ST. CROIX — Eugene Jones Jr., who arrived in the Virgin Islands nearly two years ago with a reputation as a national “fix-it” leader in public housing, announced his resignation today as executive director of the Virgin Islands Housing Finance Authority, marking an unexpected end to what began as a highly touted new chapter for the agency.
“I have submitted my resignation,” Jones told the Senate Committee on Housing, Transportation and Telecommunications while reading his prepared testimony during a meeting today, adding that his resignation will be effective in April.
During the meeting, Jones clashed with Senator Kurt Vialet while responding to questions about a $4 million appropriation for a first-time homebuyers program. Jones reminded senators during the meeting that they had previously discussed reallocating the money because of stringent requirements within the program. Vialet clarified that only the Legislature can reallocate the funds, and that VIHFA was responsible for creating usable guidelines. Vialet expressed frustration that the funds have been unused for years, learning that Jones does not have a plan to spend the money.
Jones joined VIHFA in April 2024, relocating to the territory after decades of experience leading and rehabilitating housing authorities across North America. Known in the public housing industry as “Mr. Fix It” for his work with agencies under federal receivership, Jones spoke openly upon his arrival about innovation, transparency, and community collaboration — particularly the need to design affordable housing solutions suited to the Virgin Islands’ hilly terrain.
READ MORE: New head of VIHFA brings innovative vision for affordable housing; prioritizes community, honesty
Jones laid out ambitious plans for VIHFA, including positioning the Authority as a one-stop agency for housing development and homeownership, emphasizing accountability, faster decision-making, and trust in staff expertise. He also spoke about deploying roughly $774 million in disaster recovery mitigation funds toward infrastructure and housing while federal funding windows remained open.
Jones’ resignation comes after questions from legislators about three months ago surrounding a major affordable housing project on St. Thomas, overlapping professional relationships involving former VIHFA leadership and developers, and a whistleblower lawsuit that alleges deep-rooted mismanagement within the agency.
In a lawsuit filed in Virgin Islands Superior Court, former VIHFA Chief Operating Officer Stephanie Berry names as defendants the Housing Finance Authority, Jones, and former Interim Executive Director Dayna Clendinen, who now serves as VIHFA COO and chief disaster recovery officer. Berry, who served as COO from January 2023 until October 2024, alleges she was terminated in retaliation for whistleblowing on procedural and financial violations within the agency.
Berry’s complaint paints a picture of systemic mismanagement, alleging that VIHFA has not initiated any new housing construction in more than six years despite having approximately $14 million available from gross receipts tax revenue. She claims that staff within the planning and construction division improperly participated in procurement evaluation panels despite conflicts of interest, and that her warnings about these practices were ignored.
The lawsuit also alleges irregularities within VIHFA’s affordable housing development programs, including unauthorized approvals of tax exemptions by unqualified staff and pressure from a contractor for Berry to sign off on questionable documents — which she says she refused to do. Berry further claims she flagged excessive landscaping expenses totaling up to $100,000 annually for undeveloped lots.
According to the complaint, Berry raised concerns about a construction manager allegedly approving payments for D&S Trucking and Falken Security despite not being assigned to their projects. The manager reportedly told Berry he was acting on instructions from Clendinen, who allegedly dismissed Berry’s objections. Berry notes that the owners of D&S Trucking, Davidson and Sasha Charlemagne, were later indicted in a U.S. Department of Housing and Urban Development fraud scheme, and that Clendinen subsequently sought retroactive approval for a contract extension with Falken.
Berry alleges that retaliation followed her efforts to raise these concerns. She claims her work computer experienced unexplained technical issues shortly after reporting financial mismanagement and that she was abruptly terminated without prior warnings or performance-related complaints.
In one instance cited in the lawsuit, Berry says she traveled to St. Thomas in June 2024 to meet with Jones to discuss her concerns. Instead, she alleges that Jones stood over her while she remained seated and cautioned her against documenting issues, warning that doing so could harm her career.
The lawsuit also points to alleged mismanagement of HUD-funded projects under the EnVIsion Tomorrow program, including improper procurement practices and excessive administrative spending. Berry claims that noncompliance resulted in disqualified projects and unpaid vendors.
Berry, who is represented by attorney Lee Rohn, filed the suit under the Virgin Islands Whistleblowers Protection Act, seeking damages for wrongful termination and calling for accountability within VIHFA.
The Charlemagnes’ case is connected to former VIHFA Chief Operating Officer Darin Richardson, who was convicted in March 2025 on multiple counts including bank fraud and money laundering and is awaiting sentencing. Richardson awarded a contract to Island Services Group LLC for the management of lumber the Federal Emergency Management Agency provided to rebuild hurricane-damaged homes after receiving $107,000 from ISG co-owner Morris Anselmi. He also fraudulently obtained a construction loan from Banco Popular. The Charlemagnes were charged in connection to Richardson’s case. They are awaiting trial on charges related to the theft of disaster relief program funds. Davidson Charlemagne’s company, D&S Trucking, allegedly stood to gain vastly inflated annual fees from VIHFA to store and manage the wood on St. Croix as ISG’s subcontractor.
While the lawsuit is pending, senators discussed VIHFA’s operations as the agency moves forward with a major development initiative. That initiative is the Thatch Farm lease, a 40-year agreement granting Atlanta-based The Benoit Group access to 4.7 acres of government-owned land at Parcel No. 68A Estate Lindberg Bay. The proposed $66 million development would include 126 affordable housing units.
The Virgin Islands Legislature approved rezoning the parcel from Public (P) to Residential Medium Density (R-3) to accommodate the project. During a Committee of the Whole meeting on October 29, 2025, senators raised concerns about construction costs, the site’s steep terrain, and the project’s reliance on federal funding, including a planned request to VIHFA for $49 million in Community Development Block Grant funds.
One lawmaker examined professional connections between Jones and The Benoit Group. Senator Marise James noted that both Jones and the firm were credited with revitalizing the former Bowen Homes site in Atlanta. The Benoit Group’s chief development officer, Torian Priestly, confirmed knowing Jones since his tenure in Chicago.
James said her questioning stemmed from broader concerns about VIHFA’s handling of residents on the private side of the former LBJ Gardens housing community on St. Croix, where demolition is underway. She argued that those residents should be fairly compensated before VIHFA advances new development projects or funding requests.
READ MORE: LBJ Gardens residents demand fair compensation as VIHFA offers to purchase their properties
Jones’ hiring was supported by then–VIHFA board chair and former Office of Management and Budget Director Jenifer O’Neal, who at the time cited his leadership experience and vision. O’Neal is now awaiting sentencing in a federal bribery case following her conviction on December 11, 2025, alongside former Police Commissioner Ray Martinez.
O’Neal also has ties to The Benoit Group. In April 2025, the company submitted an Adjacent Ownership Certification form to the Office of the Lieutenant Governor listing O’Neal as its contact for properties adjacent to Parcel No. 68A Estate Lindberg Bay, which is owned by the Virgin Islands Port Authority. It is the same parcel the government leased to The Benoit Group.
When the rezoning vote was taken on October 30, 2025, James joined Senators Clifford Joseph Sr. and Franklin Johnson in voting against the measure. The rezoning passed by a 10–3 vote.
Jones said in April 2024 that his leadership philosophy centered on honesty, transparency, and community engagement, emphasizing that he did not come to the Virgin Islands to replicate past projects but to build on existing momentum and listen to residents and staff. His departure leaves VIHFA navigating major development plans, federal funding decisions, and public scrutiny at a critical moment for affordable housing in the territory.
