HUD halts Virgin Islands housing authority amid fraud probes and disaster-funding concerns

HUD suspended the Virgin Islands Housing Finance Authority from future federal funding due to years of mismanagement and weak internal controls, tied to audits and the conviction of a former COO in a disaster-relief contracting scheme. The nearly $2 billion in Hurricane Irma/Maria recovery funds are at issue, and VIHFA has 30 days to request a hearing before the suspension becomes final, as the administration intensifies its crackdown on fraud in grant programs.