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VI Housing Finance Authority faces questions over HOME funds, slow spenddown and first‑time buyer program
Summary
HFA officials told senators the agency has plans and budgets for remaining HOME and homeowners assistance funds but could not provide full details in the hearing; senators pressed why multi‑million dollar local first‑time buyer appropriations remain largely unspent and asked for written plans.
VI Housing Finance Authority officials told senators they have budgets for remaining homeowner assistance and HOME‑ARP funds and that subrecipient selection for HOME‑ARP is complete, but the agency did not present a public, itemized spend plan during the session. Senators repeatedly pressed the HFA about a $4.2 million remaining balance in a homeowners assistance allocation that must be obligated by September and asked for immediate written plans.
Janine Hector (VIHFA federal programs) explained program mechanics: HOME provides secondary financing with HUD maximum value limits that constrain eligible home prices and therefore project counts; subsidy is drawn as construction progresses. Eugene Jones (VIHFA executive director) said staff capacity and federal program rules have slowed ramp up. When asked, HFA said it would provide the committee with the detailed plan and KPIs for how leftover funds will be spent.
Committee members expressed frustration that some legislative line‑item appropriations intended for first‑time homebuyers remain largely unspent despite years elapsing. Senators asked whether funds could be reallocated, require legislative approval for reprogramming, and whether HFA had advertised programs sufficiently to reach eligible households. HFA said it conducts outreach through lenders, employer presentations and housing fairs and will waive homeownership counseling fees to remove barriers.
Why it matters: Senators want written spend plans and timelines before final appropriations are executed or reprogrammed, and nonprofits raised concerns about late payment of territorial allocations that affect shelter operations.
