diff --git a/src/System.Management.Automation/engine/PropertyAccessor.cs b/src/System.Management.Automation/engine/PropertyAccessor.cs
index 6a63302ad..15203fa24 100644
--- a/src/System.Management.Automation/engine/PropertyAccessor.cs
+++ b/src/System.Management.Automation/engine/PropertyAccessor.cs
@@ -134,7 +134,6 @@ namespace System.Management.Automation
     {
         private string psHomeConfigDirectory;
         private string appDataConfigDirectory;
-        private const string configDirectoryName = "Configuration";
         private const string configFileName = "PowerShellProperties.json";
 
         /// <summary>
@@ -147,27 +146,50 @@ namespace System.Management.Automation
         internal JsonConfigFileAccessor()
         {
             //
-            // Initialize (and create if necessary) the system-wide configuration directory
+            // Sets the system-wide configuration directory
             //
             Assembly assembly = typeof(PSObject).GetTypeInfo().Assembly;
-            psHomeConfigDirectory = Path.Combine(Path.GetDirectoryName(assembly.Location), configDirectoryName);
-
-            if (!Directory.Exists(psHomeConfigDirectory))
-            {
-                Directory.CreateDirectory(psHomeConfigDirectory);
-            }
+            psHomeConfigDirectory = Path.GetDirectoryName(assembly.Location);
 
             //
-            // Initialize (and create if necessary) the per-user configuration directory
+            // Sets the per-user configuration directory
             //
-            appDataConfigDirectory = Path.Combine(Utils.GetUserSettingsDirectory(), configDirectoryName);
-
+            appDataConfigDirectory = Utils.GetUserSettingsDirectory();
             if (!Directory.Exists(appDataConfigDirectory))
             {
-                Directory.CreateDirectory(appDataConfigDirectory);
+                try
+                {
+                    Directory.CreateDirectory(appDataConfigDirectory);
+                }
+                catch (UnauthorizedAccessException)
+                {
+                    // Do nothing now. This failure shouldn't block initialization
+                    appDataConfigDirectory = null;
+                }
             }
         }
 
+        /// <summary>
+        /// Enables delayed creation of the user settings directory so it does 
+        /// not interfere with PowerShell initialization
+        /// </summary>
+        /// <returns>Returns the directory if present or creatable. Throws otherwise.</returns>
+        private string GetAppDataConfigDirectory()
+        {
+            if (null == appDataConfigDirectory)
+            {
+                string tempAppDataConfigDir = Utils.GetUserSettingsDirectory();
+                if (!Directory.Exists(tempAppDataConfigDir))
+                {
+                    Directory.CreateDirectory(tempAppDataConfigDir);
+                    // Only assign it if creation succeeds. It will throw if it fails.
+                    appDataConfigDirectory = tempAppDataConfigDir;
+                }
+                // Do not catch exceptions here. Let them flow up.
+            }
+            return appDataConfigDirectory;
+        }
+
         /// <summary>
         /// This value is not writable via the API and must be set using a text editor.
         /// </summary>
@@ -180,7 +202,7 @@ namespace System.Management.Automation
             // Defaults to system wide.
             if (PropertyScope.CurrentUser == scope)
             {
-                scopeDirectory = appDataConfigDirectory;
+                scopeDirectory = GetAppDataConfigDirectory();
             }
 
             string fileName = Path.Combine(scopeDirectory, configFileName);
@@ -215,7 +237,7 @@ namespace System.Management.Automation
             // Defaults to system wide.
             if(PropertyScope.CurrentUser == scope)
             {
-                scopeDirectory = appDataConfigDirectory;
+                scopeDirectory = GetAppDataConfigDirectory();
             }
 
             string fileName = Path.Combine(scopeDirectory, configFileName);
@@ -236,7 +258,7 @@ namespace System.Management.Automation
             // Defaults to system wide.
             if (PropertyScope.CurrentUser == scope)
             {
-                scopeDirectory = appDataConfigDirectory;
+                scopeDirectory = GetAppDataConfigDirectory();
             }
 
             string fileName = Path.Combine(scopeDirectory, configFileName);
@@ -251,7 +273,7 @@ namespace System.Management.Automation
             // Defaults to system wide.
             if (PropertyScope.CurrentUser == scope)
             {
-                scopeDirectory = appDataConfigDirectory;
+                scopeDirectory = GetAppDataConfigDirectory();
             }
 
             string fileName = Path.Combine(scopeDirectory, configFileName);