Starting July 10, Angel Dawson Jr., a former V.I. Finance commissioner and gubernatorial candidate, will take up the helm as administrator of the Government Employees’ Retirement System.
In Wednesday’s news release, GERS board chair Duane Callwood said it’s because “time was required for an offer to be made and accepted.”
“Now that this process has been completed, we publicly thank Mr. Nibbs for his service and commitment to the GERS over the years and his willingness to remain at the helm while the process of selecting his successor wound its way to completion,” he added.
Nibbs has been administrator since 2007 but after announcing in 2021 his intention to retire has been given contract extensions — the latest of which was supposed to end in September. Until then, Nibbs will serve as a special advisor to the GERS board, making sure the transition goes smoothly once Dawson comes on in July.
According to GERS, Dawson is a longtime banker, starting his career with Chase Manhattan Bank, where he completed its Western Hemisphere Professional Development Program in commercial and investment banking shortly after receiving his degree in Business Administration/Finance from what was then the College of the Virgin Islands.
He currently serves as a senior vice president of FirstBank Puerto Rico, overseeing commercial lending activities in its Eastern Caribbean Region and the bank’s only international operation in the British Virgin Islands. His banking career also included 12 years with Banco Popular de Puerto Rico, where he left as vice president of Commercial Lending in 2009. Dawson served as commissioner of Finance from 2009 to 2014. In this position, he was also executive director of the Virgin Islands Public Finance Authority and a member of the GERS Pension Reform Taskforce Advisory Committee.
“Mr. Dawson brings us a well-balanced career in both the public and private sectors. We are confident that his experience in public finance and commercial banking will serve us well as we continue to stabilize and strengthen the Government Employees’ Retirement System,” Callwood said.
From Ashes to Assets: Making an Informed
Decision on Buying a Damaged House- this is a guest blog by Courtney Rosenfeld
Buying a home is one of the biggest investments anyone can make, which is why
it’s essential to perform the necessary due diligence when making such a
significant purchase. However, what happens when you’ve found the perfect
property, only to discover that it has suffered significant damage? Whether from
a natural disaster, burst pipe, fire, or other catastrophic event, discovering
damage in a potential home can present a dilemma for buyers. Should you move
forward with the purchase, negotiate repairs, or back out of the deal altogether?
In this article from Real Solutions Real Estate & Management Services, we’ll
explore what to do when buying a home with significant damage.
Navigating the Complexities: Hire an Attorney
The first step to take when discovering significant damage in a potential home is
to hire a real estate attorney. A real estate attorney can help provide legal advice
throughout the process and ensure that all aspects of the transaction are
handled properly. They can also review the home sale contract and assist in
negotiating the terms of the sale.
Consulting an Expert: Discussing Options with Your Agent
Next, call your real estate agent to assess your options. They have years of
experience in the industry and can guide you in deciding whether to continue with
the purchase or renegotiate the price based on the repairs required. They can
also help navigate the inspection process and negotiate with the seller. In
addition, your real estate agent can offer valuable insights on the potential resale
value of the property after repairs, helping you determine if the investment is
worth it in the long run. They can also provide recommendations for local lenders
who are familiar with financing options for damaged properties, ensuring a
smoother mortgage approval process.
Don’t Get Overwhelmed: Organized Housing Documents
Organize your housing documents by color-coding files. This seemingly simple
step can help you keep track of all necessary documents, including inspection
reports, insurance information, and repair estimates. Color-coding and labeling
files specific to a particular repair or issue can help you find what you need
quickly in the future.
Examine the Details of the Contract
Review the home sale contract and understand its terms. This contract should
stipulate what should happen if any damage is discovered during the inspection
process. It should also outline whether the seller or buyer is responsible for
repairs. Understanding the terms of the contract can help you decide whether to
move forward with the purchase, renegotiate, or back out altogether.
Seeing Clearly: Having an Evaluation
After reviewing the contract, have a home inspector and contractor assess the
damage. Having professionals assess the damage can help you better
understand the severity of the issues and the necessary repairs. They can also
provide estimates for repair costs, which can aid in negotiations with sellers.
Negotiating the Big Picture
Finally, do a thorough walkthrough before closing. This walkthrough provides an
opportunity to ensure that all necessary repairs have been made and that the
property is in the condition agreed upon in the contract. If there are any
outstanding repair issues, negotiations can continue to allow for necessary
repairs before closing.
Purchasing a damaged house can be a risky yet rewarding endeavor. By taking
the necessary precautions and seeking professional advice from a real estate
attorney and agent, you can make an informed decision. Organizing your housing
documents with color-coded files will help you stay on top of the process and
ensure a smooth transaction. Remember, turning ashes into assets is possible
when you approach the situation with caution, diligence, and the right resources.
For boutique realty services in the US Virgin Islands, contact Real Solutions Real
Estate & Management Services today!
The establishment and enforcement of a territorial park system could be the solution for disappearing green spaces in the U.S. Virgin Islands, and lawmakers are optimistic that fashioning a specific division to oversee its creation will enhance local and tourism opportunities for the territory.
Last week, senators forwarded Bill No. 34-0267 — sponsored by Senator Samuel Carrion — that will transfer authority from the Department of Sports, Parks, and Recreation (DSPR) to a division within the Department of Planning and Natural Resources (DPNR) to ensure the designation of various recreational spaces across the territory.
If the bill passes the full body of legislators, DPNR will be expected to establish a Division of Territorial Parks whose duty will include the conservation and protection of unique habitats and ecosystems, as well as the cultural and historical resources of the Virgin Islands.
The division will operate a territory-wide system of parks and recreation programs that will enhance outdoor recreational activities such as camping, picnicking, hiking, biking, horseback riding, environmental education, sightseeing, boating, fishing, swimming, and similar recreational activities.
According DPNR Commissioner Jean-Pierre Oriol, the department will be asked to formulate and put into execution a long-range, comprehensive conservation plan and program to acquire privately and publicly-owned properties that are suitable for development as parks or protected areas.
Vincent Richards, deputy commissioner of Dept. of Property and Procurement, said his team has already identified 43 government-owned properties which they believe can be developed for recreational use. They include 30 properties on St. Thomas, three on St. John and 10 on St. Croix.
Mr. Richards told lawmakers this is just a “starting list” as DPP plans to propose additional properties to place into the system for designation.
If the bill passes, DPNR will be responsible for Territorial Parks and Protected Areas whereas the Department of Sports, Parks and Recreation will maintain responsibility for neighborhood parks and other areas for individual recreational use.
DSPR Commissioner Calvert White supported the bill, explaining that implementing this legislation would allow DSPR to focus primarily on its sporting and recreational facilities while still giving full support to DPNR.
A Territorial Parks System Revolving Fund and a Recreational Parks Revolving Fund will also be established to support the work of DPNR and DSPR.
“It is necessary. We don’t want to become a concrete jungle,” remarked Senator Novelle Francis Jr. He was supported by six other senators as well as non-committee member Senator Kurt Vialet.
The local Virgin Islands Real Estate market for Vacation Rental / Investment condominiums continues to struggle with very low supply and heavy demand. Rarely does a day go by without receiving an inquiry for one of the “high demand” locations on island. Let me try to help you understand what is going on.
Some of the more popular condo complexes include Sapphire Beach Resort, Sapphire Bay West, and Point Pleasant. These locations offer excellent vacation rental income potential with “minimal” investment. But because these are typically easy to rent (with options on management of units), they provide excellent income. Hence the high demand, along with sellers unwilling to unload their investments. These particular locations are also classified as “condo-tels”- making a purchase slightly more difficult. Why? Because financing in these spots is limited and you cannot get typical conventional financing. For this reason, a majority of sellerss only wish to consider cash offers, and there are usually ample buyers willing to pay cash for these properties. So those needing financing will struggle to be able to purchase in these locations until the market changes.
The two banks willing to lend at these locations are Merchants Commercial Bank and First Bank. MCB is extremely efficient and professional in my experience- they do a great job. But their financing offer includes a five year balloon payment and a higher interest rate than typical thirty year rates you read about online. It may also require a higher down payment- this can fluctuate depending upon the buyer but you should expect to pay 25% and it could be 30%. First Bank, and I am sorry to say this, rarely seems to come thru with a successful loan. I have waited four months for loan approvals of a buyer only to be refused after all that time. Since this has been going on for years, educated sellers may not consider an offer planning to utilize FB for a loan. My hope is FB improves their business in the coming years, because we could use another local bank providing loans. The opinion above is solely my own, but it is something I hear from many others over the years too.
Now, there are other locations where you can purchase and still get a more typical loan. My favorite lender has always been First Liberty, and have closed dozens if not hundreds of deals thru them over the years. They can do loans at some other desirable locations like Cowpet Bay and Mahogany Run. In these cases, a typical 30 year loan with a reasonable interest rate can be expected. But note: CASH IS KING and a seller will always prefer a cash offer if all other terms are the same.
So what can you expect knowing these things? You are in a much better position as a buyer if you are paying cash. It removes the financing contingency and can lead to a faster closing timeline. It avoids the worry of a property not appraising for the sales price. Besides how you plan to pay for the property, you should also plan to move very quickly if a new listing comes up. There will surely be multiple buyers interested in the same condo, so you must act quickly. And you should expect multiple offers. The days of buying something “on the cheap” are no longer here.
Plan to keep up with the market. Speak with an agent in our firm to get on a mailing list if one of these condos does pop up for sale. And be ready to act quickly.
Sea urchins washed up on beach shore. By GETTY IMAGES
Mass die-off of sea urchins in several Caribbean islands, including the U.S. Virgin Islands, Dominica, St. Lucia, Antigua, Cozumel in Mexico, St. Vincent, Jamaica and Saba has raised alarms among scientists who say the phenomenon is threatening already fragile coral reefs in the region.
Scientists had originally linked the die-off to the Diadema antillarum, known as the black sea urchin, however two other species — the rock boring sea urchin and the West Indian sea egg — have also been affected.
Patricia Kramer, a marine biologist and program director at the Atlantic and Gulf Rapid Reef Assessment expressed particular concern that the die-off was occurring so quickly.
According to the Associated Press, Dana Wusinich-Mendez, Atlantic-Caribbean team lead for the U.S. National Oceanic and Atmospheric Administration’s coral reef conservation program, stated, “Losing our sea urchins would be really devastating.”
Sea urchins are known for being reliable grazers removing macro algae from coral reefs, which clears space for baby sea corals to attach themselves, both Kramer and Wusinich said.
In February, the V.I. Dept. of Planning and Natural Resources said the territory was experiencing an unusual die-off event of Long Spined Sea Urchins. “This is particularly concerning because in the early 1980’s over 90 percent of the natural populations of these urchins were killed by a disease and researchers are worried that this could be a new emergence of disease,” D.P.N.R. said. “These urchins are vital to the health of our coral reefs because they eat the algae that try and smother coral reef colonies.”
According to the AP, the Atlantic and Gulf Rapid Reef Assessment recently helped create a network to investigate the deaths, analyze tissue samples and find solutions. Among participants of the investigatory team is the Florida-based Gulf and Caribbean Fisheries Institute along with almost two dozen groups in the Caribbean and U.S.
D.P.N.R. said it needs help from the public to report any dying/dead urchins around the territory. Science Direct has a detailed history of Sea Urchins here.
Starlink, the internet service company from Elon Musk’s Space X firm which is currently providing service in a number of countries around the world, is now available in the U.S. Virgin Islands.
The company started sending out emails last week to people who had signed up for the service. “Users can expect to see download speeds up to 250Mb/s and latency as low as 20ms in most locations,” Starlink said in an email to customers in the U.S. Virgin Islands on April 15.
Many Virgin Islanders have been sharing their excitement about Starlink’s arrival to the territory, including this post on Facebook which received several positive responses. Another post received 72 comments, with some responders stating that they too had placed their order, while others were curious and inquired about performance.
Starlink through its parent company Space X has sent over 2,000 satellites to space in low earth orbit, or LEO, where those satellites are able to provide high-speed internet to customers, including gamers.
Some customers have reported having difficulties placing orders through their local address, an issue that is tied to the territory’s still-developing presence on Google Maps. Customers have to use addresses that are properly listed on Google Maps to successfully place an order. Once one’s location is determined, Starlink will then ask for the customer’s shipping address, which includes the option for Post Office Box addresses.
Once the package is received, customers will get a pre-connected dish and a stand. Starlink has been shipping the second-generation rectangular dish, which has a flat white surface and is about 19 inches long by 12 inches wide. It also weighs roughly 8 pounds. The dish fits into its four-legged metal stand and connects to a wireless router – which plugs into a wall — with a cable that is about 75 feet long.
Starlink already has over 250,000 users in 25 countries, according to Mr. Musk, who is also the founder of Tesla, Space Exploration Technologies Corp, known as Space X, and The Boring Company. He is also the richest man in the world.
According to Ookla, which tests internet speeds and performance, Starlink was by far the fastest satellite internet service provider during Q4 2021. The service also competes with fixed providers in the U.S., with median speeds of up to 104.97 megabits per second (Mbps) download, and upload speeds of 14.84 to 24.17 Mbps. Starlink’s regular tier service costs $99 per month and a mandatory $499 for the initial hardware.
The company recently launched a business premium package for $500 a month that provides up to 500 Mbps download and upload speeds of 20 to 40 Mbps.
Starlink’s arrival in the U.S. Virgin Islands will put pressure on providers such as Broadband V.I., which was recently acquired by Liberty Latin America, the telecommunications giant that also purchased the USVI and Puerto Rico operations of AT&T. Viya will also face pressure as a result of Starlink’s arrival.
Coral Bay as seen in March 2022. (Photo by Elizabeth Escardo)
The lawsuit, filed by Save Coral Bay, a community action group opposed to the marina, challenged the governor’s approval of modifications made to the project’s Coastal Zone Management permit. The modified permit was subsequently approved by the Virgin Islands Legislature and signed into law.
Save Coral Bay filed an appeal with the Supreme Court 10 days after the Superior Court’s ruling last May, but last week the top court ruled that the case was moot.
The judge’s decision was not made on the issue of whether or not Gov. Albert Bryan Jr. broke the law when he modified a CZM permit and then sent it to the V.I. Legislature for approval; rather, Hodge’s decision was based on procedures set forth in the Revised Organic Act, which in the absence of a constitution, sets the framework for Virgin Islands law.
Hodge wrote, “Save Coral Bay maintains that the Legislature cannot ratify an action by the Governor which is contrary to statute … But this is not a case where Governor Bryan acted contrary to a statute and then he or another Executive Branch entity attempted to retroactively ratify his own conduct.”
“Instead, this is a case where the Legislature ratified an action taken by Governor Bryan. Therefore, the proper inquiry is not into the power of Governor Bryan or the Executive Branch, but the power of the Legislature itself to excuse violations of the statutory law,” Hodge wrote.
“Even if this Court were to assume — without deciding — that this procedure differs from that set forth in the Coastal Zone Management Act, the passage of the CZM Act by an earlier Legislature could not deprive the 33rd Legislature and Governor Bryan of their constitutional authority to change that law in the manner provided for in the Revised Organic Act,” Hodge wrote.
“Whatever the merits of Save Coral Bay’s claims under the law as it existed at the time it filed its complaint, the subsequent enactment of Act No. 8407 rendered those claims moot. Therefore, we affirm the Superior Court’s May 12, 2021 order,” Hodge concluded.
David Silverman, president of Save Coral Bay, said he was trying to make sense of the ruling. “It is my understanding that the Chief Justice said that regardless of whether or not Governor Bryan followed the legal procedure for modifying CZM permits when the Legislature ratified what he had done, it made it all legal. The Chief Justice decided that the action by the Legislature effectively amended the CZM law for Summer’s End Group.”
The proposed Summer’s End marina will be built along this shoreline in Coral Bay. (Photo by Amy H. Roberts)
Silverman said the decision set a “truly frightening” precedent “because it says that any developer can go to the governor and convince him or her to issue a permit without any Department of Planning and Natural Resources or Coastal Zone Management review.
“If the developer, hand in hand with the governor, can then get the Legislature to ratify the Governor’s actions, then the permit is considered legal. This is not how I understood our legal system to work. A process like that does not allow for any judicial review, which is one of the key checks and balances in government,” Silverman said.
When the Source reached out for comments to Chaliese Summers, the managing member of the Summer’s End Group, she said, “The Summer’s End Group appreciates the opinion issued by the Supreme Court. As the Superior Court had previously found, the Legislature ‘may repeal or amend a law codified in the Virgin Islands Code by enacting a law,’ and ‘this is precisely what the Legislature did in this case.’ And we thank the members of the Legislature for their support.”
Summers also thanked Bryan for his support, adding, “We believe that the governor’s action fully comports with the CZM Act, as he has stated with which both the Superior Court and the Supreme Court agreed.”
Summers mentioned the many hurdles the developers have gone through to get to this decision. “As we have testified, the Coastal Zone Management Act sets forth a process to complete review and administrative appeals in 225 days. It also permits appeal by writ of review, which contemplates a ‘speedy’ review. It is now more than 2,700 days since the Coastal Zone Permit was approved.”
The future of the 144-slip marina development now hinges on a decision by the U.S. Army Corps of Engineers as to whether or not to issue a permit for the project.
The project has been under review by the Army Corps since 2014. At one point, more than 20,000 members of the public sent letters opposing the project to the Army Corps, according to Save Coral Bay’s timeline of the project.
The Bryan administration, however, has fully supported the marina project, which the developers say will bring jobs and an upgrade in infrastructure to Coral Bay harbor.
The Summer’s End Group’s application to the Army Corps has been pending throughout the administrative and legislative action as well as legal challenges. In September 2021, the Army Corps informed the developers that further studies must be conducted before a permit could be issued.
This is a photorealistic rendering of the SEG marina at 80% capacity based on the drawings submitted by SEG to the Army Corps. The rendering was constructed by Daniel Pinto on behalf of Save Coral Bay.
Summers said, “The Summer’s End Group continues to successfully pursue its federal permitting through the Army Corps of Engineers and has every expectation that the permit will be issued this year. Summer’s End is diligently working to address any remaining requests from the U.S. Army Corps of Engineers and National Marine Fisheries in order to finalize the permit and bring this incredible development to St. John. Summer’s End is prepared to move the St. John Marina (upland and marina) into the construction phase immediately upon issuance of a federal permit.”
Silverman said Save Coral Bay has received the latest document submission sent to the Army Corps by the Summer’s End Group through the Freedom of Information Act. “This submission was in response to the letter of deficiencies sent to SEG by the Army Corps over six months ago (Sept. 2021).”
“Although the Army Corps required substantial new fieldwork and studies, it does not appear that SEG has conducted any of the studies requested by the Corps or the NOAA review agencies,” Silverman said. “The submission, amounting to close to 500 pages, appears to be primarily material previously submitted to the Army Corps, some with new explanations but no new studies. ”
Whether the matter can be pursued in federal court is unclear, according to Silverman. “On the other hand, what the Chief Justice wrote in the two-sentence summary that I read, is that no Legislature can bind the hands of a future Legislature. So even though Summer’s End now has a CZM permit and 20-year Trust Land Lease (which they cannot use without an Army Corps permit), the next Legislature might decide to correct the actions of the 33rd by rescinding that permit. So wrote the Chief Justice, if I understand him correctly.”
If having clean air is of paramount importance to you, the U.S. Virgin Islands should be at the top of your list of destinations to consider, according to the “2021 World Air Quality Report”, conducted by IQAir and published on March 23.
According to the report, only 3 percent of cities and no single control met the World Health Organization’s PM2.5 annual air quality guideline. PM2.5 are tiny particles in the air that reduce visibility and cause the air to appear hazy when levels are elevated. The air pollutant is a concern for people’s health when levels are high.
IQAir’s said its 2021 World Air Quality Report is the first major global report based on updated annual World Health Organization air quality guideline for PM2.5.
Among several key findings was the U.S. Virgin Islands’ placement as one of three territories that met the WHO’s updated PM2.5 guideline. Puerto Rico also met the air quality guideline, as well as French territory New Caledonia, according to IQAir.
The report also found that Bangladesh, Chad, Pakistan, Tajikistan and India were among the top five polluted countries.
The key findings of the report are:
No country met the latest WHO air quality guideline for PM2.5 in 2021.
Only the territories of New Caledonia, U.S. Virgin Islands and Puerto Rico met updated WHO PM2.5 air quality guideline.
Only 222 out of 6,475 global cities covered in the report met updated WHO PM2.5 guideline.
93 cities in the report had annual PM2.5 concentrations exceeding 10 times the WHO PM2.5 guideline.
Of 174 Latin America and the Caribbean cities, only 12 (7 percent) met the WHO PM2.5 guideline.
Of 65 African cities, only one (1.5 percent) met updated annual WHO PM2.5 guideline.
Of 1,887 Asian cities, only four (0.2 percent) met updated WHO PM2.5 guideline.
Of the 1,588 cities in Europe, only 55 (3 percent) met the WHO PM2.5 guideline.
The report covered 2,408 cities in the United States and found that average PM2.5 concentrations rose from 9.6 µg/m3 to 10.3 µg/m3 in 2021 compared to 2020. Of the major cities in the United States, Los Angeles was the most polluted. However, the City of Angels saw an overall decrease in PM2.5 pollution of 6 percent compared to 2020.
The top five most polluted countries in 2021 were:
Bangladesh
Chad
Pakistan
Tajikistan
India
New Delhi (India) is the world’s most polluted capital city for the fourth consecutive year followed by Dhaka (Bangladesh), N’Djamena (Chad), Dushanbe (Tajikistan) and Muscat (Oman).
Air quality in China continued to improve in 2021. More than half of the cities in China included in the report saw lower levels of air pollution when compared to the previous year. Pollution levels within the capital city of Beijing continued a nine-year trend of improved air quality, driven by emission control and reduction of coal power plant activity and other high emission industries.
Central and South Asia had some of the world’s worst air quality in 2021 and was home to 46 of the world’s 50 most polluted cities. The only two cities that met updated WHO PM2.5 guideline were Zhezqazghan and Chu (Kazakhstan).
Air quality monitoring remains sparse in Africa, South America and the Middle East, although progress has been made by low-cost air quality sensors often operated by non-profit organizations and citizen scientists.
Frank Hammes, CEO of IQAir stated, “It is a shocking fact that no major city or country is providing safe and healthy air to their citizens according to the latest World Health Organization air quality guideline. This report underscores just how much work remains to be done to ensure that everyone has safe, clean and healthy air to breathe. The time for action is now.”
Greenpeace India Campaign manager Avinash Chanchal said, “We understand better than ever before how air pollution damages our health and economies. This report is a wakeup call, revealing how people worldwide are denied access to clean air. Particulate matter air pollution is produced through burning fuels including coal, oil and fossil gas, unsustainable development, and agricultural activities. Addressing the air pollution crisis requires the development of renewable energy resources and clean-powered, accessible public transport. Moreover, solutions to air pollution are also solutions to the climate crisis. Breathing clean air should be a basic human right, not a privilege.
For many Americans, purchasing a home is not only about establishing roots in a community, but it’s also a step towards building generational wealth.
However, barriers exist and, for Black Americans in particular, homeownership dreams have been historically diminished or denied and their neighborhoods and communities devalued.
Ayesha Selden grew up in the ’80s in a Philadelphia neighborhood which she describes as, “The kind of neighborhood where you played outside at your own risk. It was rough, however, it was just walking distance to downtown Philly.”
When Selden was nine years old, her mother purchased a small home where she, her sister and grandmother lived until her mother married and decided to sell the home. At this same time, Ayesha was moving on to begin her studies at nearby Temple University, but she advised her mom not to sell — Selden had a feeling the house would be worth more in the future.
Selden was correct in her housing market predictions. By the time Selden was 24 and able to purchase her first home, she’d been priced out of the neighborhood she grew up in. The neighborhood, revitalized with green space, is now seen as desirable for its walkability and proximity to downtown. Selden says the house her mom once owned is worth over $600,000. Her mom had sold it in the late ’90s for just under $40,000.
Selden, now a successful certified financial planner, private wealth advisor and real estate investor, tells her clients and followers on social media to “not sell grandma’s house” in an effort to protect Black communities against housing instability and focus on ownership. “I knew our communities would turn,” Selden reflects. “The only way we get out of the rent being too high, is through ownership.”
Unfortunately, Selden’s experiences are not unusual. Her advice to Black communities to maintain prior generations’ assets to build wealth is wise. What’s more, it could take root for more people as lasting efforts to address these inequities by changing policies and lending practices to create more equitable access to homeownership.
Black homeownership historically
A 2015 Social Science Research Council report commissioned by the ACLU notes that the 2008 crisis all-but wiped out the gains of homeownership amongst Black Americans that hadn’t been seen since the 1960s. Compounding that, the current pandemic has exacerbated housing instability for Black families across the country.
However, this inequity is not just the result of economic ups and downs over the last few decades.
“Because of anti-Black legislation, many Black residents or residents of Black majority neighborhoods of the past could not pass on wealth to their children, and those children could not pass on wealth to their children,” explains Dr. Andre Perry, a senior fellow at the Brookings Institution.
Dr. Perry’s research points not just to barriers to homeownership, but also to how Black homes in Black neighborhoods are often devalued by as much as 23%, or about $48,000 per home, resulting in about $156 billion in lost equity.
“It goes without saying, we also need to remove the dredge of racism that extracts wealth from those neighborhoods: like bad appraisal practices, bad real estate agent behavior and predatory lending,” Dr. Perry says.
Policy plus affordability
Dr. Perry’s proposals for equity around homeownership also include the creation of new mortgage products that will enable low-income renters to purchase low-priced homes. “There are thousands of homes throughout the United States that are priced below a point that a bank will back with a mortgage,” Dr. Perry states. “So, we need to figure out ways to enable low-income renters to move into those homes.”
Alternative credit scoring systems may also help, Dr. Perry contends. “When you don’t have wealth, it’s much more likely you’ll fall into debt, and that’s one of the reasons why Black people, in general, have lower credit scores, is because we have lower wealth historically,” Dr. Perry explains.
Dr. Perry notes that a comprehensive approach is not focused only on individual homeownership alone. “We need policies that really revisit how we got out of the Great Depression, [where] we invested in people in the form of low-interest loans and down payment assistance. But we also need to invest in place. Many of the areas that Black and brown people live in have been, and are impoverished, because of a lack of investment in those areas,” Dr. Perry says.
Access to home loans
Homebuyers’ access to homes that are affordable goes hand in hand with access to home loans that can help them finance their purchase.
Quote
Homebuyers’ access to homes that are affordable goes hand in hand with access to home loans that can help them finance their purchase.
End Quote
While efforts to make capital more accessible to Black citizens seeking to purchase is key, it also requires a community. Selden even suggests that new homeowners “house hack”: rent out a spare bedroom to help with payments and find unique ways to use their homeownership to help put others in a position to buy a home of their own.
“Group economics will give [Black people] the ability to accomplish more together than individually. We need to make sure that we put [Black communities] in a position to win,” says Selden.
Sherrell Dorseyis founder, and CEO of The Plug, the go-to business media and insights platform examining the Black innovation economy. You can view more of her work at tpinsights.com.
In what would amount to one of the boldest moves in USVI government history with far-reaching impacts affecting almost every facet of life, Governor Albert Bryan on Monday announced that he plans on making St. Croix 100 percent solar-powered in a number of months by partnering with a major energy firm that could build and maintain a solar plant powerful enough to easily energize the 84-square mile island.
“We want to put St. Croix 100 percent solar and put as much solar as we can in as quickly as possible. If we have one island that’s burning the least amount of fuel possible that’s a huge solution for us,” the governor said.
If accomplished, the result would be drastically lower utility bills on the Big Island, as St. Croix is called, and among the byproducts of this reality would be a ricocheting of price reductions across industries and sectors as firms small and big save money on utilities. It would also mean more disposable income for Virgin Islanders who pay hundreds of dollars monthly to WAPA, hence stirring economic growth.
Mr. Bryan sees the current high price of oil caused by Russian’s war in Ukraine and U.S. inflation, as portending a catastrophic situation identical to the 2008 V.I. Water and Power Authority crisis. At the time, crude oil had risen above $146 a barrel and WAPA was completely reliant on fossil fuel. Therefore, as the price surged, so too did utility costs in the U.S. Virgin Islands.
“Getting something done and getting it down quickly, that’s the kind of situation we’re in,” the governor said Monday. “I told my people think about it as we need to get the whole island energized in 90 days… That’s the kind of urgency we’re under here because we cannot afford for the light bills to go where they were in 2008, 2009. It crippled our economy, crippled our small businesses — we have to figure this out and we have to do it quickly.”
The cost of fuel, already up 45 percent for the year, continues to fluctuate based on developments in Ukraine. On Monday morning, the price of Brent Crude, which is the global benchmark, fell by $4 a barrel to $108.55 following news that Russia was willing to have substantive discussions about its war in Ukraine. If those talks fail and the situation on the ground escalates, the price of oil could surge further. If the talks go well, the price could tumble. Last week the price of oil closed above $130 a barrel.
In order to accomplish his goal, Mr. Bryan said swift action is needed, and this might come by means of an energy state of emergency declaration to push aside regulatory hurdles and other government red tape. “The way we’re looking at this is the same way we looked at the whole grid being out after the [2017 storms]. Like this is an emergency situation so normal timelines don’t apply. I’ve given serious consideration to declaring an energy emergency so that we could fast-track any bidding process, fast-track any permitting process and get somebody in here and get it up as quickly as possible,” Mr. Bryan said when queried by the Consortium for a timeline.
The governor said he has tasked the V.I. Energy Office and WAPA officials to lead the charge in examining potential opportunities and routes for Mr. Bryan’s vision. The governor mentioned Siemens Energy, for example, as a firm with the wherewithal to deliver the desired outcome. Siemens Energy provides power generation, power transmission, renewable energy, industrial applications, services and storage solutions, according to a description on the firm’s website.
“We’ve been trying to do it with our own resources; one thing is to go immediately out to RFP [request for proposal] and look for a big manufacturer like Siemens [Energy] or one of the other big ones to come in and build the whole thing for us and then sell us back the power,” said the governor. “That would save us tons of money perpetually if we do that.”
Mr. Bryan said the plan would include a negotiated buyout “after a certain number of years so we could eventually own the solar facility.”
Another part of addressing the increases in utility costs is the “fast-tracking of the batteries at all our solar facilities,” the governor stated.
As for why St. Croix is being prioritized, Mr. Bryan said, “The reason why we’re looking at St. Croix is because it’s the easiest in terms of topography. We already had a 25 megabit plant that we were looking to install here, so it’s just fast-tracking everything.”
Mr. Bryan spoke of traveling to Washington for discussions with U.S. Secretary of Energy Jennifer Granholm. He also said he would meet with the V.I. Legislature in the spirit of collaboration. “There are things we can do without them but we prefer a collaborative approach to this,” he said.
At the end of his press briefing, the governor sought to reassure Virgin Islanders. “Don’t panic yet, we have this under control,” he said, “We got some options and some resources…. As we go into summer people will be using more energy, but rest assured we are working to get you there and we’re going to figure this out.”
