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Bug in Housing Authority System Causes Checks to Bounce

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The V.I. Housing Authority reissued the six checks that recently bounced due to a glitch in its payment system as soon as it was notified, Director Robert Graham said Tuesday.

He said the checks bounced as the bank worked out the bugs in a new system aimed at preventing fraud in the Housing Choice Voucher Program. This program was previously called Section Eight.

According to Graham, attempted forgeries happened with four checks in 2013 but the bank caught them before they were paid and implemented a new system.

“Three of those checks were for more than $1 million,” he said.

He said 898 checks were issued in January under the Housing Choice Program, out of which 562 were direct deposit and 336 actual checks.

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