FEMA approved release of $76.5 million for EHRVI/STEP contractors

The Virgin Islands Office of Disaster Recovery said on February 10, 2021, that $76.5 million in payments for direct construction work would be released to prime contractors in the Emergency Home Repair of the Virgin Islands and Sheltering and Temporary Essential Power program.

FEMA had halted contractor payments in June 2020 after raising concerns about the reasonableness of costs in the program, which was administered by the Virgin Islands Housing Finance Authority. The agency later determined that $233 million in hard construction costs were eligible, according to the government.

Of that amount, $165 million had already been paid and $76.5 million was approved for release. The government said $18 million was deemed ineligible and that the territory intended to appeal that amount.

The funds were to be released to the Virgin Islands Housing Finance Authority, which would then pay prime contractors AECOM and APTIM.

The government said the EHRVI/STEP program provided temporary repairs to 6,560 homes and permanent roofing repairs to 1,648 homes.

FEMA had also committed to make a determination by March 31, 2021, on soft costs, including contractor expenses tied to housing, travel, oversight and administration, according to the statement.

Official source: https://www.vi.gov/76-5m-in-payments-on-its-way-to-ehrvi-step-contractors/