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United States Virgin Islands UNITED STATES VIRGIN ISLANDS DISASTER RECOVERY ACTION PLAN Version 2.0 Incorporating Amendment 1 Prepared by: Virgin Islands Housing Finance Authority U.S. Virgin Islands’ CDBG-DR Action Plan 1 | Page Governor Albert Bryan Effective: March 1, 2019 Public Comment Period: September 17 – October 17, 2018 Submitted to HUD: November 20, 2018 Modified Version: January 11, 2019 Approved by HUD: March 1, 2019 For CDBG-DR Funds under the Supplemental Appropriations for Disaster Relief Requirements Act 2017 and the Bipartisan Budget Act 2018 (Public Law 115-56 and Public Law 115-123) 2 | Page U.S. Virgin Islands’ CDBG-DR Action Plan TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................. 9 1. INTRODUCTION .................................................................................................................... 25 2. IMPACT AND UNMET NEEDS ASSESSMENT ........................................................................... 35 2.1 BACKGROUND ........................................................................................................................ 35 2.2 SUMMARY OF IMPACT AND UNMET NEEDS ......................................................................... 37 2.3 DEMOGRAPHIC PROFILE OF MOST IMPACTED AND DISTRESSED AREAS .............................. 39 2.4 UNMET HOUSING NEEDS ....................................................................................................... 45 2.4.1 Characterization of Populations with Unmet Needs .................................................. 48 2.4.2 Impact on Homeowners ............................................................................................. 49 2.4.3 Impact on Rental Stock ............................................................................................... 50 2.4.4 Impact on Public Housing ........................................................................................... 52 2.4.5 Impact on Vulnerable Populations ............................................................................. 53 2.4.6 Analysis of Unmet Housing Need ............................................................................... 55 2.4.7 Funding ....................................................................................................................... 58 2.4.8 Unmet Need ................................................................................................................ 60 2.5 UNMET INFRASTRUCTURE NEEDS ......................................................................................... 63 2.5.1 Energy ......................................................................................................................... 70 2.5.2 Roads ........................................................................................................................... 73 2.5.3 Educational Facilities................................................................................................... 75 2.5.4 Healthcare Facilities .................................................................................................... 76 2.5.5 Public and Community Facilities ................................................................................. 77 2.5.6 Waste and Wastewater .............................................................................................. 78 2.5.7 Telecommunications ................................................................................................... 81 2.5.8 Ports and Airports ....................................................................................................... 83 2.5.9 Water .......................................................................................................................... 84 2.6 UNMET ECONOMIC NEED ...................................................................................................... 87 2.6.1 Lost Wages .................................................................................................................. 94 2.6.2 Lost Government Revenues ........................................................................................ 96 2.6.3 Commercial Property Damage .................................................................................... 97 2.6.4 Analysis of Unmet Economic Needs ........................................................................... 99 U.S. Virgin Islands’ CDBG-DR Action Plan 3 | Page 2.7 UNMET PUBLIC SERVICES NEED ............................................................................................. 99 3. METHOD OF DISTRIBUTION, PROGRAMS, & ALLOCATIONS ................................................. 102 3.1 METHOD OF DISTRIBUTION ................................................................................................. 102 3.2 CONNECTION TO UNMET NEEDS ......................................................................................... 102 3.2.1 Housing ..................................................................................................................... 104 3.2.2 Infrastructure ............................................................................................................ 108 3.2.3 Economic Revitalization ............................................................................................ 112 3.2.4 Future programs ....................................................................................................... 113 3.3 HOUSING PROGRAMS .......................................................................................................... 116 3.3.1 Owner Occupied Housing for Disaster Impacted Households ................................. 121 3.3.2 Homeowner Rehabilitation and Reconstruction Program ....................................... 123 3.3.3 New Construction for Homeownership Opportunity and First Time Home Buyer Assistance ................................................................................................................................ 126 3.3.4 Rental Rehabilitation and Reconstruction ................................................................ 130 3.3.5 Public and Affordable Housing Development........................................................... 133 3.3.6 Supportive Housing and Sheltering Programs .......................................................... 136 3.3.7 Supportive Housing for Vulnerable Populations ...................................................... 137 3.3.8 Emergency Shelter Development ............................................................................. 139 3.4 INFRASTRUCTURE PROGRAMS ............................................................................................ 140 3.4.1 Local Match for Federal Disaster Relief Program ..................................................... 150 3.4.2 Infrastructure Repair and Resilience Program.......................................................... 154 3.4.3 Electrical Power Systems Enhancement and Improvement Program ...................... 158 3.5 ECONOMIC REVITALIZATION PROGRAMS ........................................................................... 163 3.5.1 Ports and Airports Enhancement Program ............................................................... 167 3.5.2 Tourism Industry Support Program .......................................................................... 170 3.5.3 Workforce Development Program ........................................................................... 173 3.5.4 Neighborhood Revitalization Program ..................................................................... 176 3.5.5 Small Business and Entrepreneurship Technical Assistance Program ..................... 179 4. GENERAL ADMINISTRATION ............................................................................................... 181 4.1 PROGRAM REQUIREMENTS ................................................................................................. 181 4.1.1 Building Standards and Construction Methods ........................................................ 181 4.1.2 Fair Housing .............................................................................................................. 182 4 | Page U.S. Virgin Islands’ CDBG-DR Action Plan 4.1.3 Flood-Resistant Housing ........................................................................................... 182 4.1.4 Anti-Displacement and Relocation ........................................................................... 184 4.1.5 “Demonstrable Hardship” and “Not Suitable for Rehabilitation” ............................ 185 4.1.6 Ineligible Activities .................................................................................................... 186 4.1.7 LMI and Overall Benefit Requirement ...................................................................... 186 4.1.8 Urgent Need .............................................................................................................. 186 4.1.9 Section 3 .................................................................................................................... 186 4.1.10 Environmental Review .......................................................................................... 188 4.1.11 Cost Verification .................................................................................................... 188 4.2 ADMINISTRATION AND PLANNING ...................................................................................... 190 4.2.1 Reimbursement of Disaster Recovery Expenses
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