An act amending title 29 Virgin Islands Code, chapter 23 to establish a wholly owned subsidiary of the Virgin Islands Public Finance Authority and require
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Tough property and insurance rules for hotels
When a hotel is backed by these bonds, the owner must transfer full, unencumbered ownership to the Government when bonds are fully repaid. Net revenues after debt service and reserves must go to early bond redemption, not private payouts. If sold before maturity, net sale proceeds after bond repayment go to the Government. The owner must obtain windstorm and flood insurance or document denials, fund a reserve to cover deductibles, and use insurance money only to rebuild. If rebuilding does not start within 12 months after a casualty, a receiver can be appointed and control shifts to the Government or its designee.
Bond financing for nonprofit hotel projects
The hotel finance corporation can issue tax-exempt or taxable revenue bonds for qualified 501(c)(3) nonprofits. It can fund projects using loans, leases, or installment sales. Projects must serve a public purpose and meet federal tax rules, and the issuance must not put the Government at financial risk. The corporation does not have to own, run, or manage projects it finances.
Borrower fees and reporting for hotel bonds
Borrowers must repay on time and cover all bond principal, interest, and expenses. They must provide collateral, pay an issuance fee at closing, and pay an annual service fee. They must keep 501(c)(3) status, sign federal tax certificates, and follow SEC continuing disclosure rules. Loss of 501(c)(3) status is a default that requires a fix or immediate repayment if bondholders direct it. Projects must get an independent property condition assessment every five years and send the report to the Legislature and the hotel finance corporation within 180 days.
New hotel finance corporation created
The law creates the Virgin Islands Hotel Development Financing Corporation, a public corporation controlled by the Public Finance Authority. It oversees hotel development, operations, and financing. The Public Finance Authority can act directly or through this new corporation to carry out powers under this chapter.
No government guarantee on hotel bonds
Debts of the hotel finance corporation are not debts of the Virgin Islands Government or the Public Finance Authority. These bonds are special, limited obligations payable only from pledged project revenues or borrower payments. Creditors cannot look to the Government’s full faith and credit for repayment.
Rules for authority use of bond fees
The Public Finance Authority can use administrative fees from issuing tax-exempt bonds to run its operations. Any other use or transaction with those fees must get Legislative approval before spending.
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Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Enacted
11/20/2025legislatureTo Governor
11/20/2025legislatureFloor
11/19/2025legislatureFloor
11/18/2025legislatureIntroduced
11/18/2025legislature
Bill Text
Enacted Act
11/20/2025
Governor's Message
11/20/2025
Bill Text
11/18/2025
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