, 1959-01-29
LEGISLATIVE 9

AuLhOr1Cy was required TO submit alternate sites Tor con-
slderatlon. This was done by submitting the Altoona Area
as we'll as the Sugar Estate Area. Both areas were studied
by technical personnel Of the Public Housing Administra-
ton, and following the studies that were conducted, the
Federal government approved Of the use of Sugar Estate,
which in effect was a rejection Of the other area sub
mitted, which is commonly referred to as the Altoona SITE.
Having received this approval, a Development Program
was prepared and approved by the Federal government.
This Development Program forms the basis for an Annual
contributions Contract between the Federal Government
and the Housing Authority, which was executed in Janu-
ary 1858, providing for loans and grants for the construc-
ton and operation of the proposed project. To date, over
100000 OF Federal funds have been obligated in this con-
nectlon, including, OF course, the amount for Architects
fees which have not yet been paid, but is due according to
the Architects Contract.
Actually, all Of the sites submitted to the Legislature,
were previously approved in 1851, as provided for in the
Virgin Islands Housing and Redevelopment Authority
Law OF 1850. Last year, when the Altoona Area was under
study, specific approval was requested from the Legisla-
ture, only because of the fact that a relocation plan would
have been involved, and the Federal Law requires that
relocation of families is necessary in order to clear a site
for public housing, that feasible relocation plan must be
worked out locally, and submitted for final approval to the
Public Housing Administration. However, because of a
technlcaIty that has come about during the course of re-
cent litigation, all Of the sites previously approved have
again been submitted to the Legislature in order. to- clear
any possible difficulties in connection with the construc-
ton OF new housing developments in both islands,
Even though it may not be widely known, funds advanced
to Local Housing Authorities for development are not and
never become obligations of the local government. For
this reason, the Housing Authority is responsible to the
Federal Government for all monies advanced in connec-
ton with the planning and development Of all of its pro-
jects. Consequently, if the Federal Government is faced
with a serious loss of funds advanced for the develop
ment Of one project, no additional funds will be advanced
by the government to the Authority for other projects for
which approval has been given. For this reason, if the
Sugar Estate Area should be disapproved, no more funds
will be forthcoming for the development Of the 800 units
allocated to the island of ST. Thomas nor for the develop
ment OF the two projects allocated for the island of st.
Croix. This, of course, will be a serious set back to the 634
families OF lowincome who would be eligible to occupy
the three projects in Charlotte Analie, Christiansted and
Frederlksted, which are now in the development stage.
Unfortunately, the controversy which developed over the
location Of a 300-unit project allocated for the island of
ST Thomas has served to create q feeling among officials
in Washington that the people Of the Virgin Islands do not
want any more public housing projects. Undoubtedly, ap-
proval of the sites which have been submitted will serve
Ito clarity any doubts existing in the minds of officials in