes final agency action — a permanent bar from procurement and nonprocurement transactions throughout the entire federal executive branch, not just HUD.
Already-allocated CDBG-DR funds — including the $749.6M remaining balance expiring September 30, 2029 — are not affected by the suspension. Only future federal transactions are barred.
Sources: HUD Suspension Letter (July 20, 2026) · OIG Audits 2016-AT-1001, 2023-FW-1002, 2023-FW-1003, 2026-FW-1002 · VI Consortium · St. Thomas Source · VI Daily News · Legislature of the VI · VI.gov · Questions or tips: signal@viiq.org
VIHFA and the Texas General Land Office (GLO) both received massive CDBG-DR allocations after the same 2017 hurricane season. Both agencies were tasked with the same job under the same federal rules. What happened next tells you everything about what leadership, accountability, and execution actually look like in disaster recovery.
2017–18
2018–19
2019–20
2020–21
2021–22
2022–23
2024–26
Texas GLO filed its action plan within weeks of receiving its allocation. VIHFA took months and launched EnVIsion Tomorrow two full years after funding arrived. In disaster recovery, the clock starts at the disaster, not when the bureaucracy is ready.
The GLO procured construction contractors before programming was finalized — building the pipeline in parallel, not in sequence. VIHFA spent years designing programs before a single contractor was on the ground. The result: homes started appearing in Texas within 18 months of funding.
The GLO published quarterly performance reports publicly with complete program-by-program data. Citizens, legislators, and HUD could see the numbers in real time. VIHFA's own annual audits were years behind — the agency was completing FY2020 audits in FY2022.
When the GLO's reimbursement program came in $3M under budget, that money went back to assist more applicants — not to consultants, not to administration. VIHFA's admin budget consumed 55% of its set-aside at a rate faster than the actual recovery spending.
The GLO had two commissioners over nine years — both with defined electoral accountability. VIHFA had four directors, two of them "interim" stints by the same person, with the ED post vacant at the moment of the federal suspension. No accountability, no urgency, no results.
The GLO completed its Harvey homeowner programs with zero fraud convictions. VIHFA's 2026 OIG audit found fraud risk "at or below the lowest desired level" with "anti-fraud activities absent or disorganized." One agency built controls into procurement. The other built them into the press release.
The federal government sent the same program, the same rules, and comparable funding to both Texas and the USVI after the same hurricane season. One state rebuilt more than 9,100 homes and completed its programs with zero fraud convictions and zero federal suspensions. The other completed 72 homes in nine years, produced a convicted federal criminal serving 36 months in prison, and was suspended by HUD for "blatant mismanagement."
The difference between those two outcomes is not the program. It is not the funding. It is not even the weather. It is leadership, accountability, and execution — three things that are entirely within the USVI government's control.
VIIQ observation
When Governor Bryan said "if we had $25 billion to do the recovery on day one, it might have been finished by now," he was making a math argument. The Texas GLO received $5.7 billion and completed its programs in seven years for more than 13,500 families. VIHFA received $1.92 billion and in nine years helped roughly 72 homeowner households while losing at least $4.5 million to fraud. The problem is not the money. The problem is what was done with it.