Puerto Rico to get $18.5 billion to
rebuild shattered housing market
Send a link to a friend
[April 11, 2018]
By Luis J. Valentin Ortiz
SAN JUAN (Reuters) - Puerto Rico will
receive $18.5 billion from the U.S. Department of Housing and Urban
Development to help rebuild its battered housing stock and
infrastructure after September's Hurricane Maria, the island's governor
and HUD officials said on Tuesday.
The funding for the U.S. territory was the largest grant in the history
of the HUD, said HUD undersecretary Pamela Patenaude.
But the award was significantly less than the $46 billion requested by
Governor Ricardo Rossello in November.
HUD is awarding a total of roughly $28 billion to nine states, the U.S.
Virgin Islands and Puerto Rico that have been recently affected by major
disasters, including Hurricanes Irma, Harvey and Maria, as well as the
recent California wildfires.
The funds are part of a $90 billion disaster aid package signed by Trump
in February. The Virgin Islands is set to receive $1.6 billion in HUD
disaster recovery funds, a department media advisory said on Tuesday.

Rossello said at a news conference that he expected to adjust Puerto
Rico's fiscal turnaround plan to reflect the full grant. The most recent
version of the plan pegged at $13 billion the amount of funds from HUD
that the commonwealth expected to receive.
Puerto Rico is navigating the largest bankruptcy in U.S. government
history, and the plan is meant to establish economic projections that
will serve as a basis for forthcoming restructuring talks with creditors
owed $120 billion in bond and pension debt.
Rossello and Patenaude made the announcement in Villa Hugo, a shantytown
in Canovanas, which sustained severe damage when Maria hit the island on
Sept. 20.
Villa Hugo's 6,000 residents are squatters on government land. Most
built their homes informally, and do not own title to their properties.
[to top of second column]
|

Milagros Nolazco carries her granddaughter Isya in the bedroom of
her home, as a plastic sheet replaces the roof hit by Hurricane
Maria in September, in a neighbourhood in Canovanas, Puerto Rico
April 10, 2018. REUTERS/Alvin Baez

"Informal" construction - which can also refer to property owners
who illegally subdivide their land - is thought to comprise between
one-fourth and one-half of Puerto Rico's 1.2 million homes.
The prevalence of informal housing, which often does not comply with
building codes, was thought to compound damage to Puerto Rico's
housing stock when the storm hit.
The HUD funds can be used for housing, economic development and
infrastructure, and could be used to help repair the island's
crippled power grid. While local authorities determine where funds
will be used, HUD provides technical assistance and guidelines,
Patenaude said.
Maria was a vicious blow to an already struggling island that has
been in recession for more than a decade, with a poverty rate near
50 percent.
Puerto Rico now projects to receive roughly $50 billion during the
next six years in federal disaster relief assistance, mostly through
the Federal Emergency Management Agency, according to the
government's latest fiscal turnaround plan.
(Additional reporting by Nick Brown in New York; Editing by Daniel
Bases and Rosalba O'Brien)
[© 2018 Thomson Reuters. All rights
reserved.]
Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |