With Only 6 Loans Closed Since Launch, EDA CEO Comes Under Pressure For VI Slice Program
Since May 2023, the VI Slice program has approved eight transactions, Economic Development Authority CEO Wayne Biggs Jr. told lawmakers during a Tuesday Senate hearing, data that left lawmakers unimpressed and questioning the program's viability.
2023-10-26 18:44:42 - VI News Staff
The Senate Committee on Housing, Transportation and Telecommunications hearing was attended by representatives from the EDA and the VI Housing Finance Authority, and was held to provide an update on the struggling program.
The eight transactions total almost $615,000 in gap financing, Mr. Biggs saide, with six loans closed fully and the remaining two on track to close before the end of this month. Two-thirds of the business originated with Capital Mortgage Texas, with the remaining two being originated by the U.S. Department of Agriculture Urban Renewal and First Bank respectively.
This modest achievement was not enough to allay the skepticism of legislators, who expressed doubts about the program. “I’m not trying to be disrespectful, but the VI Slice program ain’t working,” remarked Senator Dwayne DeGraff during questioning.
The EDA CEO thinks otherwise. “I disagree, respectfully,” Mr. Biggs responded. “Tell that to the eight families who got an average $76,000 that are now in a home. The program is designed to assist and it is assisting people who qualify,” he argued.
One major challenge that was revealed during the hearing, however, was getting sufficient numbers of people to the point of qualification. Testimony from one bank revealed that of the 64 households that contacted the lending institution to inquire about the program, 7 in 10 of them did not even complete the uniform residential loan application. “This makes no sense to me,” said committee chair Senator Marvin Blyden. Ultimately, only two of the 64 inquiries advanced to the underwriting process. These circumstances, said Mr. Blyden, mean “we have a bigger problem in the territory besides the agencies that are providing the opportunities.”