HUD's inspector general rated the Virgin Islands Housing Finance Authority's fraud-risk management at or below the lowest desired maturity level; in July HUD suspended funding to the authority
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A March 24, 2026 audit (2026-FW-1002) by the U.S. Department of Housing and Urban Development's Office of Inspector General found that the Virgin Islands Housing Finance Authority (VIHFA), a grantee of nearly $2 billion in disaster recovery and mitigation block grants after the 2017 hurricanes, lacks fraud risk management processes and a dedicated entity to lead them. On July 20, 2026, HUD suspended further funding to the authority; AP reported that HUD Secretary Scott Turner said the territory has spent $570 million of the $1.9 billion it received and that the authority may appeal by requesting a hearing. AP reports that HUD's investigation of the authority is ongoing. AP reported that the authority's director and spokesperson did not immediately respond.
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