Senators Urge Department of Property and Procurement to Address Rental Collections, Michelle Motel Eyesore with Urgency

The Senate Committee on Budget, Finance, and Appropriations called on the Department of Property and Procurement (DPP) to address urgent issues concerning rental collections and the state of the Michelle Motel during a budget hearing on Monday. The DPP sought approval for their $13.7 million general fund request, equivalent to last year's budgetary allocation.

Commissioner Nominee Lisa Alejandro outlined the department's plans for the funds, which will be utilized for the government's property insurance program, personnel costs for various positions, and operating expenses. Alejandro warned of the rising insurance costs due to the full value coverage requirements on all facilities repaired with FEMA funds.

Alejandro also highlighted the additional revenue generated from the department's rental activities through the business and commercial properties revolving fund, which is expected to total over $4.8 million in FY 2024. Despite understaffing, the department continues to make rental collections a part of its daily duties.

Yet, senators raised concerns over the deficit in the commercial property fund, which Senator Marvin Blyden pointed out as approximately $1.8 million. Budget Committee chair Senator Donna Frett-Gregory questioned the number of government leaseholders who aren't paying their rents, a collective debt of around $1.5 million.