The “Own a Lot, Build a Home” First-Time Homebuyers Assistance Program has been launched and it is specifically designed to assist Virgin Islands’ residents who own land but have not been able to secure the necessary financing to proceed with construction, the Virgin Islands Office of Disaster Recovery announced.
This initiative provides a zero percent interest forgivable loan to qualified applicants, easing the financial burden of constructing single-family homes on undeveloped properties. The land must be untouched and free from any construction or infrastructure, according to the press release.
“The ‘Own a Lot, Build a Home’ Program is a pivotal step towards making homeownership accessible to more Virgin Islanders,” said Adrienne L. Williams-Octalien, director of the Office of Disaster Recovery. “By providing financial support and utilizing disaster recovery funding, we are empowering residents to build and sustain their homes, contributing to the long-term resilience of our communities.”
Recognizing the unique challenges of home construction in the Virgin Islands, such as limited buildable land and high construction costs, the program leverages $10 million of Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to subsidize these expenses. Homeowners must occupy the home as their primary residence for five years, during which the loan is forgiven gradually at a rate of one-fifth of the principal amount each year. If the property is sold or no longer serves as the primary residence during this period, the owner may be subject to recapture of the remaining balance, the press release stated.
To apply for the “Own a Lot, Build a Home” Program, landowners who have resided in the territory for at least three years must complete the first-time homebuyers program offered by the Virgin Islands Housing Finance Authority and an application through participating lending institutions Banco Popular or Rural Development. The lending institution, along with ODR, will then assess the applicant’s eligibility based on established criteria to determine the appropriate level of funding based on each applicant’s needs, the release stated.
For more information and how to apply, visit ODR’s table at the 2024 Housing Expo hosted by the Virgin Islands Housing Finance Authority. Interested applicants can also find information on ODR’s website or by contacting the New Housing and Infrastructure Construction Program at nhicprogram@usvipfa.com.
