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Item #33 - Discussion Item
-lanuel Gonzalez-Goena.""°N 2469 SW 14 Street Nliami FL 33145_.,1 (305) 643-6149 ,... i Irk � z9 /y96 ) rj 'ThM 0 DALSystem. 1155,f—�JJNNI200111- e 00110:3 Increased Profits With Modern Concrete Technology 1 BR i 2 BR 2 ER i ER E= Z CZ3,= E;= I BR 2 ER 11 2 BR ER Entry 1 BR - 698 square feet Portico 2 BR - 937 square feel. En !ry Portico [ I BR 5 sql,r R _ a , " 2' BR 87 Apartment Elevation and Building Plan for a Project Utilizing Tre MODAL System Submitted Into the public record in connection with item 34 on Walter Foernan City Clerk 96- 191.1 k.— 1-4 TUN. "I Its ` ' 1• .`� ,.u^ fa��.i.� .}r. ~� Ir•' • ow P5�1;! J• 1� �K �i1 1. ��y� ..•fff �� A ^1 -A , ismlip it _! 44 Jwj 4" ; MifS `` R � r Isk 1 . 4• Wf '35. "' :t. t`tv'•� .a � !+-•'� +r ti.., x �71'i:r4+y .• i 'pJ���-,�!'f�; t r•?�j'i I ,a . ;t""'^" a �.tis .j =� -.►r Ff�r k - s tw wag PIP Lit, -77 � F �1 rwTlr Submitted into the record in connection THE MOLD AND POURING THE CONCRE�Bn�'�-- on 3s, CLOSING Walter Ft Cit; Ap 1 ' - _ OPENING THE MOLD AND LIFTING HOUSE ONTO CARRIER 9r- k, Submitted into the public record in connection with- TRANSPORTI�,iG HOUSE TO HOMESIM-n SLk_ on 3l k.f-A4 Waiter FooMan City C!ark STACKING W:'OSTOR', TO.%t:HOUSF r.1,)ClUt E� 963- �1,1 l 1a-0cfeM CASH FLOW ANALY{1{ �• 1&4)cI-M f14: IV1e7OR1 LWO1 ..... COST ........... EOUfTY BUDGET . f3OeNO 1 a a 1 s e 7 s e to It tt to ..sass...• .....fir.. a saes....... .......... .......... ........... a......... .......... .......... .......... ........ .......11 ........ ........ .a...... ........ 7NTN: ..... ........... • a 3f$A= 731AN 1,15I.Sm 1,77e,1e4 2.557.7D0 3.102AOs 3A33,732 400.436 e.4oXwo IL13C ae 4,S14St7 3.s15a57 ZkOAZO .......... ......... ............ .......... .......... ..................... .......... r......... .......... ........ ......su .r...... . `• ........ ........ . .. 537A00 ¢37AOq O. 0 0 0 0 p 0 0 6 (► p 0 0 p ,ANA35 11e3.42M 1.741ju . 0 375A0o 375A00 smoz e00A00 t00A00 /00A00 1O0A00 0 e0A00 Sea l a O O p "IsA00 (53+A00) 4.7s7.100 . 0 O 0 200A00 05.0475A00 00 575A00 575AOD 575A00 500A0) 450A00 430.0w 2WA00 20O.00o 125.OW 0 125MO . 125A00 0 0 a 0 0 0 0 .0 172.5W 0 17zs00 . 0 9.000 SA00 eA00 SAW@A00 SAW SAWIIA00 17 SA07 p SA00 0 eA00 0 911Z 0 e.000 aoJow 0 eoAW . 50A55 a o 0 0 0 0 o a 40AW 140A M 0. 0 0 0 0 0 0 0 0 0 7 p o 0 0 0 0 0. o 0 0 0 0 0 o a e 0 0 0 0 0 32DA00 O 32OA00 . 0 0 0 0 s0A00 0 O 0 1ooAoo a O o 706Z 0 0 0 O ° 100.0; O50AM O 4WA0o . 0 >SA00 25.500 25A00 23A00 23A00 25A00 25A00 7SA0p 25AC0 23A00 7I5A00 SA00 25.400 aim 0 SA00 . 0.000 ° 0 0 0 O 0 0 0 0 O 0 O p 50'DW 0 so 25AW ° 0 0 0 0 0 0 0 0 0 0 23AOO p fs o 0 0. o 0 o p o 0 0 0 0 0 0 0 0 0 .Aoo ° 70A00 ' 70A00 357."2 0 3a3. 2 . 0 Cato SA67 GAU 13t21 19,17e 23AN 29A= 25.103 /1XA ISAee 22AM 27" 19.10 $1.155 0 s1,t55 . aASS 4.101 (,tot f,10/ 7A01 e.101 7.101 7.1(M 7.701 sA'* 11.051 4A31 2A01 3a31 3: • a,sASS OtSAN 41SAM c4A25 751A22 ttls,arto 741.145 740.M e12,004 r co.W17 4001.00 1173A10 =OAN 357AN ............................... . es52222 ... a.....a CIAO230) a ......... sweA55 . ......... 30Ae5 .721A5e 1.151.20 1"41.154 2157X5 3.1SZ5411 SA33= 4,e50,135 5.4e3.310 e.131.9m e.73et17 smlla 7 3.MA20 2.e05A55 ...................... .......... ..................... .......... .......a.. .......... ........ ... a.... [1F UNITS 1{fO63 INCOME .............s.. ........ ........ • 05ADM It? (10A53.200) U i —r ' 0 0 o CERTIF. t22a•Aoq q.3ooAoq fl aifoAoo) II,tt2Ao0) 0 0 � 7 J 0 O 0 UNITS CLOSED. IZ Q UNIT{ 23 UNITS 25 UNITS 20 UNITS O 'A U 1p (t0AS1200) V C�J Y c!) 10A53.200 AVERAGE SALE PINCE 4I5A00) c • p 11=9 W . . **dI) 3A02 C UMlAAMS- C G (1.S -MM U NET PROCEEDS t.M.Sto �W., ........... DELIVERY. 12MOt7iN wo2,sst) LESS. w 2 . CLO6NGCOST. O 2 ..:....� 1 � ps71 . om — NETREPAYYENT 0 0 CZMA001 0a00A00) (laS0A00) U,ntooq 313A55 731ASO l,tSlA" 1,77s,161 2.557.0E 3.192.55E 3.933.732 4A50A M SAW3m e,131AOs 4A14,S47 3.048.337 2.5".420 1.7e.1Ae5 ...... ........... .......... ......... ............ .......... .......... ........a............ .......... ........a. .......... ........ ........ ........ 042AUAOJ ..a.a... sa.s.r.. aar.as.s co ,' % -j/ VALUE MUCARE 10,0044 UPl14>C tO.Oteai f// �,/y��J JJj�^`�r7 ,''"T / CASH SLOW AHACTf#f me: TC ✓ ADVANCES: COST EOURY BUDGET . CLOSING i ] i —9 ............ •v...v .ar.var.aw v.aa !w ra..aaalilO,t3s� 1 { ......... M • T S S in 111 BALANCE-SEGNNNG OF UCWW' w �1 a •i a• aaaiaaalaa llw.aa.... ....vl.aar larraraaia aa,aa..a rilaiaau aaa aaa aaaaaaaa al..�f.r a. ..................... ..w.w..r.,r r.r.r..r.. r..r...s. .....s..,,.s t,t3t ...s..s... .IM #,T7S.iS4 2A57.205 ....a. .rrso soas.l,. ].fv?ASO 3A15 ,77. 1....S { ARILWi i.1i1AN 4At1Aa LAND MAN (SSTppq) o . 0 s.l.o.l.. .lis...o. ..oas.... 0 s.....s,.w a..us.. .sii.0 orsws! .....w.....,.w., ... SttEIMPROVEMENT TAM.605 (iSitip 1,74/,]62 . O ]7SAOD ]73A00 v O HOUSE CONSTRUCTR7N 5.719,000 p01,Soo} 4,757.10a . 0 0 t00Ao0 YOOA00 iDA00 M.]Ikt 0 0 0 ARCKTECTURAL 125,00o O 125A0D . 125A00 a O 4MIM 4TSA00 57SA00 573A00 S7SA0v SwAvt 430A00 450A00 200A00 SALES OFFICE ti2,500 0 1T2',300 s 0 v 0 0 0 i i0p l i00 0 O IEG►-b : � .at t ROAM a SCAM s eodm SA00 iAaO tz o SA00 km iA00 i .lO7 iiOD S.l00 i.S00 MUN1ATENT '`ISM 40A00 IMAM0. 0 a 0 0 v a O 0 4 > 0 0 O NISALES o 0 O s a a o e o O a o o a0 o a a CONTING CONTN6'ENCIES S2DAOD o ]20AVD . O 6 O 0 0 0 0 0 e e 0 a ADLO RSTRATIVE 4SO.ow O 4SMA00 a 0 0 SDAM 0 25= mz O O 100A00 0 70A00 0 0 SO(. STUDIES eim a SAOD s SAM 23lZ 25Ao0 � 25im 4 2SAo0 25A0o 23A00 25ACO 25im STAG 25,5M INSURANCE SOA00 O IOA06 . 25AW 0 O PERM.ANET COIAVAIIENT FEES 0 o O r 0 a o v 0 0 O 0 0 a 0 0 25Aoo COMMISSION B.S. (11%) 70A0o 0 70Ao0 . 70AOa 0 0 0 0 O 0 0 0 0 O 0 INTEREST .361.155 O . O a O O a 0 0 0 a 0 0 0 FRESERVE (IM%)Sf4) DRAWING FEE (tt25L} 51.195 0 it, s 41.155 iAlS 4,101 S,4S7 l,pS U,]29 Yl./7S 4,SOt 2fAY4 2eAW 25./!S 41,21.a 4SAS! 33AN 4.101 9.101 7.1101 6,101 T,101 7,10/ 7.T0Y SJ'A SAv/ 4A311 2AM TOTAL ADVANCES: ' ......••••• .................... s • ]15Al5 41SAS4 I1lpS S21,Si{ '781A22 i35;1l0 74t,14S 71i,7O4 112.1104 iU'.SIT i0i.M0 S2]AW 290Ai1 TOTAL: 5,582.2t42 (1,]0..161) 4'.2TeleS . ]13At15 ,7]4}56 1,U1.7M6 1a70,Yi1 "� ................. ......... r ................. .......... 2S5T.20i ].1S2ASv .l.sai...... ]A03.T]2 4AS0.474 5.103,34v i 11" f t]SA4T {ASS.T37 ].tlS.42A PRICE IH IOF 11H1TS CROSS NCOLE ,ssss.oa...rs.a. .....3.1= .....vs.. .. . .w..i... l..ry. .. ...... .. ..... . ...... .. . RSAOW 107 (10AM3,200) • i� . 0 0 0 0—E 0 CEYM .= cu ., #L:NA00) #1.100A00) tI.3MAM UNITS CLOSED: Q- r 40 UNITS 25 U NFTS 25 UNITS 20 t 1 L L , ti7 (IOA53AM gal J U GROSS INCOME LOAN 10.W.200 AVERAGE SALE PRICE 455XIM q 'O ECtMY 6i1 lowivil"(1CtIlAA SAU CUttfATW- 0 4t•.�4. —"' NET PROCEEDS PROFIT 1,3"Ato PROFIT PER UNIT( } ••••••• Cm DELIVERY. 12MONTtt p502A2Y) LESS: '0 i .,....i. 1co CLOSING COST. j O IOE. PROFIT/£Ct]TY. ,.Cb ill ,CST I VALUE . p-M AAN / VALUE . (0.?q . AANTGCGT . 0A0 NET REPAWAI M lAt.ANCE• END OF t10NTH: 0 0 (2?24A00# (1,SSOA00} {t,0e0A00) ! ................. .......a.. .. r.rr...r a....r.. ..rs.....s., ]1SAes r..r.rr... 7]1,SlO 1,151.30 1.T7S.1N 2-557.205 2.192ASS ]A30.722 ls...sr r.._..................... 4ASo,436 6.40],?A0 i.Ui/Oi 4,St4A17 ].ib, SST 2.Sb.4� R42.6?SA" .......... .......... ..................................................... 14 is 1S t7 1a TOTAL ....................................... I...7MM ......... scat: taaan► ........ .o0-2108saa ........................ .......... R.NA25) 0 O 0 0 O p a o a o 0 V41.2a2 11Z100 0 0 0 0 4.70.100 0 O O 0 O 12J= saoo oAM SAoO vim o.5a0 1722M O O 0 O O soA00 0 0 0 0 0 a a 0 0.' a2oAoa 25A00 255Z 25AZ 25A00 2a_-m "0A00 0 0 0 0 0 SAM 0 0 0 O 0 a0JRK10 O 0 O p p 0 O O O 0 0 "AM 12.4 0 0 0 0 316.510 1.472 351 .551 551 210 0/.155 1OZ127 25.451 25.451 25.451 20.160 a.21+1A'22 IASC112 ............................................... 670A00 t1 e"% (t.Z72A2S) �'S. ,ito,.277� 14ABYAN 41.11Z000) (t.112AO0) t1.1t2AM (1.112A00) pax" (HIA52.200} UI,M 21) UNITS 20 UNITS 20 UNITS 7 UNITS (1.112A00) (1.112000) (1.112AM (/.1tZ000► (100.+ % sw.s12 p2.tl7) ua00A08} (Z2as.52S) (Z72SAM S.724,005 ...... ........... .............. I o=--D, - .: } QU u o c� co cis p v 'C7 � 'i r/ a5 E co L I is 17 tf TOTAL ..s N,nY ................................ Rs2. 1 11.3wmm ........ PANJM ........s ° ..e.... ........ 1.t41aaa O p p 4,757.100 0 0 p p 125JWC 0 SAM fA00 fAoo 9.3m 472J600 0 p p eoAoo 0 ° o p o 0 O p O p o 0 p 0 32DA00 a a—'-W 25—W 253W 253pp sf0AM 0 0 o *.OW 0 0 0 0 50AN 0 o 0 0 ° ° 0 p o "Aw 0 0 0 p 316�tf 0 351 331 ass 61.135 351 35.437 35.451 35.451 39,158 5.214AO » .... fat AaSi ........ ........ pf f.377) ................ 14Aa7Aw 12A M 11,112A00) (1.172Aa0i cw m MAW" S 20 LOOS 20 UWTS 7 tP9TS 0 .� 3 E LL c o C p U C E � 0 � a) 2AM 111125opl O,112.0051 PP." Z43T) {1aoeAaal 12aes. 1 92.7MAM 2.7MA13 ... ........ ........ ........ .......... 1 �\ Submitted into the Public; record in connec o Allitil` item 3-4-- on Walitr Fo�:,>>u.n City Clerk Multi kx . TillePag&547G4 Wiison.lones. 118491 LEY NUM. 146 APROBADA EL DE JUNTO DE 19bl (enmendl Ley creadora del Banco do Vivienda LEY NUM. 67 APROBADA EL DE JUNTO DE 1965 (enmend= Ley para crear el Fondo c 2 Reserva de Hipotecas Ase- guradas LEY NUM. 4 APROBADA EL 3C DE SEPTIEMBRE DE 198b Programa de Aseguramient, de Prestamos Interinos d Const. -3 LEY NUM. lU APROBADA EL 5 DE JULIO DE 1973 (enmenda 4 Programa de Subsidio LEY NUM. 141 APROBADA EL DE JUNIO DE 198U5 _- Programa de Subsidio LEY NUM. 58 APROBADA EL 1 DE JUNIO DE 1979 6 Programa de Subsidio Fede LEY NUM. 115 APROBADA EL 11 DE JULIO DE 1966 Y LEY 1lb DEL 11 DE JULIO DE 19 7 (Prepago de Subsidio) LEY NUM. 124 APROBADA EL DE DICIEMBRE DE 1993 (Programa de Subsidio de 8 Vivienda de Interes Socia LEY NUM. 121 ARROBADA EL DE DICIEMBRE DE 1993 (Lei Coparticipacion del Sectc 9 Publico y Privado de la Nueva Operacion de Vivier LEY NUM. 47 APROBADA EL DE JUNIO DE 1987 (Ley de participation del Sector 10 Publico y Privado de la Nueva Operation de Viviei ©1990 Wilson Jones Company G- I Chapter UU. 11ol(,+ing Bank and finance Agency of Aterto Rico i SECTION ANALYSIS 901. Housing Bank and Finance Agency of Puerto Rico; crea. tion; purpose 902. [Repealed] 903. Principal office; branches 904. [Repealed] 905. President of the Agency 906, 907. [Repealed] i 908. Loans to Agency personnel 909. Powers and duties of Secretary 910. Purposes and powers of the Agency 911. Additional powers 912. Issuance of bonds 913. Examination and supervision; exemption from Banking Law 914. Government Development Bank as fiscal agent j 915. Loans and donations 916. Deductions from salary of borrowers 917. Tax and impost exemption; liability for debts or obligations 913. Income tax exemption for interest on loans 919, 920. (Repealed] 921. Obligations not to be impaired 922. Definitions 923. Payments to the Secretary of the Treasury § 901. Housing Bank and Finance Agency of Puerto Rico; creation; purpose For the purpose of assisting the Government of the Common- wealth of Puerto Rico in its housing programs, and of developing more effectively its governmental responsibility of promoting the economy of Puerto Rico and the welfare of its inhabitants, there is. hereby created a corporation as a governmental instrumentality of the Commonwealth of Puerto Rico to act, by its authority, under the name of Puerto Rico Housing Bank and Finance Agency which - hereinafter shall be known in this chapter as "the Agency". —June $0, 1961, No. 146, p. 320, § 1; July 23, 1974, No. 218, Part 2, p. 129, § 1, eff. July 23, 1974. 248 Submitted into the public record in conne Pion with y item �AbLf_ Walter 1=oeman City Clerk 96- 191.1 k__ . t Submitted into the pijrlir.. record in connection with item _ on - J Walter Foerna n city clerk ch, 69 11OUMINC RANK T.7 § 903 { HISTORY Amendments-1974. The 1974 Act changed the name of "Housing Bank" to "Housing Bank and Finance Agency". Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. Repeal. Section 26 of Act June 30, 1961, No. 146, provided: "All laws or parts of laws in conflict herewith [section 901-922 of this title] are hereby repealed " Separability provisions. Section 24 of Act June $0, 1961, No. 146, provided: "If any provision of this Act [sections 901-922 of this title], or the application of such provision to any person or circumstance is declared null, the remainder of the Act and the application of such provision to persons or circumstances other than those as to which it is held null shall not be affected by such declaration of nullity." Appropriations. Section 23 of Act June 30, 1961, No. 146, provided: "The sum of one million (1,000,000) dollars is hereby appropriated from any unencumbered funds, effective July 1, 1962, for the expenses and operations of the Bank." Attachment. Attachment of Bank to Department of Housing, see section 441e of Title S. Committee on Finance. ' Creation of Committee on Finance and appointment of members, see section 441e of Title 3. Obligation of loan, banking and credit Institutions to send statement of Inter — eats paid. See note under section 1 of this title. Cross references. Designation of banks, savings and loan associations and trust companies to receive payment of all kinds of contributions, taxes and licenses, we section 85WO of Title 18. Home ownership savings plan among families In housing developments, we sec- tion 301 et seq. of Title 17. $ 902. Repealed. Act July 23, 1974, No. 218, Part 2, p. 129, $ 17, eff. July 23, 1974. HISTORY Repeal. This section, section 2 of Act June $0. 1981, No. 148, p. M. provided that the Bank would be s subsidiary of the Puerto Rico Urban Renewal and Housing Corporation. 908. Principal office; branches The principal office of the Agency shall be at San Juan, Puerto Rico, and it may establish one or more branches anywhere in A249 • Submitted into the publir_. record in connection wittl item 3-4- on / Welter Foeman T.7 § 903 BANKING City 'W69 Puerto Rico. -June 30, 1961, No. 146, p. 320, § 3; July 23, 1974, No. 218, Part 2, p. 129. § 2, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "Bank" to "Agency". Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. See Laws of Puerto Rico 1974. Part 2, p. 129, § 904. Repealed. Act July 23, 1974, No. 218, Part 2, p. 129, § 17, eff. July 23, 1974. HISTORY Repeal. This section, section 4 of Act June 30, 1961, No. 146, p. 320, regulated the compo- sition of the Bank's Board of Directors and the appointment of its members. § 905. President of the Agency The Secretary shall appoint a President, hereinafter referred to as "the President of the Agency" who shall perform his duties under such terms and conditions as may be stipulated by the Secretary. The President shall appoint such officers and employees as he may deem necessary for carrying out the Agency operations. The officers and employees of -the Agency shall be exempt from the provisions of the Personnel Act of the Commonwealth of Puerto Rico, Act No. 345 of May 12, 1947, as amended. The President of the Agency may delegate any of his duties and powers to such offi- cials or employees as he may wish to designate. All offi- cers of the Agency holding office on the date this act takes effect shall continue in office until their successors are appointed in accordance with the provisions of sections 901-922 of this title. -- June 30, 1961, No. 146, p. 320, § 5; June 13, 1964, No. 43, p. 103; July 23, 1974, No. 218, Part 2, p. 129, § 3, eff. July 23, 1974. HISTORY ~ Text references. The Personnel Act of the Commonwealth of Puerto Rico, Act No. 345 of May 2, 1947. as amended, cited in the text, former sections 641-678 of Title 3, was repealed by section 10.2 of Act Oct. 14. 1976, No. b, p. 720. Present similar provi- sions, see sections 1301-1431 of Title 3. Amendments--1974. The 1974 Act changed "The Board of Directors of the Bank" to "The Secretary" in two places, referred to the President as "the President of the Agency", tnd elim- 96 k__ Submitted into the public record in conne Lion with item ► � _ on N-0A 4 Walter Fec-,,,',an Ch. 69 HOUSINCr3Spli111t T.7 § 909 inated the phrase "shall be the Bank's executive officer" in the first sentence; changed "Bank" to "Agency" in the second and third sentences; and added the last sentence. -1964. The 1964 Act deleted requirement of approval by board of directors of appoint- ments made by the President. Statement of motives. Act July 23, 1974, No. 218, contained s statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. Cross references. Board Regulating Rates of Interest and Financing Charges, see section 998a of Title 10. Designation of the President of the Housing Bank and Finance Agency as member of Board of Directors of the Workers Home Foundation, see section 404 of Title 17. §§ 906, 907. Repealed. Act July 23, 1974, No. 218, Part 2, p. 129, § 17, eff. July 23, 1974. HISTORY Repeal, These sections, sections 6 and 7 of Act June 30, 1961, No. 146, p. 320, authorized the adoption of Bank bylaws and the establishment of per diems and traveling expenses for Directors. Prior to repeal, section 907 was amended by Act June 16, 1966, No. 45, p. 180, § 908. Loans to Agency personnel The Agency shall not make any Ioan to the officers, agents or employees of the Agency, or to any private enterprise in which one or more of the officers, agents or employees of the Agency own a substantial interest, nor shall the Agency make any loans on the security of an officer, agent or employee of the Agency, except with the approval, in each case, of the Secretary. -June 30, 1961, No. 146, p. 320, § 8; July 23, 1974, No. 218, Part 2, p. 129, § eff. July 23, 1974. HIBTORY Amendments-1974. The 104 Act amended this section generally. Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. see Laws of Puerto Rico 1974, Part 2, p. 129. § 909. Powers and duties of Secretary The Secretary shall (1) establish the necessary administrative policy for the carrying out of the purposes of sections 901-922 of 251 O i 96- 191.1 T.7 §. 909 BANKING Ch. 69 this title; (2) determine the reports to be rendered by the President and the officers and employees of the Agency, as he may deem it necessary; and (3) render an annual report to the Governor and the Legislative Assembly of Puerto Rico with such recommendations as he may deem advisable for the proper carrying out of the hous- ing financing program for persons and families of low or moderate income. —July 23, 1974, No. 218, Part 2, p. 129, § 5, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "The Board of Directors of the Bank" to "The Secretary"; changed "Bank" to "Agency" in clause (2); eliminated "and the Board of Directors of the Corporation" after "Puerto Rico"; eliminated "low-cost" before "housing" and added phrase "for persons and families of low or moderate income" after "financing program". Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. Transfers. Powers and faculties of former Board of Directors transferred to Secretary of Housing, and Board eliminated, see section 441e of Title 3. § 910. Purposes and powers of the Agency The following shall be the purposes, faculties and powers of the Agency: (a) The Agency shall have perpetual existence and may sue and be sued. (b) To act as depositary of funds for the Commonwealth of Puerto Rico or for the United States of America, and for any agency, instrumentality, commission, authority, municipality or political subdivision of the Commonwealth of Puerto Rico or the United States of America. (c) To lend money, with or without security, and at such interest rate as the Agency may determine, either alone or in combination with other institutions, to any person, firm, corporation, agency or instrumentality of the Commonwealth of Puerto Rico or other organization, when such loans are for the purpose of constructing, acquiring, refinancing, improving, reconstructing, rehabilitating, • . .. = enlarging, or repairing any house used or to be used as a dwell- ing, group of houses, housing developments or any combination of ;,.,:' fi'• ., these, provided the same are for persons and families of low or •':"�- • • = - • ,z:, '• ..r moderate income, as this term is hereinafter defined in section 922 +.: 'N of this title, such loans to be evidenced by mortgages, promissory 252 Submitted into the public record in connection withitem 3. _ton .•.�{6 !'1+�• er 96- 19m i"- Ch. 69 HOUSING BANK T.7 $ 910 notes, bonds, convertible debentures, or other obligations or evi- dences of such borrowers; Provided, That the Agency may retain, negotiate, or in any other manner dispose of such mortgages, promissory notes, bonds, debentures, convertible debentures, or other obligations or evidences of indebtedness of such borrowers, or the securities obtained through the exercise of the rights and/or privileges contained therein. (d) To lend money to any person, firm, corporation or other organization engaged in the construction of houses or housing developments, for the purpose of acquiring the necessary equip- ment, machinery, building materials, and lands for the develop - went of housing projects for persons and families of low or moder- ate income. (e) To invest its funds in direct obligations of the United States of America or obligations guaranteed as to both principal and inter- est by the United States of America, or obligations of the Com- monwealth of Puerto Rico or obligations guaranteed as to both principal and interest by the Commonwealth of Puerto Rico, or obligations of any agency, instrumentality, commission or authority of the United States of America or the Commonwealth of Puerto Rico, or obligations, including mortgages, insured or guaranteed under the housing laws of the United States of America. (f) To borrow money with or without security, at such interest rate or rates and contract debts for its corporate purposes, includ- ing the providing of funds for any program authorized by the laws of the Commonwealth of Puerto Rico or the United States of America the purpose of which is to provide housing for persons and families of low or moderate income, the refinancing of bonds theretofore issued by it and the refinancing of bonds theretofore, issued by the Puerto Rico Urban Renewal and Housing Corpora- tion for any of the purposes of sections 86-94 of Title 17, upon such terms and conditions as the Secretary may from time to time determine, and to make, execute. and deliver trust indentures and :f other agreements with respect to any such borrowing, debts, issu- ance of • bonds, notes, mortgage bonds, obligations secured by ' mortgages, certificates evidencing a participation in a pool of mortgages or other obligations, in such form, secured in such manner, and subject to such terms of redemption with or without premium, and to sell the same at public or private sale for such price or prices, all as may be determined by the Secretary. (g) To invest in, purchase or make commitments to purchase, as - :•'.�':. �, well as to accept assignments of notes and mortgages evidencing 253 • Submitted into the public record in connection wittD item 1_ on 't u r b Walter Foernan City Clerk 96- 191.1 k, T.7 § 910 BANKING Ch. 69 loans for the construction, rehabilitation, purchasing, leasing or refinancing of housing for persons and families of low or moderate : income. (h) To grant loans to entities engaged in granting mortgage - security loans under such terms and conditions that will guarantee that the funds so lent by the Agency will be used by said entities to grant new loans for housing to persons and families of low or mod- erate income. (i) To acquire real or personal property, or any interest therein, including easements, by purchase, exchange, gift, assignment, transfer, foreclosure, lease or otherwise; to hold, manage, operate and improve real or personal property; to sell, assign, lease, encumber, mortgage real or personal property or any interest there- in, or constitute deeds of trust or mortgage liens on any interest of the owner, holder or custodian thereof; and to release or relinquish any right, title, claim, lien, interest, easement or demand however acquired, including any equity or right of redemption on property foreclosed by the Agency; and to conduct any of the foregoing operations through public or private sale, with or without bidding, notwithstanding the provisions of any other law. 0) To lease or rent as lessor or as lessee any dwellings, houses, accommodations, structures or facilities to or from private parties to fulfill the purposes of sections 901-922 of this title. (k) To enter into agreements or other transactions with and accept grants and loans and the cooperation of the United States of America or any agency thereof to promote the purposes of sections 901-922 of this title, including but not limited to the development, mainte- nance, operation and financing of housing for persons and families of low or moderate income and to do any and all things necessary in order to avail itself of such aid and cooperation. :. (1) To make and enter into contracts and agreements with quali- fied financial institutions or any agency or instrumentality of the Commonwealth of Puerto Rico for the servicing and processing -of mortgage loans for housing for persons and families of low or moderate income. (m) To establish and revise from time to time, and collect fees and charges in connection with loans made to loans administered by the Agency under the provisions of sections 901-922 of this title. y, (n) To have an official seal and to alter same whenever deemed advisable. vt',' (h) To appoint, employ and contract far ,the services of officers, 254 Submitted into the public record in connection with item 3M— on f Walter Foximan City CfePk 96— 191.1 k__ i w Ch. 69 HOUSING BANK T.7 § 911 agents, employees and professional assistants and to pay such compensation for their services as the Agency may determine. r (o) To adopt and from time to time amend or repeal the rules j and regulations deemed necessary to carry out the powers and i purposes of the Agency in the conduct of its business, provided said rules and regulations are not incompatible with the provisions of sections 901-922 of this title. j (p) To do any act necessary or convenient in the exercise of the + powers herein granted. (q) To establish, introduce, or procure insurance for payment of the mortgages of the borrowers who become disabled or die and such other insurance as may offer protection to the borrowers in the event of fire, hurricane, earthquake, flood or any other disaster. —June 30, 1961, No. 146, p. 320, § 10; April 22, 1964, No. 13, p. 47; July 23, 1974, No. 218, Part 2, p. 129, § 6, eff. July 23, 1974, i! HISTORY Amendments-1974. The 1974 Act amended this section generally, and added new subsections (p) and M. --1964. Subsection (cy. The 1964 Act extended lending power to acquisition and refinanc- ing of dwellings. Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives, See Laws of Puerto Rico 1974, Part 2, p,129. Cross references. Direct sale of surplus property of agricultural use to bona fide farmers, stand- ards, see section 1954 of Title S. Insured Mortagea Reserve Fund, see sections 261-271a of this title. Registry of contracts, maintenance. copy of contract to be sent to Office of Con- troller, see section 97 of Title 2. § 911. Additional powers ' In addition to the purposes, powers and faculties mentioned above, the Agency shall have the following. (s) To perform savings and loan operations, as this term is herein- after defined, for the purpose of raising resources that will make possible the granting of credit to participating members of such plan in accordance with regulations promulgated to said effect by the Secretary, with a view to facilitating the construction, recon- struction, enlargement and acquisition of housing for persons and families of low or moderate income. -f Submltfed jnto the public fecord in connection with item_ on�t1,., Walter Fac, rman City Clerk 96_ 191.( 1, ,r.7 § 911 BANKING Ch. 69 (b) To act as depositary of mutual deposits under the above - mentioned savings and loan plan, and it may lend the funds so accumulated through the mutual contributions thus made, to sub. scribers of savings and loan contracts, through the granting of mortgage credit to such subscribers. —June 30, 1961, No. 146, p. 320. § 11: July 23, 1974, No. 218, Part 2, p. 129, § 7, eff. July 23, 1974. FlimRY Amendments-1974. The 1974 Act changed "Bank" to "Agency" in opening paragraph. Subsection (a): The 1974 Act changed "Board of Directors of the Bank" to "Secre- tary" after "regulations promulgated to said effect by the", and changed "low-cost dwellings" to "housing for persons and families of low or moderate income". Subsections (c)-(f): The 1974 Act eliminated these subsections. Statement of motives. Act July 23. 1974, No. 218, contained a statement of motives. See haws of Puerto Rico 1974, Part 2, p. 129. Cross references. Authority of Secretary of the Treasury to negotiate and contract collection of all kinds of taxes with banks, see section 475s, of Title 13. § 912. Issuance of bonds (a) The Agency is hereby authorized from time to time to issue its bonds in such principal amounts. as, in the opinion of the Secre- tary, shall be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on bonds of the Agency for such period as the Secretary determines, the.establishment of reserves to secure such bonds, and for paying all other expenditures of the Agency incident to and necessary or convenient to carry out its corporate purposes and powers, The bonds issued by the Agency may be secured by the good faith and credit of the Agency and may be made payable from the whole or part of the gross or net revenues derived by the Agency under the provisions of any loan agreement, mortgage purchase agreement, or other authorized agreement, or from any other revenues of the Agency, except revenues pledged and to be covered into the Insured Mortgages Reserve Fund established by sections 261-271a of this title, by assignment of any such agreements; all in conformity with the trust indenture or resolution authorizing the issuance of the bonds. The resolution or resolutions authorizing the issuance of bonds or the trust indenture guaranteeing same may contain provisions, which shall be a part of, the indenture with the • 256 Submitted into the public record in connection with item 3__N __• on If - f, Wafter iict?rrian C.,Lv kcle i i Ch. 69 HOUSING BANK T.7 § 912 j �• holders of the bonds issued under said resolution or resolutions, with respect to the warranty and the establishment of a lien on the revenues and assets of the Agency, the establishment and mainte- nance of sinking funds and reserves, limitations of the purposes to which bond proceeds may be applied, limitations upon the issuance of additional bonds, limitations upon amending or supplementing any such trust indenture or resolution, the vesting of rights, pow- ers and privileges in and the imposition of obligations and liabili- ties upon trustees under any trust indenture or resolution, the operation and maintenance of housing facilities for persons and families of low or moderate income and the fixing of fees, rents and charges for the use or occupancy of housing facilities for per- sons and families of low or moderate income, the carrying of insur- ance with respect to any such housing, the rights, powers, obliga- tions and liabilities arising in the event of a default or a breach of any obligation under such trust indenture or resolution, and with respect to any rights, powers -or privileges vested in the bond- holders as security for the bonds to enhance the marketability of the bonds. (b) The bonds may be authorized by resolution or resolutions of the Secretary and may be of such series, may bear such date or dates, may mature at such time or times, not exceeding fifty years from their respective dates of issuance, may bear interest at such - rate or rates not exceeding the maximum rate then permitted by law, may be payable semiannually, may be in such denomination or denominations, may be in such form, either coupon or regis- tered, may carry such registration or conversion privileges, may be executed in such manner, may be payable in such medium of payment, may be subject to such terms of redemption, with or without premium, may be declared due or to be due and payable before their maturity date, may provide for the replacement of mutilated, destroyed, stolen -or lost bonds, may be authenticated in ,• . Y;.',,k`'"' such manner and upon compliance with such conditions, and may :: .. . • : contain such other terms and covenants, as such resolution or reso- lutions, may provide. The bonds may be sold at public or private We for such price or prices as the Secretary shall determine; Pro- vided, however, That refunding bonds may be exchanged for out- standing bonds of the Agency on such terms as the Secretary may deem to be in the best interests of the Agency. Notwithstanding the form and condition thereof, and in the absence of an express recital on the face thereof that the bond is nonnegotiable, all bonds of the Agency, including any coupons appertaining thereto, shall at 267 Submitted into the public - - - record in connection -with •item _J,_A on 'tY_-46 Walter Foei'Tian 96- 191.1 k, r T.7 §.912 BANKING Ch. 69 all times have, and shall be understood to have, all the qualities and incidents (including negotiability) of negotiable instruments under the applicable law. The bonds may be payable at the place or places within or with- out the Commonwealth and shall be evidenced in the manner, and may contain those provisions not inconsistent with the provisions of this act, as may so appear from the proceedings of the Agency through which the issuance of bonds is authorized. (c) The proceeds of the bonds of each issue shall be used solely for the purpose or purposes for which such bonds shall have been issued, and shall be disbursed in such manner and under such re- strictions, if any, as may be provided by the Agency, in the trust indenture or resolution providing for the issuance of such bonds. Except as provided in section 910 of this title, bonds may be issued under the provisions of sections 901-922 of this title without obtaining the consent of any department, division, commission, board, body, bureau or agency of the Commonwealth, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by sections 901-922 of this title, and the provisions of the resolution authorizing the issuance of such bonds or the trust indenture securing the same; Provided, however, That the provisions of sections 581-595 of this title, as amended or to be hereafter amended. shall be applicable. (d) The bonds of the Agency bearing the signature of the officers j of the Agency in office on the date of the signing thereof shall be valid and binding obligations notwithstanding that before the deliv- ery thereof and payment therefor any or all of the officers whose signatures or facsimile signatures appear thereon shall have ceased to be such officers of the Agency. Any resolution authoriz- ing the bonds or trust indenture securing same may provide that j � any such bonds may contain a recital that it is issued pursuant to •r� -� .:; ,• �,', •';°� • _ ' `' '" the provisions ions of sections 901-922 of this title, and any bonds con- , ,, taining such recital under authority of any such resolution shall be conclusively deemed to be valid and to have been issued in con- formity with the provisions of sections 901-922 of this title. Neither the Secretary nor any officer of the Agency executing the -bonds shall be liable personally on the bonds, on bondholders, on'third = - persons or subject to any civil liability by the issuance of such • : �° ' �'~` ' -' :>.. bonds. The Agency is empowered to purchase any outstanding bonds issued or assumed by it with any funds available therefor, at a price not more than the principal amount*or the current redemp- - 268 Submitted into the publl record in connection Witt item .U_, on W&Itcr (=t>rrr;r� 96_ 191,1 ;i. Ch. 69 HOUSING BANK T.7 § 912 tion price thereof including the interest accrued thereon. All bonds thus purchased shall be cancelled. (e) In the discretion of the Secretary any bonds issued under the provisions of sections 901-922 of this title may be secured by a trust indenture by and between the Agency and a corporate trust- ee, which may be any trust company or bank having the powers of a trust company within or without the Commonwealth of Puerto Rico. It shall be lawful for any bank or trust company incorpo- rated under the laws of the Commonwealth, and any state of the United States which may act as depositary of the proceeds of bonds to pledge such securities as may be required by the Agency. In addition to the foregoing, any such trust indenture or resolution or resolutions may contain such provisions as the Secretary may deem reasonable and proper for the security of the bondholders. (f) All revenues and other proceeds derived by the Agency from loans granted, mortgages purchased, and any other agreement for which the Agency is empowered and in connection with which the Agency has issued bonds, except such amount as may be necessary to pay costs, including operating costs of the Agency, incurred in the sale of such bonds, and to provide such reserves, if any, as may be required in the trust indentures securing such bonds, shall be covered as may be provided in such trust indenture into a reserve fund for the payment of the debt. Said fund is pledged, and shall be used for the payment of the principal of the bonds of the Agency as same may become due, for the payment of interest on i said bonds, and for the payment of any redemption premium required to be paid when such bonds are redeemed before their maturity date, such as may be provided in said agreement. Such pledge shall be valid and binding on and from the date it is made, The premiums, rents, charges, loan payments, mortgage pay- ments, and other revenues and moneys so pledged shall be subject to the lien represented by' such pledge immediately upon the receipt thereof by the Agency, without need of the physical deliv- ery thereof or the occurrence of any other act, and said lien shall be valid against all parties alleging to have or having any claim against the Agency, either for contractual negligence or otherwise, irrespective of whether or not such third parties have had cogni- zance of the aforesaid pledging of funds. Neither the trust inden- V ture nor any other instrument by which the pledge of funds herein described is constituted, nor by which the Agency's interest in any revenues is assigned, need be recorded in any particular registry in order to make said lien or assignment valid against third parties; 259 Submitted Into the public record in connection witli item -iq- on •► 4 �b T.7 # 912 BANKING Ch. 69 its recording; on tht, books and records of the Agency shall be suf- ficient to thvsv errects. The use and disposal of the moneys forming part of said sinking► fund for the payment of the debt service shall be subject to the provisions of the trust indenture, and except as may be provided therein, said sinking fund for the payment of the debt service shall constitute one sole fund and shall be available for all bonds issued, without distinction or priority of one over another. (g) The Secretary is hereby authorized to issue refunding bonds of the Agency for the purpose of refunding any bonds then out- standing and which have been issued under the provisions of sec- tions 901-922 of this title, including payment of any redemption premium thereon and any interest accrued or to be accrued as of the date of redemption of such bonds, and, if deemed advisable by the Secretary, for any other purpose of the Agency. The issuance of such bonds, their maturity, and other details thereof, the rights of the bondholders, and the rights, duties and obligations of the Agency with respect thereto, shall be governed by the provisions of sections 901-922 of this title relative to the issuance of bonds insofar as such provisions are applicable. (h) Refunding bonds issued under this section may be sold or exchanged for outstanding bonds issued under this chapter, and, if sold, the proceeds thereof may be applied. in addition to any other authorized purposes, to the purchase. redemption or payment of such outstanding bonds. Refunding bonds may be issued, as determined by the Secretary, at any time on or before the date of maturity or maturities or the date selected for the redemption of the bonds being refunded thereby. Pending the application of the proceeds of such refunding bonds, with any other available funds,. to the payment of the principal, accrued interest and any redemption premium on the bonds being refunded, and, if so provided or per- mitted in the resolution authorizing the issuance of bonds or in the trust indenture securing such refunding bonds, to the payment of any interest on such refunding bonds and any expenses in connec- tion with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by the United States of America or other obligations which shall mature or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the respective dates when the principal there- of with the interest accruing thereon will be required, and which 260 Submitted into the public record in connection witl,) _item_ JU on ''l Walter Foernan City Clerk 95— 191,) k__ Ch. 69 HOUSING BANK T,7 § 914 will be sufficient with other funds available therefor, for the pur- poses intended. (i) The bonds of the Agency shall be lawful investments, and may be accepted as security, for any fiduciary, trust and public funds, the investment or deposit of which shall be under the authority or control of the Commonwealth of Puerto Rico or any officer or officers thereof. --June 30, 1961, No. 146, p. 320. § 12; June 18, 1965, No. 49, p. 91; July 23, 1974, No, 218, Part-2, p. 129, § 8, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act amended this section generally and added subsecs. (d)-(i). -1965. Subsection (b): The 1965 Act transferred to the Board of Directors of the Bank the power, formerly held by Board of Directors of the Corporation, to determine the maximum amount of loans. _ Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. See haws of Puerto Rico 1974, Part 2, p. 129. § 913. Examination and supervision; exemption from Banking Law The Agency shall be subject to examination and annual supervi- sion by the Secretary of the Treasury of Puerto Rico and the Con- troller of Puerto Rico. However, the Agency is hereby exempted j from the terms of sections 1-204a of this title. -June 30, 1961, No. 146, P. 320, § 13; July 23, 1974, No. 218, Part 2, p. 129, § 9, eff. 1 July 23, 1974. Himitr Amendments-1974. The 1974 Act changed "Bank" to "Agency" in both sentences of this section. Statement of motives. �= Act July 28, 1974, No. 218, contained a statement of motives. See Las of Puerto Rico 1974. Part 2, p. 129. t " . Cross references. Fund for Investigation and Audit of FInancial Institutions and Gambling Casi- nos, we sections 7 and 8 of Title 18. 914. Government Development Bank as fiscal agent " 09, The Government Development Bank for Puerto Rico shall act as fiscal agent for the Agency, pursuant to the provisions of sections M 261 Submitted into the public record in connection wit y item ..,�.. on �f - Walter Foeman City Clerk 95- 191.i k, I T.7 § 914 BANKING Ch. 69 581-595 of this title. -June 30, 1961, No. 146, p. 320t § 14; July 23, 1974, No. 218, Part 2, p. 129, § 10, eff. July 23, 1974, HISTORY Amendments-1974. The 1974 Act changed "Bank" to "Agency". Statement of motives. Act July 23, 1974, No, 218, contained a statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. § 915. Loans and donations The Puerto Rico Urban Renewal and Housing Corporation may grant loans or make donations to the Agency under such terms and conditions as are acceptable to both corporations. The Corpo- ration may, furthermore, convey to the Agency, for a consideration or gratuitously, any of its properties, real or personal, that the Corporation shall find it advisable and necessary for the Agency to more properly perform the functions provided in sections 901-922 o; this title. At such date on which all bonds issued by the Corpo- ration for the purposes provided in sections 86-94 of Title 17 have been paid or sufficient moneys are held in trust for such payment, there shall be transferred by the Corporation to the Agency any moneys on deposit in any reserve fund or special reserve fund pur- suant to any resolution or resolutions authorizing such bonds. Such moneys may thereafter be used by the Agency for such of its cor- porate purposes as the Secretary shall determine. --June 30, 1961, No. 146, p. 320, § 15; July 23, 1974, No. 218, Part 2, p. 129, § 11, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "Corporation" to "Puerto Rico Urban Renewal and Hour Inc Corporation" in the first sentence; changed "Bank" to "Agency" in three places; and added the last two sentences. Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. &-e Laws of Puerto Rico 1974, Part 2, p. 129. Cross references. Puerto Rico Urban Renewal and Housing Corporation, see sections 22-25 of Title 17. § 916. Deductions from salary of borrowers Regardless of any provision of law to the contrary, every employer of a public or private enterprise or business employing i 262 Submitted into the pLibpo 11 record in connection twits, Item �- on Waiter Foeman '�.. Iy T lerk r* Ch. 69 HOUSING BANK T.7 1916 any person who is a borrower of the Agency, or debtor of a loan secured by the Agency, is bound upon notice from the Agency of authorization to that effect by the employee, to deduct from his salary or compensation the monthly installment said employee is bound to pay to the Agency by reason of deposits, principal, inter- est, and other charges, under the terms of a savings and loan con- tract made with the Agency in accordance with the purposes of sections 901-922 of this title, as well as with relation to any other type of contract or Ioan executed with the Agency or secured by the Agency in accordance with the terms of sections 901-922 of this title. This provision shall apply to employees of the Common- wealth Government, its instrumentalities and municipalities, Any employer or official, excepting the Commonwealth Government, its instrumentalities and municipalities, who shall fail to deduct or to transmit to the Agency, or to the entity it may designate, the amount deducted by reason of deposits, principal, interest, and other charges owing to the Agency, or secured by the Agency, within fifteen (15) days after each monthly installment falls due, shall be guilty of a misdemeanor. —June 30, 1961, No. 146, p. 320, § 16; Apr. 21, 1964, No. 122, p. 46; June 14, 1965, No. 21, p. 44, § 1; June 15, 1966, No. 45, p. 180, § 2; July 23, 1974, No. 218, Part 2, p. 129, § 12, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "Bank" to "Agency". —1966. The 1966 Act provided that deductions may also be made in connection with loans or charges secured by the Bank. —1966. The 1965 Act clarified that all deductions referred to in this section are ilso applicable to agency employees, instrumentalities and municipalities and at the same time validated deductions realized prior to this amendment. —1964. The 1964 Act in first sentence deleted authority In the Bank to make deductions, Inserted provision for notice for the Bank of authorization for deduction by employee, added provision for deductions for "any other type of contract or loan executed with the Bank', added provision making section applicable to municipal employees, and added penalty provisions. Statement of motives. Act July 28, 1974, No. 218, contained a statement of motives. see Laws of Puerto f; Rico 1974, Part 2, p.129. Validity of deductions. Section 2 of Act June 14, 1965, No. 21, provided: "All deductions made for such purposes prior to the approval of this act are hereby validated." 268 Submitted into the public! record in connection lti-iiaj item_ on .�.p.l_-_�.� "falter Foeri-,. ,..n City 96- 191.1 ,r.7 § 91(i IIANKINfi Ch. 69 Legislative purpose. For texts of reports from pertinent committees of Legislative Assembly on his. tory and purposes of Acts June 15, 1966, No. 45; June 14, 1965, No. 21; and Apr. 21, 1964, No. 12, see Serririu 1.,gimlativo de Puerto Rico, 1966 No. 3, p. 277; 1965 No. 2, p. 216; and 1964 No. 1, p. 108, respectively. § 917. Tax and impost exemption; liability for debts or obligations It is hereby found and declared that the purpose for which the Agency is created is to help the Commonwealth of Puerto Rico in the discharge of its functions and duties with respect to the devel- opment of homes and the promotion of public welfare in Puerto Rico, which constitutes a a public responsibility in all respects in behalf of the Commonwealth of Puerto Rico, and, therefore, the Agency shall not be required to pay any impost, tax or levy on any property acquired or to acquired by said Agency, or on its opera- tion or activities, or on income received by reason of any of its operations or activities. To this end, all bonds, promissory notes, debentures, and other obligations of the Agency, and the income derived therefrom, shall be exempt from the payment of any income tax. The debts or obligations of the Agency shall not be debts or obligations of the Commonwealth of Puerto Rico or of any of the municipalities or other political subdivisions of Puerto Rico, and neither the Commonwealth of Puerto Rico nor any such municipality or political subdivision shall be held liable therefor. All public documents executed by the Agency shall be exempt from the payment of the fees provided by the Notarial Law, sec- tions 1001-1040 of Title 4, and by the act fixing the Property Reg- istry Tariff. —June 30. 1961, No. 146, p. 320, § 17; July 23, 1974, No. 218, Part 2, p.129, § 13, eff. July 23,1974, HISTORY Text references. The "act fixing the Property Registry Tariff", cited in the text. was Act Sept. 2. 1955, No. 3, p. 8, section 20 of which contained the tariff effective at the moment the Housing Bank was created by Act June 80,1961, No.146. Said section 20 of Act No. 3 of 1955, former section 1767 of Title 30, was repealed by section 4 of Act June 20, 1968, No. 67. p. 216, which established a new tariff, former sections 1767a-1767c of Title 30. Said Act No. 67 of 1963 was repealed in its turn by section 6 of Act May 30. 1970. No. 91, p. 240, which established the tariff currently in effect, sections 1767e-1767e of Title 30. Amendments-1974. The 1974 Act changed "Bank" to "Agency". 264 ,Submitted into the public record in connection with items on ' q4 Walter Foernan City Clori" 96)— 1913 I !I Ch. 69 IIUUSIN(i I1ANK T.7 § 921 i, Statement of motives. i Act July 23, 1974,.No. 218, contained a statement of motives, See Laws of Puerto Rico 1974, Part 2, p. 129. § 918. Income tax exemption for interest on loans For the purpose of encouraging and fostering the construction and acquisition of housing for persons and families of low or mod- erate income, the interest on mortgage loans granted by the Agency as well as the interest on the mortgages insured by the Agency shall be exempt from the payment of any income tax. -- June 30, 1961, No. 146, p. 320, § 18; July 23, 1974, No. 218, Part 2, p. 129, § 14, eff. July 23, 1974. HISTORY Amendments-1974. ' The 1974 Act changed "low-cost dwellings" to "housing for persons and families of low or moderate income" and changed "Bank" to "Agency" in two places. Statement of motives Act July 23, 1974, No. 218. contained a statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. ANNOTATIONS 1. Tax exemption -Commonwealth taxes. Mortgage interests granted and sold by the Housing Bank are exempted from the payment of income taxes to the Com- monwealth Government. 1970 Op. Sec. Jus. No. 17. 2. -Federal taxes. Even though no legal provision exists intending that the interest received on mortgages granted and sold by the Housing Bank are exempt- ed from the payment of taxes to the Federal Government, it seems that the interest referred to is subject to general rule in the sense that the interest earned is part of the gross profit.1970 Op. Sec. Jus. No. 17. $§ 919, 920. Repealed. Act July 23, 1974. No. 218, Part 2, p. 129, 117, eff. July 28,1974. HimitY Repeal. These sections, sections 19 and 20 of Act June 30, 1961. No. 146. P. 320, regulated receivership cases and the steps to be taken by the receiver, and proceedings against President and Directors for violatipns of this act, § 921. Obligations not to be impaired No amendment to sections 901-922 of this title or to any other law of Puerto Rico shall impair any obligation whatsoever of the Agency. --June 30, 1961, No. 146, p. $20, § 21; July 23, 1974, No. 218, Part 2, p. 129, § 15, eff. July 23,1974. 265 Submitted Into the pubiic record in tonne ion with item IL ... & on • ji Waiter s~o�irnan City Clem; 96- 191.1 14 T.7 § 921 BANKING Ch. 69 HISTORY Amendments-1974. The 1974 Act changed "Bank" to "Agency". Statement of motives, Act July 23. 1974, No. 218, contained a statement of motives. See Laws of Puerto Rico 1974, Part 2, p. 129. § 922. Definitions The following terms or phrases as used in sections 901-922 shall have the following meaning, unless otherwise clearly implied from the context: (a) As used in sections 901-922 of this title the term "persons and families of low or moderate income" means persons and fami- lies determined by the Agency to require such assistance as is made available by sections 901-922 of this title. To determine if the persons or families need assistance provided herein there shall be taken into consideration, without limitation, such factors as (1) the amount of the total income of such persons and families avail- able for housing needs, (2) the size of the family, (3) the cost and condition of housing facilities available, and (4) the ability of such persons and families to compete successfully in the normal housing market and to pay the amounts at which private enterprise is pro- viding decent, safe and sanitary housing. The Secretary of the Housing Department shall from time to time determine the maximum income limits applicable to such persons and families and the maximum cost or value of such housing facilities. (b) "Savings and loan contract" is a contract executed between the Agency and a savings depositor, under terms and conditions as prescribed by the Agency, whereby the savings depositor agrees to deposit in the Agency a given sum of money within a given period of time by periodic deposits at the completion of which the savings depositor shall be entitled to obtain from the Agency a loan for a given sum for the construction, renewal, enlargement, improve- ment, or repair of housing for persons and families of low or mod- erate income. (c) "Mutual deposits" are the aggregate deposits made by the savings depositors under the savings and loan contracts. (d) "Secretary" means the Secretary of Housing. —June 30, 1961, No. 146, p. 320, § 22; July 28, 1974, No. 218, Part 2, p. 129, § 16, eff. July 23, 1974. Submitted into the public 266 record in connection with item.._ on � � Walter ; o::.rrtan cRy C!oi 96- 191.1 Ch. 69 HOUSING BANK T.7 § 923 HISTORY Amendments-1974. Subsection (ay The 1974 Act changed the definition of "low-cost dwelling" to a definition for "persona and families of low or moderate income". Subsection (b): The 1974 Act changed reference to "Bank" to "Agency". Subsection (d): The 1974 Act replaced definition for "cash surrender value" with definition for "Secretary". Statement of motives. Act July 23, 1974, No. 218, contained a statement of motives. See IAws of Puerto Rico 1974, Part 2, p.129, § 923. Payments to the Secretary of the Treasury (a) The Secretary of the Treasury is hereby authorized to receive, as deposit, through the internal -revenue collectors' offices, money derived from the payments of monthly installments of loans granted by the Puerto Rico Housing Bank and Finance Agency to its borrowers. The Secretary of the Treasury shall remit within the first fifteen (15) days of each month to the central office of the above -mentioned Agency the amount of. the deposits collected dur- ing the preceding month. (b) The Secretary of the Treasury shall adopt the rules and reg- ulations as may be necessary for the implementation of this section. (c) When the volume of the transactions derived therefrom may require the use of additional personnel in the internal -revenue col-. lectors' offices, the President of the Agency shall determine, in mutual agreement with the Secretary of the Treasury, the funds that may be necessary to be transferred annually to defray the expenses caused by this operation. --June 21, 1971, No. 44, p. 131., H 1-3; July 23, 1974, No. 216, Part 2, P. 127, §§ 1, 2, eff. July 23, j 1974. HISTORY Codification. i Subsections (a)-(e) of this awtion correspond, respectively, to if 1-3 of Act June 21, 1971, No. 44, thus this section does not form a part of Ac: June 80, 1961, No. 146, which constitutes this chapter, J§ 901-922 of this title. Amendments-1974. Subsection (0 The 1974 Act changed "Puerto Rico Housing Bank" to "Puerto Rico Housing Bank and Finance Agency' in the first sentence; changed 'above. mentioned Housing Bank" to "above -mentioned Agency" in second sentence. 1 Subsection (0 The 1974 Act changed "President of the Housing Bank" to'Presi- dent of the Agency. Submitted Into the public 267 record in connection with item -3-4 -_ on -i 4.!jia Wafter Foeman 96- 191.1 T.7 § 923 BANHINc Ch. 69 Effectivenexs. Section 4 of Act June 21, 197I. No, 44, provided: "This act [this section) shall take effect immediately nrter its approval, for the sole purposes that the Secretary of the Treasury shall ndui,t the necessary regulations for its implementation, but the remainder of its provisions shall take effect ninety (90) days after its approval." 269 Submitted into the publics record in connection wit + item „ 3-4 on I•AL Walter 1=oema.n City Cleric 96- 191.1 Chapter ttl. Inured Mortyagi-s Reserve Fond SECTION ANAIA SIs 261. Creation 262. Mortgage Security Insurance Regulation 263. Payment in debenture bonds 264. Issuance of debenture bonds 265. Award in payment 266, 267. l Repealed J 268. Sale of foreclosed property 269. (Repealed) 270. Guarantee by Commonwealth —-- 271. —Provisional Loan insurance Program 271a. —Special reserve fund to guarantee program § 261. Creation For the purpose of insuring a sufficient number of safe and hygienic houses in Puerto Rico, promoting the housing and con- struction industries and the resultant additional employment opportunities for the citizens of the Commonwealth of Puerto Rico; and to facilitate the housing programs financed or sponsQrgd by any agency, public corporation, municipality or instrumentality of the Commonwealth of Puerto Rico, the Puerto Rico Housing Bank and Finance Agency, which hereafter shall be known in this chap- ter as the "Agency", is hereby authorized to insure, by itself or jointly with others, and to reinsure the payments of any mortgage loan of provisional financing granted to construct, rehabilitate, acquire, lease. or refinance houses under the terms and conditions the Agency may determine. For the purpose of meeting the obligations assumed by the Agency in the insurance of mortgages, as provided by this chapter, the Agency shall create an Insured Mortgages Reserve Fund, which shall be maintained with the premiums and any other income deriving from the insurance of mortgages, and from which shall be paid all obligations incurred by the insurance, operation expenses and any other expenses incident to the mortgage insur- ance, as provided in the Mortgage Security Insurance Regulation below established by this chapter. —June 25. M65, No. 87, p. 216, § 1; Juiy 2.1. 1974, No, 215, Part 2, p. 123, § 1, eff. July 2:3, 1974. 1011 Submitted Into the public record in Connection with item.W At after ,:O'OE- 1an Ciiy Cleric 95- 191.1 Ch. 19 INSURED MORTGAGES RESERVE FUND T.7 § 262 HISTORY Amendment4-1974. The 1117.1 Art added it new first paragraph: changed "Puerto Rico housing Rank" to "the Agency" III Iwo phu-es, cluulged "suhsectimns 1.0 and Ikl of section NO of this title" to "this chapter", anti changed "fed by" lu "maintained with" in the present second paragraph. Mortgage Security Insurance Regulation; effectiveness. Section 3 of Act ,duly 2:4. 197.1. No. 215, provided: "The Mortgage Security Insur- ance Regulation now III force, shall continue In force in all that Is not in conflict with this act Ithis rhnpterl until such regulation is amended or a new one is adopted." § 262. Mortgage Security Insurance Regulation The Puerto Rico Housing Secretary, who hereafter shall be known as the Secretary, shall adopt a Mortgage Security Insur- ance Regulation providing for the establishment and maintenance of those actuarial reserves deemed by him necessary and adequate to insure the solvency of the Insured Mortgages Reserve Fund created hereunder. The Regulation on the Mortgage Security Insur- ance shall be exempt from the provisions of sections 1041-1059 of Title a but the Agency shall give it the proper diffusion anti pub- licity for public knowledge. This regulation shall also provide the rules and conditions for insurance against any losses that thruu}th__ mortgage -secured obligatiuns, either by reason of loans, credit advances, or the purchase of obligations evidenced by promissoy notes, may he sustained by the Agency or other financial entities such as banks, trust companies, insurance companies, retirement systems, personal loan companies, mortgage investment compa- nies, housing construction and loan associations, installment -loan companies, housing cooperatives, or any other institutions which the Secretary may determine that qualify through their experi- ence, resources and facilities as eligible for such insurance. The Secretary may, from time to time, establish the maximum amount on any loan to he insured under this chapter. —June 25, 1965, No. 87, p. 210. § 2: ,duly 2:1, 1974. No. 215, Part 2, p. 12:3, § 1, eff, July 2:1, 197.1. 111srottY Amendment.-1974. The 1974 Act changed "The limard of Directors of the Puerto Rico Housing Bank" to "The Puerto Rlro Ilmusmg Secretary, who hereafter shall he known as the Secre- tary"; changed "Puerto Itieo (lousing Bank" to "the Agency" in the second sentence: changed "the Bank" to "the Agency" in the third sentence: eliminated the former last two sentences relative to the maximum insurable amount, and added the pres- ent last sentence. 105 Submitted into the public record in connection with item , — on Waiter i=ooman City Clerk 9r_ 191,1 T.7 § 262 BANKING Ch, 19 Mortgage Security Insurance Regulation; effectiveness. See note under section Y61 of this title. Cross references. Mortgage loan in..surance, see sot -lions Y:ttll-2;in7 of 'I'ntlo'36. § 263. Payment in debenture bonds In those cases in which the Agency must discharge its liability assumed as Mortgage Insurer, it shall make the corresponding payment in debenture bonds, or in cash, from the moneys dviiiis- ited in the Insured Mortgages Reserve Fund or in a merger of both to be determined by tho Secretary. —.tune 25, 1965. No. 87, 1►. 216. § 3; July 23, 1974. No. 215, Part 2, p. 12:3, § I, eff. July 23. 1974. IISTOHY Amendments-1974. The 1974 Act changed "the Hunk" to "the Agency,. and elinimaled the phraso';nn below provided" and added the alternative forms of making the corresponding payment. § 264. Issuance of debenture bonds All debenture bonds issued by the Agency in accordance with the provisions of this chapter shall be secured by the moneys de- posited in the account of the Insured Mortgages Reservtx—Fund. Said debenture bonds shall hear such date, fall due on such date or dates, be redeemable before maturity with or without pren►ioni, draw interest at such rate or rates, be payable tin such date or dates, and be executed• as the Secretary may determine. —June 25, 1965, No. 87. p. 216. § 4; July 23, 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. IIISIOK) Amendments-1974. The 1474 Act amended thts section generally. § 265. Award in payment In case of default by the mortgagor, the mortgagee shall promptly notify the Agency in writing. l!pon receiving such notice the Agency shall determine the course of action to be followed by the mortgagee. When deemed practicable, and for a provisional period after the default or menace of default by the mortgagor, the Agency may make the corresponding payments on the mortgage to the mortgagee, which payments shall he repaid under the terms UM Submitted into the public record in connection with item _ on 'l d Walter Rieman City Clerl; 9U— 191.1 V-- Ch. 19 INSVRED MORTGAGES RESERVE FUND T.7 § 269 that the Agency may determine. When deemed advisable, the Agency may also revise the financing conditions. Once the mort- jragee complies with all the retluirements imposed by the Agency in accordance with the Mortgage Security Insurance Regulation, he shall he enlitled to receive the benefits of the insurance hereby authorized. -June 25, 1965, No. 87, p. 216, § 5; July 23, 1974, No. 215, I'art 2, It. 123, § 1, eff. July 23, 1974. IIISTtIHY Ameminive s- 197-1. The 1971 Act anm-ndc11 this wcio n generally. Mor(gKge Security Insurance Regulation; effectiveness. Sue nuts under sretion 261 of this title. §§ 266, 267. Repealed. Act July 23, 1974, No. 215, Part 2, p. 123, § 2, eff. July 23, 1974. II ISTtIHY Repeal. Thr>r .rrtwns which derivod from sections 6 and 7 of Act June 25. 1965, No. 87, p 'Ili, cuvrred the rwluinvnonts and redemption of debenture bonds. § 268. Sale of foreclosed property In case the proceeds of the sale of a foreclosed property exceed the liability covered by the Agency through payment of the insur- ance, said excess shall be covered by the Agency into the account of the Insured Mortgages Reserve Fund. -June 25, 1965, No. 87, p. 216, § 8; July 2;1, 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. 111STQHY Amendments-1974. The 1974 Art changed "the Housing Dank" to "the Agency" and "refunded by the Ilou..ing Bank to the mortgagee affected by the foreclosure" to "covered by the Agency into the account of the Insured Mortgages Reserve Fund". § 269. Repealed. Act July 23, 1974, No. 215, Part 2, p. 123, § L, eff. July 2:1, 1974. HISTORY Repeal. This welion, which was derived from section 9 of Act June 25, 1965, No. 87. p, 216, regulated mortgages by usufructuaries. Submitted into the public record in connection with item__._ on 4'10 s56 Walter Fo I nan Ci,y Clef:!; ge- 191.1 ky_ T.7 § 270 BAi,AING Ch. % § 270. Guarantee by Commonwealth The Commonwealth of Puerto Rico guarantees the payment t the principal of and interest on debenture bonds issued by tt Agency for the purposes authorized by this chapter in an aggr gate principal amount which shall not exceed $75,01111,000. T1 debenture torLds covered by thisguaranty shall be those specific by the AxencY, and a statement of such guaranty shall be set furl on the face of such debenture bonds. If at any time the funds d posited in the account of the Insured' Mortgages Reserve Fur plet g.ed fiir the j►a,ment f 1►rint i1►al of ttncl intt'retit nn sot h t ►t // ture bonds are insufficient for the payment of such principal ar j interest when they fali due, the Azencv shall draw from any of i unencumbered funds the necessary sums for the payment of suc principal and interest overdue, and shall direct that said sums I covered into the Insured Mortgages Reserve Fund; and should sa sums be insufficient for the payment of such principal and imere when they fall due, the Secretary of the Treasury shall draw fro the Redemption Fund, established by sections 401-403 of Title I or from any available funds in the Treasury of Puerto Rico, sut sums as may be necessary to cover the deficiency in the amou required for the payment of such principal and interest, and -sh; direct that the sums so drawn be applied to such payments. T1 good faith and credit of the Commonwealth of Puerto Rick, a hereby pledged for such payments. —June 25, 19tiG, No. 157, 1r. Ll § 111; May :3. 197:3, No, 16, 1►. 54; Jule 2:3, 1974, No. 215. fart t, 12:3, § 1; Dee. 5, 1975, No. 11, p. 961, § 1, e f f. Dec. 5, 1975, Amendments-1975. The 1975 Act increased the guaranty for payment of principal and trttor•.I fr fifty million to seventy-five million dollars. —1974. The 1974 Act amended this section generally, and elim►natr,t the �,evt,nl 114 graph covering the assumption of liability by the Puerto Rico Housing Bank. —1973. The 1973 Act increased the guaranty for payment nn debenture hand: from million to $50 million. and added second paragraph. Statement of motives. Act five. ti, 1975, No. 11. contained a statenivnt of motives. Sce I,aws of I't Rico 1975, p. 96 1. 108 Submitted into the public record in connection with item _ or, _tk•� Walter Fo man city cle-ri, C:h. 19 INSVRED MORTGAGES RESF;RVE FUND T.7 § 271 § 271.—1'rovisional Loan Insurance Program In additi(in to and as a guarantee separate from that established in section 271) of this title, the Commonwealth of Puerto Rico shall warrant the payment of the unpaid balance of the principal of and interest on mortgage loans or provisional financing secured by the Agency under the provisions of sections 261-265, 268, and 270- 271a of this title, or a hart of such balance, as well as debenture hunds that may he issued by the Agency for such purposes, up to an aggreR'ate amount not exceeding $75,000,001). The mortgage loans or provisional financing and the bonds with which payment shall be made of the guaranty authorized by this section shall bear a statement of such guarantee including the amount authorized in each case, on the face of such loans, financing or debenture bonds. If at any time the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal of and interest on such debenture bonds are insufficient for the payment of such principal and interest when they fall due, the Agency shall draw on any of its unencumbered funds the necessary sums for the payment of such overdue principal and interest and shall direct that said sums be covered into the Special Reserve Fund, and if said sums are insufficient for the payment of such principal and - interest when they fall due, the Secretary of the Treasury shall draw on the Redemption Fund, established by sections 402-404 of Title 13, or any available funds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the amounts so drawn be applied to such payments. The good faith and the credit of the Commonwealth of Puerto Rico are hereby pledged to such payments. Provided, that provisional financing secured under the provisions of this section shall be guaranteed by a special reserve fund to be established by the Agency, where the premiums to be charged for making mort- gage loans or granting provisional financing shall be covered: And provided, further, That the Agency shall establish through regula- tion the standards that will govern this program, which regulation shall have the force of law once approved by the Secretary of Housing and the (;overnor.—June 25, 1965, No. h7, p. 216, § 11. added Dec. 5. 1975, No. 11. p. 961, § 2,, May :30, 1976, No. 72. p. 219, § 1, eff. May 3(), 1976. Submitted into the public record in connection with item 1_ on 'e -Rl Walter Foeman City Cleilk 9�'- 191.1 T.7 § 271 RANKING Ch. 19 Amendments-1976. The 1976 Act eliminated reference to bonds specified by the hoard of 1hreernrs of the Government Development Bank in second sentence of first paragraph and added second paragraph. Statement of motives. See Laws of Puerto Rico: Dec. L, 1975, No. I t , p. !M 1. May :tu, 1976, Nis. 71:. is. 219 § 271a. —Special reserve fund to guarantee program The Agency shall establish a special reserve fund to guttwuttee the provisional loan insurance 1lrogrant authorized under section 271 of this title, and the Commonwealth hereby pledges to appro- priate such funds as may be necessary to cover any net lossjes), if any, as a result of operations and obligations incurred under the above -mentioned insurance program; Provided, That the Agency shall be bound to render a report to the Governor of Puerto Rico through the Bureau of the Budget, on the amount and causes of any losses in the Special Reserve Fund, and the Bureau of the Budget, in turn, shall include the necessary legislative appropria- tions to cover such net losses in the proposed budget for the second fiscal year following the year in which such loss is incurred. —,tune 25, 1965, No. 87, p. 216, § 11A, added May 311, 1976, No. 72, 1t. 219, § 2, eff. May ;10, 1976. - Statement of motive,, Act May ao. 1976. No. 72. contained a statement of motives tine Laws of 1'ui•rtn Rico 1976. It.21!1. Submitted into the public record in connection on���(a item Walter f=oomar) City cjerl� Chapter 19. Insured Mortgages Reserve Fund SECTION ANALYSIS 261. Creation 262. Mortgage Security Insurance Regulation 263. Payment in debenture bonds 264. Issuance of debenture bonds 265. Award in payment 266, 267. [Repealed] 268. Sale of foreclosed property 269. [Repealed] uarantee by Commonwealth 271. —Provisional Loan Insurance Program 7.L 271a. —Special reserve fund to guarantee program § 261. Creation For the purpose of insuring a sufficient number of safe and hygienic houses in Puerto Rico, promoting the housing and con=` struction industries and, the resultant additional employment opportunities for the citizens of the Commonwealth of Puerto Rico; and to facilitate the housing programs .financed or sponsored by any agency, public corporation. ;municipality or instrumentality of the Commonwealth of Puerto Rico, the Puerto Rico Housing bark and Finance Agency, which he: eafter shall be known in this chap- ter as the "Agency", is hereby authorized to insure, by itself o: jointly with others, and to reinsure, the payments of any mortgage loan of provisional financing granted to construct, rehabilitate, jacquire, lease, or refinance houses under the terms and conditions I the Agency may determine, For the purpose of meeting the obligations assumed by the Agency in the insurance of mortgages, as provided by this chapter, the Agency shall create an Insured Mortgages Reserve Fund, which shall be maintained with the premiums and any other income deriving from the insurance of mortgages, and from which. shall be paid all obligations incurred by the insurance, operation expenses and any other expenses incident to the mortgage insur- ance, as provided in the Mortgage Security Insurance Regulation i below established by this chapter. —June ��5, 1965, No. 87, p. 216, 3 1; July 23, 1974, No. 215, Part 2, p. 123, J 1, eff. July 23, 1974. 104 i Submitted into the public record in connection with item_ on_� Walter Foernan City Cleric Ch. 19 INSURED MORTGAGES RESERVE FUND T.7 § 271 f § 271. —Provisional Loan Insurance Program In addition to and as a guarantee separate from that established in section 270 of this title, the Commonwealth of Puerto Rico shall warrant the payment of the unpaid balance of the principal of and interest on mortgage loans or provisional financing secured by the Agency under the provisions of sections 261-265, 268, and 270- 271a of this title, or a part of such balance, as well as debenture bonds that may be issued by the Agency for such purposes, up to an aggregate amount not exceeding $75,000,000. The mortgage loans or provisional financing and the bonds with which payment shall be made of the guaranty authorized by this section shall bear a statement of such guarantee including the amount authorized in each case, on the face of such loans, financing or debenture-6Pfds. If at any time the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal of and interest on such debenture bonds are insufficient for the payment of such principal and interest when they fall due, the Agency shall draw on any of its unencumbered funds the necessary sums for the payment of such overdue principal and interest and shall direct -- that said sums be covered into the Special Reserve Fund, and if said sums are insufficient for the payment of such principal and interest when they fall due, the Secretary of Che Treasury shall draw on the Redemption Fund, established by sections 402-404 of Title 13, or any available funds in the Treasury of Puerto Rico, such sums as ;nay be necessary to corer the deficiency in the amount required for the payment of such principal and interest, and shall direct that the amounts so drawn be applied to such payments. The good faith and the credit of the Commonwealth of Puerto Rico are hereby pledged to such payments. Provided, that provisional financing secured under the provisions of this section shall be guaranteed by a special reserve fund to be established by the Agency, where the premiums to be charged for snaking mort- gage loans or granting provisional financing shall be covered; And provided, further, That the Agency shall establish through regula- tion the standards that will govern this program, which regulation shall have the force of law once approved by the Secretary of Housing and the Governor. —June 25, 1965, No. 87, p. 216, § 11, added Dec. 5, 1975, No. 11, p. 961, § 2; May 30, 1976, No. 72, p. 219, § 1, eff. May 20, 1976. 109 Submitted into the public record in conne zion vyith Item 3-4—on If i C- 1 Wafter f--c ..inan City Cleri, 96— 191.1 k_.- T.7 § 271 BANKING Ch. 19 HISTORY Amendments-1976. The 1976 Act eliminated reference to bonds specified by the Board of Directors of the Government Development hank in second sentence of first paragraph and added second paragraph. Statement of motives. See Laws of Puerto Rico; Dec. 5, 1975, No. 11. p. 961. May 30, 1976, No. 72, p. 219. § 271a. —Special reserve fund to guarantee program The Agency shall establish a special reserve fund to guarantee the provisional loan insurance program authorized under section 271 of this title, and the Commonwealth hereby pledges to appro- priate such funds as may be necessary to cover any net loss[es], if any, as a result of operations and obligations incurred under the above -mentioned insurance program; Provided, That the Agency shall be bound to render a report to the Governor of Puerto Rico through the Bureau of the Budget, on the amount and causes of any Iosses in the Special Reserve Fund, and the Bureau of the Budget, in turn, shall include the necessary legislative approprty tions to cover such net losses in the proposed budget for the second fiscal year following the year in which such loss is incurred. —June 25, 1965, No. 87, p. 216, § 11A, added May 30, 1976, No. 72, p. 219, § 2. eff. May 30, 1976. HISTORY Statement of motives. Act May 30, 1976. No. 72, contained a statement of motives. See Laws of Puerto Rico 1976. p. 219. Submitted into the public record in connection with item 3_ on-'a'..�y ` CI Walter Forman City Clerk 110 96- 191.1 k, 0 Cit. 19 INSURED MOUTCACF.8 ItE,8RltVF. FUND T,7 § 269 that the Agency may determine. When deemed advisable, the Agency may also revise the financing conditions. Once the mort- gagee complies with all the requirements imposed by the Agency in accordance with the Mortgage Security Insurance Regulation, he shall be entitled to receive the benefits of the insurance hereby authorized. -June 25, 1965, No. 87, p. 216, § 5; July 23, 1974, No. i 215, Part 2, p. 123, § 1, eff. July 23, 1974. HISTORY i Amendments-1974. The 1974 Act amended this section generally. Mortgage Security Insurance Regulation; effectiveness. See note under section 261 of this title. §§ 266, 267. Repealed. Act July 23, 1974, No. 215, Part 2, p. 123, § 2, eff. July 23, 1974. HISTORY Repeal. These sections which derived from sections 6 and 7 of Act June 25, 1965, No. 87, p. 216. covered the requirements and redemption of debenture bonds. § 268. Sale of foreclosed property In case the proceeds of the sale of a foreclosed property exceed the liability covered by the Agency through payment of the insur- ance, said excess shall be covered by the Agency into the account of the Insured Mortgages Reserve Fund. -June 25, 1965, No. 87, p, 216, § 8; July 23, 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. HISTORY Amendments-1974. 1 The 1974 Act changed "the Housing Bank" to "the Agency" and "refunded by the Housing Bank to the mortgagee affected by the foreclosure" to "covered by the Agency into the account of the Insured Mortgages Reserve Fund". § 269. Repealed. Act July 28, 1974, No. 215, fart 2, p. 123, § 2, eff. July 23, 1974. HISTORY r Repeal. i This section, which was derived from section 9 of Act June 25. 1965, No. 87, p. 216, regulated mortgages by usufructuaries. 107 • Submitted into the public record in connection with item -_ on .,Vv-t -0� i1;' 95- 191,1 T.7 § 270 BANKING Ch. 19 § 270. Guarantee by Commonwealth The Commonwealth of Puerto Rico guarantees the payment of the principal of and interest on debenture bonds issued by the Agency for the purposes authorized by this chapter in an aggre- gate principal amount which shall not exceed $75,000,000. The debenture bonds covered by his guaranty shall be those specified by the Agency and a statement of such guaranty shall be set forth on the face of such debenture bonds. If at any time the funds de- posited in the account of the Insured Mortgages Reserve _Fund_ pledged for the payment of principal of and interest on such deben- ture bonds are insufficient for the payment of such principal and interest when they fall due, the Agency shall draw from any of its unencumbered funds the necessary sums for the payment of such principal and interest overdue, and shall direct that said sums be covered into the Insured Mortgages Reserve Fund; and should said sums be insufficient for the payment of such principal and interest when they fall due, the Secretary of the Treasury shall draw from _ the Redemption Fund, established by sections 401-403 of Title 13, or from any available funds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest, and shall direct that the sums so drawn be applied to such payments. The good faith and credit of the Commonwealth of Puerto Rico are hereby pledged for such pay meats. —June 25, 1965, No. 87, p. 216, § 10: May 3, 1973, No. 16, P. 54; July 23, 1974, No. 215, Part 2, p. 123, § 1: Dec. 5, 1975, No. 11, p. 961, § 1, eff. Dec. 5, 1975. HISTORY Amendments-1975. The 1975 Act increased the guaranty for payment of principal and interest from fifty million to seventy-five million dollars. --1974. The 1974 Act amended this section generally, and eliminated the second para- graph covering the assumption of liability by the Puerto Rico Housing Bank. —1973. The 1973 Act increased the guaranty for payment on debenture bonds from $10 million to $60 million, and added second paragraph. Statement of motives. Act Dec. 6, 1975, No. Rico 1975, p. 961. 11, contained a statement of motives. See Laws of Puerto 1.08 Submitted into the public record in connection with item �_ on_� -% Walter 1 t r.' nan 96)- 191.1 Ch. 19 INSURED MORTGAGES RESERVE FUND T.7 § 262 HISTORY Amendments-1974. The 1974 Act added a new first paragraph; changed "Puerto Rico Housing Bank" to "the Agency" in two places; changed "subsections (j) and (k) of section 910 of this title" to "this chapter", and changed "fed by" to "maintained with" in the present second paragraph. Mortgage Security Insurance Regulation; effectiveness. Section 3 of Act July 23, 1974, No. 215. provided: "The Mortgage Security Insur. ance Regulation now in force, shall continue in force in all that is not in conflict with this act [this chapter] until such regulation is amended or a new one is adopted." § 262. Mortgage Security Insurance Regulation The Puerto Rico Housing Secretary, who hereafter shall be known as the Secretary, shall adopt a Mortgage Security Insur- ance Regulation providing for the establishment and maintenance of those actuarial reserves deemed by him necessary and adequate to insure the solvency of the Insured Mortgages Reserve Fund created hereunder. The Regulation on the Mortgage Security Insur- ance shall be exempt from the provisions of sections 1041-1059 of Title 3 but the Agency shall give it the proper diffusion and pub-= licity for public knowledge. This regulation shall also provide the rules and conditions for insurance against any losses that through mortgage -secured obligations, either by reason of loans, credit advances, or the purchase of obligations evidenced by promissory notes, may be sustained by the Agency or other financial entities such as banks, trust companies, insurance companies, retirement systems, personal loan companies, mortgage investment compa- nies, housing construction and loan associations, installment -loan companies, housing cooperatives, or any other institutions which 'the Secretary may determine that qualify through their experi- ence, resources and facilities as eligible for such insurance. The Secretary may, from time to,time, establish the maximum amount on any loan to be insured under this chapter. —June 25, 1965, No. 87, p. 216, § 2; July 23, 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "The Board of Directors of the Puerto Rico Housing Bank" r, to "The Puerto Rico Housing Secretary, who hereafter shall be known as the Secre- tary"; changed "Puerto Rico Housing Bank" to "the Agency" in the second sentence; changed "the Bank" to "the Agency" in the third sentence; eliminated the former last two sentences relative to the maximum insurable arnoum, and added the pres- ent last sentence. Submitted into the public record in connection with item C .._ on •- ` Walter Foernan City Clerl< 96- 191.1 k_. T.7 § 262 IIANKINti Ch. 19 MortKaKe Seeurity 1 nsurunce Regulation; errectivenesm. See note under section 261 or ON title. Cross references. Mortgage loan insurance, see sections 2301-2307 of Title 26. § 263. Payment in debenture bonds In those cases in which the Agency must discharge its liability assumed as Mortgage Insurer, it shall make the corresponding payment in debenture bonds, or in cash, from the moneys depos- ited in the Insured Mortgages Reserve Fund or in a merger of both to be determined by the Secretary. —June 25, 1965, No. 87, p. 216, § 3; July 23, 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act changed "the Bank" to "the Agency" and eliminated the phrase "as below provicied" and added the alternative forms of making the corresponding payment. § 264. Issuance of debenture bonds 1 All debenture bonds issued by the Agency in accordance with the provisions of this chapter shall be secured by the moneys de- posited in the account of the Insured Mortgages Reserve Fund. Said debenture bonds shall bear such date, fall due on such date or dates, be redeemable before maturity with or without premium, draw interest at such rate or rates, be payable on such date or dates, and be executed. as the Secretary may determine. —June 25, 1965. No. 87, p. 216, § 4; July 23,. 1974, No. 215, Part 2, p. 123, § 1, eff. July 23, 1974. HISTORY Amendments-1974. The 1974 Act amended this section generally. § 265. Award in payment In case of default by the mortgagor, the mortgagee shall promptly notify the Agency in writing. Upon receiving such notice the Agency shall determine the course of action to be followed by the mortgagee. When deemed practicable, and for a provisional period after the default or menace of default by the mortgagor, the Agency may make the corresponding payments on the mortgage to the -mortgagee, which payments shall be repaid under the terms 106 Submitted into the public record in connection ivith item Av-4 on .&_!!� - T 6 wa- te;r 1--C' 3i�,-) 7n C,;lv Ili, , 96'- 191.1 k- Act Na 3 7th BPHCUL 8B88WN—IO& A38MBLY Sept 30 juridical person, the court may impose a penalty, of suspension or cancellhtion as provided in Articles 62 and 53 of Act No. 115 of July 22, 1974."s Section 3.—Articles 117-A and 117-B are hereby renumbered as Articles 117-B and 117-C, of the Penal Code of Puerto Rico of 1974. as amended.* Section 4.—This act shall take effect immediately after its i approval. Approved September 30, 1986. i Banking —housing Bank and Financing Agency; Coaaeow wealth's Guarantee; Amendment (S.B. 957) 1 [No. 4) 1 [Approved Septintber 30, 1986] AN ACT To amend Section 11 and add Sections 11-B, 11-C and 11-D to Act ' No. 87 of June 25, 1966, to increase the CommonwealtYs j maximum guarantee to secure the Provisional Construction IMM ' Insurance Program; to authorize the issue of bonds instead of the debenture bonds; to provide the mechanisms for the payaiest ri such bonds and to revoke the authority to issue debenture bwb once the substitute bonds are issued; to provide the mechass for the pwment of the bonds ieenned under said guaraatea, Fa establish standards for the efficient management of the loans j paid pursuant to said guarantee; to require the Housing Bali and Financing Agency to submit quarterly reports on said low and to establish a moratorium in the construction loan ina wsaw ' program U LP.k-k 0 a?43. M. 33 LP.B.A. If 40M 4ML 798 Submitted into the public � record in connection grit item � on l'!4--� Walter Foenian City Cleric 96- 191.1 k,- Sept as COMMONWEALTN's GUARANTEE Act No. 4 STATEWENT OF MOTIVES Act No. 87 of June 25, 1965, was amended by Act No. 72 of May 30, 1976, with the purpose of authorizing the establishment of a program to secure the financing of provisional construction loans through the Housing Bank and Financing Agency. The Common- wealth committed itself to warrant the payment of the unpaid balance of the principal and interest on mortgage loans or provisional financing secured by the Agency under the provisions of said act; as well as the debenture bonds issued by the Agency is make such payments, up to an amount that should not exceed s. $76,000,000. The act, whose purpose is to attain the goal that each Puerto Rico may own a safe and adequate dwelling, is based on the premise that the securing of the loans could be achieved without major fiscal risks, since reasonable premiums would be established which -would-be Wve2 into a special reserve fund to back said program's claims and' liabilities. Although it -was expected that said fund, barring unforeseen _ circumstances, would be sufficient to honor the program's commitments and liabilities, the Legislature of Puerto Rico committed itself to appropriate the needed resource., to cover any net losses that could occur in said fund, to give the program a high degree of reliability. However, a study made by the Committee on Urban Development and Housing of the Serrate of Puerto Rico revealed, among other things, that during the program's first eight (8) years of operation i tha Agency disregarded the Legislative mandate to operate without I uajor fiscal risks, charge reasonable premiums, establish adequate reserves, suffer looses only in case of abnormal circumstances, notify the Governor and the Office of the Budget and Managenwnt is the event such losses occurred and request the budget appropri- ations needed to cover them. Ukewitm, the study determined that the Agency sh%yed frorn the insurance principles and practices to educe to the utmost the exposure to Toes. As a result of the above, the Agency has in its port&Uo at present around twenty (20) loans with serious problems which will produce tosses estimated at nieutr million (90,000,000) dollars Part of these low were granted by private institutions under the guarantee program established by Act No. 72 of May 30, 1976. Others were granted dkectly by the Agency using resources obtained through 799 Submitted into the public } record in connection vviith6 item _ on Walter 6"=oeinan City Cleric gf,- 191 •t k�_ Act No. A 7th SPHOAL RZOMN—lfe ASSMAHLY Sept B0 notes guaranteed by said act In order to honor the Agency's goaranthe to the folders of said notes or the institutions thM originated the loans, the Agency shall geed ninety minion dollin ($90,000,000) which it does not have available. This is a situation that should be urgently seen to, since tkra are commitments involved which, if not attended to in time, woad adversely affect the image and credit of the Commonwealth. Therefore, by virtue of this tort, it is provided, first, that the authorization granted to the Housing Bank and Financing Agenq by Act No. 72 of May, MO, to isms bonds without collateral guaranty :scored bpY the good faith and credit of the Common- wealth is increased from $75,000,000 to $90,000,000. This increase in the authorization for the issue of bonds has the purpose of providing the funds for the Agency to pay the unpaid balance of the principal and interest of the construction loans secured by the .AVW nnder mid act, notes suaranteed by said act In the second place, the necessary mechan.i8ms for the Ageoq► to avail itself of the needed resources for the payment of intrat and the amorthation of the principal of the bonds to be issued an hereby provide& In the third place, the standarda are set for the Agency to exercise the greatest degree of diligence in the administration of the problem loans in order to reduce by the largest amount pose1le the resulting final net kases. In the fourth plane, the L*gW[ nre deems it is necessary for tin financial problem of Act No. 72 to be resolved integrally and at long range in order to meet the incurred obligations, to reduce the amount of the appropriations required annually, and that the Commonwealth's credit margin is not adversely affected. To such ends, an option is provided for the refinancing of the outstandt debentures at a term not to wmeed 20 years, for interest to be capitalised the first year to avoid affecting the General Fund of the Coneanonw►ealtb of Puerto Rim adversely during that period, for funds to be provided to cover the estimated net losses of the Program and to cover the financing hosts. Therefore, in order to carry out the orderly liquidation of the Program, a payment plan for the Iaws thereof and the needed appropriations to cower the servicing of the debt of the fenanci to be obtained for such purpose are hereby provided. Boo s r Submitted into the public record in connection with item _I___ on .l-1q L Walter f tier; try n 9"),- 191.E k, Sept, M T88 GUARANTEE Act No. 4 By these mane It is am red that the necessary !ands to meet the fumaal ra wibilit, of the Progsun shall be provided, and a rouion" berm @W be s multansously established to perform the pertinent legal actions that are needed to acquire title to the v*cb,, to rehabilitate dban, aid to addeve duir final Imaidation and sale. The Agency is also directed hereby to prevent periodic reports m that the Legislature; the Governor and the Office of the Budget : and may know and be informed of the work carried at by the Agency to minimise losses, sad the amount of the total lam finally Wc=TW by the Commonweal& A moratorium is Ow eshdAished in the provisional construction loan insurance program, =dI the LegMature can evaluate it and adopt the pertinent asasures so that the social goals of the act can be met. Do it ego W by the lavielatura of Puorto Ri.m- IMM t.-8iddan IT of Act Mc. K of June 25, 1955. as annenil ed,0 is hereby ansemded to read as follows: .'Sectioa In addition to, and as a guarantee separate from chat established in Section 10 of this aef," the Commonwealth of Puerto Bice shall warrant the payment of the unpaid balance of the principal and la'Arest on the mortgage loses or Provisimu dl financing secured by the Agar under. the proms of this act. or a pert of such baksce, as well as debenture bands that may be issued by the Arm for such purposes, up to an ea:fount which shall vet exceed $90AM.000. The mortgage loans or provisional financing and the bonds with which payment ehaU be made of the guarantee ==wised by this section shall bear a xWeansat of each guarantee, indeding the ammnt authorised in each case, on the face of each bass, nnancing or debenture bonds. Said bands shall be paid wing the fnnads deposited to the account of the Special Reosrv* Fund pledged hr the payment of the principal of and inatereot on such debmbsre bands. 9said funds are Insufficient for ft payment of rwb priuseciipal and interest upon , the Agexey shall draw an any off Its aneneambered funds the memary som for the poyment admeb overdue principal and brbpest and shall direct that said sums be eo rwed into the Special ■ 7 LPAA j ttaa Submitted into the public, 801 record in connection with item 14A on 1fL4---q.6 Walter Foennan City Dia." 96- 191.1 Act No. 4 7th 8MCIAL eseaiotw-i*k ABSEMBLY Sept. s0 Rescue Fund. The Office of the Budget and Management shall coaaign annually in the General Budget Joint Pwoolution any mounts needed for the paymmt• of principal and interest on such bonds that cannot be paid as prescribed above. Besides, if necessary, the- Secretary of the Treasury @hall draw on the Redemption Fund, established by Act No. 269 of March 11, 1949,u or any available femds in the Treasury of Puerto Rico, such sums as may be necessary to cover the deficiency in the amount required for the payment of such principal and interest and shall direct that the amounts so drawn be applied to make each payments. The good faith and the credit of the Commonwealth of Puerto Rico are hereby pledged to make such payments. Provided, that provisional financing secured under the provisions of this section shall be guaranteed by a special reserve fund to be established by the Agency, where the premiums to be charged for granting mortgage loan or provisional financing shall be covered: ' And provided, sandards that will gwiern this program, which regulations shall have the force of law once approved by the Secretary of Housing and the Governor." Section 2.--A Section 11-B is hereby added to Act No. 87 of June 26, 1966, as amended,13 to read'as follows: 'Section 11-B.--The Agency is hereby authorised to issue bonds from time tD time for the purposes established in Section 11 of this actl4 cap to a maximum amount of $90,000,000 plus capitalization of interest for a maximum term of one (1) year phis the costs of said bond issue. Said bonds shall have a maximum maturity of 20 yeaan from tlseir date ad issue. The good faith and credit of the Cormonwealth of Puerto Rico shall not be pledged for the payment of the principal and interest of each bonds. Once said bonds have been issued and their proceeds have been used to pay up the provisional eonsbv tion financing secured by virtue of Section 11 of this sei,u *the warranty of the Commonwealth and the Agent '. anduwIty to ism debenture bonds under the provisions of See" Ills ev' M be revoked. s is ILMA. M 402-481. n T LP.R. $ 97Ib. . u I LPAJL 1271. M Submitted into the public amrecord in connection vvith item -A_ on 3z/ Walter 96— 191,1 gi6pt, CWMONWRAL2VS GttA3A)MM Act No. 4 Said bonds shall be paid using the funds deposited to the account of the Special Reserve Fund pledged for the payment of the principal and interest on inch debenture bonds. If said funds are iciest for the payment of such principal and interest upon maturity, the Asew Mall dnw on saw of its unencumbered funds such sums needed for the payment of such orwdue principal and i><t&r�aet and sW direct that acid same be covered into the Special Reserve Pun& The suns needed for the payment of principal and interest on said bonds that cannot be paid in the manner prescn'bed above droll be appropriated to the Agency to be charged to unencumbered funds in the Commonwealth Treasury. The Office of the Budget and Management &hail consign said e i s in the General Budget Joint Resolution, annivaVy, beginning in the 1987--88 .fecal year until said. bond& have bean WIT-paid-4W - - Sectim B.B.--A Section 11-C -ia hereby added to Act No. 87 of June M 19ML as amended, rr to read as follows: "Section 11-a--In the ease of loans wbow unpaid balances and interest must be paid by the Agen er through a bond issue or by iWng the Reserve Fund, the Agenef &bail adopt a plan of action addressed to minmum the lae&ee incurred. Among other things it shall ascertain that no illegal claims beeavae of violations of regulations are paid, and shall make every ei?loct to recoup the losses of the persona who swinx! as guarantors and to dispose of the assets to be.acquh*d so that their maztmum worth may be rowmvd. The Agency shall exercise the neessewry discretion pursuant to its powers to dedda the coarse of action to be followed to achieve dw above ob}ecuves in eta prop eat that suffers loom The Agency " wppart its decisions with a cost -profit a»mb►av appirakala WW awbsis, finaneW studies and any otter Mechazim it donne peoper and neeeseary to Jed* its deeZsioss and show that it has meted with t1w higWA degree of dMoneo aW in h&amoaa;Y with the Commaswealthoe iat+erwt is 'ps kUw lsbae;W Sestina 4.--A Section 11-D is bW41W added io AfA Na 87 of June 196r6� as asnewi4 s to read as 68*ww RT LPJLA.1171& %%T L.P. LA. I M& Submitted into the public 8QB record in connection with item .o_ on 3_•�-O Walter Foc.;,wan City Clerk �r- 191,r Act No. 4 7* sPZCUL SEMON--10h Aseslts2,Y SOPL 38 ' coon n-D.--After the effective date od this act, and no ktw thaafifteen (15) days after the end of each quarter, the Agency shall submit a quarterly report to the Governor of Puerto Rico, the Office of the Budget and Management, and the Legislature, on each loan paid -up by the unsecured bond issue authorized herein. Said reports shall specify the following. (1) Balance of each loan when liquidated, itemized by principal and interest (2) Evidence od the source of the payments made, including attesting evidence that the mortgagee made the collecdon efforts requlrerl by regulations. (8) Steps taken to recoup the guar antara' loom and the amongst recovered, if *any. (4) Description of the assets recovered, itemizing their wrortL (6) Current coat of conservation, management, maintenance, security, insurance, losses due to vandalism and avW others, with — r ITICIOW in the report, W3 a cumulative basis. (6) Interest paid to elate on bonds. (7) List of liquidated asset$ stating the sales price and criteria or norms used in such liquidation or sale- (8) Itemizing of the real loss incurred in each project after charging subsequent costa to *the acquisition of the project by the Agency, and credits for the sale of assets. (9) Any other pertinent information regarding the disposition 0( the project. (14) Evidence of compliance with the provisions of Section 11-C of this act" regarding the diligent administration and disposition of loans and the minimization of losses." Section 5.--Notwithstanding the provisions of Sections 11 and 11- A of Act No. 97 of June 25, 1965, as amended,20 as of the date ct approval of this act the Housing Bank and Financing Agency wl not secure loans for the construction of housing under the provisdonal financing inautance program provided in said W. except in those cases in which a contract was granted prior to the edeative date of this act. Section 6.--This act shall take effect immediately after its approval. A"r ved September 84 1986. u T LP a A _ 1rtlr- •T LPJL& N rM 271a. Submitted into the public record in connection with item .„_ on d- 96_ 191,1 k�- r Ch. 21 SUBSIDY PLAN FOR INTEREST , T.17 § 651 Chapter.19. RegWation for Building or Structure Devoted to Rent for Residential Purposes § 603. Technical provisions j Cross references. ! Multistory buildings, safety measures, requirements, see section 802 of this title. Time for compliance with these requirements, see Effectiveness note under section 801. § 609. Necessary repair works; eviction of tenants Cross references. Controversies between landlord and tenant on urgent matters, power of magistrates, see section 2872 of Title $2. § 614. Penalties Fixed sentence system. Act June 4, 1980, No. 100, repealed the indeterminate sentence system in Puerto Rico, and provided that where a sentence of imprisonment is imposed, a fixed sentence of specific duration is set according to the statute violated. See section 1044 of Title 34. Chapter 21. Commonwealth Subsidy Plan for Interest on Mortgage Markets SECTION ANALYSIS 651. Definitions . 652. Creation of program 653. Purpose; limitation; interest 653a. Creation of a Board; composition functions 654. Schedule of adjusted monthly income 655. Socio-economic investigation 656. Schedule of readjustment 657. --Requirements 658. Expenses incurred in operation of program; annual al- lowance 659. Regulations 660. Requirements in purchase and sale 660a. Additional obligations --July 23, 1974 660b. Additional obligations —November 14, 1974 660c. Extension_ of subsidy to new acquirers through non- - - compliance of original owner -' 661. Program -for interest on home mortgages —Authoriza- tion and limits 661a. -' Definitions 661b. —?agulatiuns for det4,rtnining eligibili►;y 177 Submitted into the public record in connection with item on 3'-f- - 6 Walter Fnf:man CIIV clerk 96— 191.1 k._. 1 T.17 § 651 HOUSING 1 661c. —Duration and readjustment - 661d. —Guidelines for approval of units and projects 661e. —Mortgage loans, insurance 661f. —Other housing eligible for subsidy; funds Ch. 21 § 651. Definitions The following terms used in this chapter shall be defined as follows: "New Construction" —Any dwelling which has been constructed but not occupied, which is being constructed and/or is going to be constructed. "Adjusted monthly income" —means onertwelfth (1/12) part of the annual income of the family after deducting therefrom the credits provided in section 654 of this title. "Family of moderate income" —means any family of two or more persons whose income is higher than that of a family whose income renders such family ineligible to occupy public housing projects constructed and managed by the Department of Housing and/or its ascribed organizations and at the same time is 961ow as not to enable it to rent or buy an adequate, safe and hygienic dwelling constructed by a private enterprise. There shall also be considered as family of moderate income any family of two or more persons which, though eligible to occupy a public dwelling, has sufficient income to acquire is lease or by purchase a house built under the provisions of this chapter. The Secretary of housing shall determine from time to time what is the maximum income of the families taking advantage of this program. —July 5, 1973, No. 10, p. 771, § 1, eff. July 5, 1973; amended Nov. 14, 1974, No. 6, Part 2, p. 727, § 1, eff. Nov. 14, 1974; June 22, 1975, No. 69, p, 172, eff, June 22, 1971a. —1975. The 1975 Act eliminated "for sale" at and of definition of "New construc- tion". —1974. The 1974 Act amended the definition of the term "New construction", which formerly read "any dwelling whose construction is started after the approval of the subsidy plan". Statement of motives. Acts June 22, 1975, No. 69, Nov. 14, 1974, No. 6 and 'July 5 1973, No. 10 contained statements of motives. See 'Laws of Puerto Rico 197F+,, p. 172, 1974, Part 2, p. 727 and 1973, p. 171. g 652. Creation of pro�;rarn The Secretary of Housing 1:3 hereb7 authorized to create u pru- 17 Submitted into the public record in connection with item -34-4 on •56 Waiter k:a.- t I Cit. 21 SUBSIDY PLAN FOR INTEREST T.17 § 653 gram to subsidize the cost of interest of the mortgage market i to families of moderate income through its ascribed organizations, the Housing Bank and/or the Urban Renewal and Housing Corpo- ration, so as to help said families to acquire or rent a dwelling of new construction. Any public or private entity, including the Co- operative Development Administration, may construct dwellings under the terms and conditions established in this chapter and the Regulations. The families to which the dwellings are sold may avail themselves of the subsidy provided in this chapter. The dwellings so developed may be financed through any financing method avail- able in the market or in accordance with the low-cost housing program ordered by sections 86-94 of this title, and section 45a of this title. --July 5, 1973, No. 10, p. 771, § 2, eff. July 5, 1973; amended Oct. 26, 1973, No.' 4, p. 859; eff. Oct. 26, 1973. Amendments-1973. Act Oct. 26, 1973, No. 4, added "or rent" utter "acquire" in first sentence, and added last three sentences. § 653. Purpose; limitation; interest The subsidy shall consist of reducing the cost of the interest in the mortgage market guaranteed by dwellings, to a minimum interest cost of 17o' * [annually, provided the family can pay the monthly installment of the mortgage at 17o' ] -writh 20 % of its ad- justed monthly income. The subsidy authorized herein shall not be tendered to any dwelling unit located in a project in which the average price per unit exceeds that established by regulations or herein. For a family to avail itself of the subsidy authorized herein in the purchase of a dwelling of an average price in excess of $25,000, it shall pay the, monthly installments of the mortgage at an interest rate which shall not be less than 317a. If the 20% of the adjusted monthly income results in a higher. monthly installment, the family shall be bound to pay said amount. -July 5, 1973, No. 10, p. 771, § 3, eff. July 5, 1973; amended Oct. 26, 1973, No. 4, p. 859, eff. Oct. 26, 197$; June 20, 1978, No. 11, p. 394, $1, eff. June 20, 1978. The 1978 Act, in first paragraph, did not set out, a parently inadvertently, the bracketed phrase; in the second paragraph, it changed "is higher than • The phrase uppea,r Ig: In trrackets was not set oat, apparently Inadvertently, i b1 section 1 of Act June 20, 1978, No. 11. See amendment note under. thla Section. Submitted into the pilbiic record in connection with item .M_ on 6 Waiter Fo,"91rnan City Cleac 96- 191.1 k_1 IIO'USING Ch. 21 i $25,000" to "exceeds that established by regulations or herein" in first sentence; j in the second sentence, added "an average" before "price" and increased the price from $20,000 to $25,000. —1973. Act Oct. 26, 1973, No. 4, in second paragraph, changed "dwellingwith a price in excess of $25,000" to "dwelling unit located in a project where the average price per unit is higher than $25,000." in first sentence; eliminated !' the phrase "and up to a maximum of $25,000" after 11$20,00011, and changed "ranging between 2 and 3% as may be determined by the Secretary of Housing by regulation" to "not lower than 3%" in second sentence. Statement of motives. Act June 20, 1978, No. 11, contained a statement of motives. See Laws of Puerto Rico 1978, p. 394. § 653a. Creation of a Board; composition and functions A Board composed of the Secretary of Housing, who shall be its chairman, the Secretary of the Treasury, the Director of the Budget Bureau, the President of the Housing Bank and Finance Agency and the Chairman of the Planning Board, is hereby created, which shall be charged with fixing, through regulations, when the market conditions require it, the average maximum price per unit under which a subsidy in the mortgage interest shall be granted to middle -income families who purchase newly -constructed dwellings under the terms of this chapter. The Board shall fix an average maximum price per unit for dwellings developed in low -density zones, and a maximum price. {o.;• dwellings developed on high -cost and/or construction lands, and in buildings classified as multi- family dwellings according to the rules and regulations of the Plan- ning Board. As Iong as the average prices authorized herein are not approved by regulations, the prices established in section 660 (b) of this title shall prevail. ---July 5, 1973, No. 10, p. 771, § 3A, added June 20, 1978, No. 11, p. 394, § 2, off. June 20, 1978. Statement of motives. Act June 20, 1978, No. 11, contained a statement of motives. See .Laws of Puerto Rico 1978, p. 394. j1 § 654. Schedule of adjusted monthly income The adjusted monthly income shall be equal to one -twelfth (1/12) part of the total income of the family after deducting the following credits: (1) 107o of the annual gross income for payroll deductions. (2) $300 for each unemployed dependent under 21 years. (3) $300 for any member of the family over 65 years with no income. ' (4) $300 for any rnernber o! the 1=11y physically or inentally disabled. ' '130 Submitted into the public record in connection with item �_ on . --L ., 6 Walter l=oeman City Clo r, 95— 191.1 Ch. 21 SUBSIDY PLAN FOR INTEREST , T.17 § 658 (5) $300 for each dependent over 21 years pursuing university studies. The amount of the adjusted monthly income shall be computed j, at the time of determining the subsidy corresponding to the in- terested family. --July 5, 1973, No. 10, p. 771, § 4, eff. July 5, 1973. I § 655. Socio-economic investigation To determine the amount of the initial subsidy in each case, the Department of Housing or its ascribed organizations shall carry out a socio-economic investigation of the families interested in said subsidy. --July 5, 1973, No. 10, p. 771, § 5, eff. July 5, 1973. § 656. Schedule of readjustment The subsidy shall be readjusted every two years in accordance with the below -described schedule taking as a basis the initial subsidy, or that is, the initial subsidy equal to one hundred (100 %) percent: First and Second Years 100.00% . Third and Fourth Years • 88.57% _ Fifth and Sixth Years 76.789o' Seventh ,and Eighth Years 63.789o' Ninth and Tenth Years 49.44-7, Eleventh and Twelfth Years 33.64% Thirteenth and Fourteenth Years 16.227o' Fifteenth Year 0.00%- -July 5, 1973, No. 10, p. 771, § 6, eff. July 5, 1973. § 657. —Requirements To continue receiving the benefit of the subsidy granted by this chapter, in accordance with the schedule set in section 656 of this title, the beneficiary shall keep up to date the share of his monthly payments. —July 5, 1978, No. 10, p. 771, § 7, eff. July 5, 1973. § 658. Expenses incurred in operation of program; annual ai- lowance The Secretary of Housing is hereby authorized -to incur obli- gations up to the sum of nine million two hundred twenty thou- sand (9,220,000) dollars for -the payment of the interest subsidy during the first year of the effectiveness of the program author- ized by this chapter. The Bureau of the Budget shall set aside an - Submitted into the public record in connection with item ! on ' 14 - to Walter i •oeman Cif,, D'e"q( 96- 191.1 k__ 1'.17 j (iCiS HOUSING Ch.'l1 nually in the Joint Resolution of the General Budget the amounts necessary to meet the obligations which the Department may incur in the operation of this program. --July 5, 1973, No. 10, p. 771, § 8, eh. July 5, 1973. § 659. Regulations The Secretary of Housing shall adopt such regulations as may be necessary and consistent with the purposes of this *chapter to ex- pedite compliance with the provisions hereof. This regulation shall have the force of law after promulgated by the Governor. —July 5, 1973, No. 10, p. 771, § 9, eff. July 5, 1973. § 660. Requirements in purchase and sale If the buyer of a dwelling, beneficiary of the subsidy program established in this chapter, sells his dwelling to a third person, the Secretary of Housing shall have power to recover from the seller the subsidy received plus interest thereon at the same rate fixed in the mortgage if the sale is made in violation of the rules that the Secretary of Housing may establish in the regulation for suth purposes. In order that the new buyer may avail himself of the above -established subsidy, he must meet the following require- ments: (1) The mortgage monthly payments must be up to date. (2) Both the original buyer and the new buyer must have com- plied with all the provisions of the regulations and laws appli- cable, while the subsidy is in force. (3) He must have an adjusted monthly income enough to pay his share in the monthly payment corresponding to the year of the sale with 20% of his adjusted income. If 20% of the ad- justed monthly income is higher than the proportion of his pay- ment, he shall be bound to pay such higher sum. On the contrary, if 20% of the adjusted monthly income is equal or higher than the monthly payment of the mortgage at the interest in the market, the subsidy for the dwelling shall end immediately. —July 5, 1972, No. 10, p. 771, § 10, eff. Jully 5, 1973. § 660a. Additional 6611gations.—July 23, 1974 The Secretary of the Housing Department is heresy authorized to incur additional obligations Lunde: this, chapter to such extent that in no year the total payment col additional subsidy derl,�ring frorn -the obligations herein authorized -=ay exceed two rrillhon five hundred Submitted into the public record in connection with+ item 3, on Walter l'=oernan City Clerk 9r_ 191.1 Clt. 21 SUBSIDY PLAN FOR INTEREST T.17 § 660c thousand (2,500,000) dollars; Provided, That the subsidy hereby authorized shall not be offered to any housing unit located in a proj- ect in which the average price per unit is more than $25,000 or $28,500 in areas of expensive land or construction, and in buildings classified as multistory, pursuant to the standards and regulations of the Puerto Rico Planning Board. --July 5, 1973, No. 10, p. 771, § 10 (A), added July 23,1974, No. 244, Part 2, p. 234, eff. July 23,1974. Statement of motives. Act July 23,1974, No. 244, contained a statement of motives. § 660b. Additional obligations --November 14, 1974 The Secretary of the Housing Department is hereby authorized to incur additional obligations under this chapter to such extent that in no year the total payment of additional subsidy deriving from the obligations herein authorized may exceed twelve million two hun- dred thousand (12,200,000) dollars in addition to the subsidy already bound by obligations incurred under the provisions of the original text of this chapter and section 660a added on July 23, 1974; Pro- vided, That the subsidy herein authorized shall not be offered to any housing unit located in a project in which the average price per unit is more than $26,500 or $30,000 in expensive land and/or construc- tion areas, and in buildings classified as multistory, pursuant to the standards and regulations of the Puerto Rico Planning Board. --- July 5, 1973, No. 10, p. 771, § 10(B), added Nov. 14, 1974, No. 6, Part 2, p. 727, § 2, eff. Nov. 14, 1974. Statement of motive& Act November 14, 1974, No. 6, contained a statement of motives. § 660c. Extension of subsidy to new acquirers through noncom- pliance of original owner The Secretary shall have the power to extend the mortgage inter• eat subsidy to moderate -income families who purchase' homes which, under the subsidy plan provided herein, are acquired from their owners by the Urban Renewal and Housing Corporation or by the Housing Bank and Finance Agency because of noncompli- ance with the mortgage contract, or when they resort to payment in kind, turning in their homes because they find it impossible to comply vrith the obligations contracted, or for other reasons. Families to whom these homes are sold must be eligible for the benefits of -this chapter, and the subsidy shall be granted for the -term and pursuant to -the schedule established in s_:Ction 656 of this 183 Submitted into the public record in connection with Item 1-1—A_ on I—t � -%6 Walter Foaman City Giedl 96- 191.1 T.17 § (i(;Oe HOUSING Ch. 21 title. -July 5, 1973, No. 10, § 11, added June 14, 1980, No. 14.t, P. 557, § 1, eff. June 14, 1980. Renumbering. Section 2 of Act June 14, 1980, No. 144, renumbered former section 11 of Act July 5, 1973, No. 10, as section 12, which section related to the effectiveness of said act. Statement of motives. Act June 14, 1980, No. 144, contained a statement of motives. See Laws of Puerto Rico 1980, p. 567. § 661. Program for interest on home mortgaged --Authorization and limits The dousing Department is hereby authorized to establish a program o grant mortgage interest subsidies on four thousand (4,000) ne homes during the life thereof, or up to a'maximum of thirty (30) ars on those granted to moderate -income families, to finance the p chase of their homes. -,June 14, 1980, No. 141, p. 527, § 1, eff. J e 14, 1980. Codification. Sections 661-661f o this title are not included within the term "chapter" used in sections 651-660c f this title. Statement of motives. Act June 14, 1980, No. 1 , contained a statement of motives. See Laws of Puerto Rico 1980, p. 527. § 661a. --Definitions \ (a) Dwelling --destined to\xnoderate-income families as deter- mined from time to time by the ;secretary. (b) Moderate -Income Fami1;- means any family whose income at any given momendoes not ear d that determined by regula- tions by the Sec: etary as maximur income for families to be benefited under sections 661-661f of the title. (c) Beneficiary -means they'owner-o�cuoant who is eligible to receive the subsidy provided by sections 66\661f of this title. (d) Secretary -means the Secretary of ousing of Puerto Rico. (e) Department -means the Department of\Housing of Puerto Rico. -June 14, 1980, No. 141, 4. 527, '§ 2, aff. hire 14, 1980. § 661b. -Regulations for determining eligibility The Secretary shall adopt the regulations needed and consistent with the purposes of sections 661-661f of this title, which shall be- come effective when they ars an -proved by the Governor. Ths :regu- lations shall establisr. the _, rlteria and procedures -to be used, in de- termining eligibility, so that these fa,nrilies may pay ,ap to a -mini. 18.1 Submitted into the public record in connection with item . .__ on 1 't �L-16 Walter Foe;-nan City Cle}rls 96- 191.1 k, E,S%ORUITINIO LEG-!$LATIVO, INC. • fin. j5��'; Sa9r „�.irin PI.E'.'u R,( 'In n� '8nP''2�•13a9 '22-P, 758 (Senate Bill 1241) ACT 141, 14 June 1980 To establish in the Department of Housing a program to subsidize in- terest on housing mortgages to the effect that the moderate - income family will pay up to a minimum of the equivalent of 5% annual interest, in conformity with norms established by the Se- cretary of Housing; set forth the minimum requirements by which the program will be carried out; authorize the Secretary of Submitted Into the publieHousing to establish the necessary regulations for carrying out record in connection wit the purposes hereof and authorize him to incur in obligations up bto the amount of three hundred thousand dollars ($300,000) during item-- oh' --the first year, to initiate the development of this program that Walter Foelilanwill encompass the interest subsidy for four thousand (4,000) . City ClUkdwelling units. EkPLAINATION OF MOTIVES Governmental housing programs of social interest are directed towards two broad sectors of the Puerto Rican community, that composed of low-income families and that of moderate -income families who do not fulfill the requirements of private enterprise and need government help to establish their homes. Taking into consideration family income, the Department of Housing offers different alternativesso that people may take advantage of the various housing programs that are offered. The principal activities for low-income families in the urban zone consist of public housing rental programs,•mainly financed with funds from the Federal Government, as well as federal programs for j rent or interest subsidy, and others provided by federal statutes. official trans- With appropriations from the Legislature of Puerto Rico other programs -:_ion. Copyright © have been developed, such as lots with minimum services and rural com- 80. Escrutinio munities. :vislativo, Inc. For the sector made up of moderate -income families whose economic capacity and borrowing ability do not allow them to rent or acquire a dwelling on the private market without obtaining government aid, low-cost housing programs have been developed under the provisions of Act 82, 26 June 1964, as amended. I Subsequently the Legislature approved Act 10, 5 July 1973, to grant descending interest subsidy for fourteen (14) years. The units authorized by this law have been substantially pledged. This law proposes the creation of a program to subsidize mortgageI interests on housing, to the effect that the moderate -income family PARA MEJOR COMUNICACION ENTRE EL CIUDADANO Y SU GOBIERNO k—. -2- will pay up to a minimum of the equivalent of five per centum (5%) annual interest. This subsidy will be for the life of the mortgage or a maximum of thirty (30) years, renewable every two (2) years in ac- cordance with changes in income or family make-up of the participants or when merited. This reduction in the payment of interests will make it possible for many moderate -income families to purchase a dwelling of social in- terest constructed by private enterprise for that purpose. On the other hand, the construction of dwellings within the scope of this law will re- present an additional injection of funds which will contribute to gener- ating jobs and income, helping to strengthen the economic climate of the country and the activity of housing construction. Be it enacted by the Legislature of Puerto Rico: Article 1. To authorize the Department of Housing to establish a program to grant mortgage interest subsidies on four thousand (4,000) new dwellings during their life, or up to a maximum of thirty (30) years, to be granted to moderate -income families in order to finance the acquisi- tion of their home. Article 2. Definitions a) Housing -- destined for moderate -income families as the Secretary may determine from time to time. b) Moderate -Income Family -- means any family whose income at any time is not greater than that determined by the Secretary by regulation as the maximum income for families benefitting hereunder. c) Beneficiary -- means the occupying owner who is eligible to re- ceive the subsidy provided hereby. d) Secretary -- means the Secretary of Housing of Puerto Rico. e) Department -- means the Puerto Rico Department of Housing. Article 3. The Secretary shall adopt the regulations that may be ne- CL U 2 1 LLL yW�. o c o O U z7 c °? . 'E a � U E cessary and consistent with the purposes hereof, which shall become effective once they are approved by the Governor. The regulations shall establish the criteria and procedures to be utilized in determining eligibility, to the effect that they will pay up to a minimum of the equivalent of five per centum N ESCRUTINIO LEGISLATIVO INC.! Mona L. Gordon, Presidenta s (Act 141, 14 june 1980) -3- (5%) annual interest. I I Article 4. The subsidy provided hereunder shall not exceed the life of the mort- gage and shall be readjusted every two years or when merited pursuant with the in- creases or decreases in the income of the family group of the beneficiary making use thereof. Article 5. The Secretary of Housing shall adopt the corresponding guide -lines for granting his approval of housing units or projects to be developed with the subsi- dy support authorized hereunder. Article 6. The Housing Bank and Financing Agency may insure the mortgage loans originating under this program and pursuant to norms established by the Mortgage Guarantee Insurance provided by Act 87, 25 June 1965, as amended. originated hereby Article 7. A subsidy hereunder may be granted to housing units/that have been acquired by the Housing Bank and Financing Agency through voluntary delivery or re- claimed by the mortgage insurance program under Act 87, 25 June 1965, as amended. The Housing Department is hereby authorized to incurin obligations up to the amount of three hundred thousand dollars ($300,000) for the payment of the interest subsidy for fiscal year 1980-81, through the Puerto Rico Housing Bank and Financing Agency. The necessary funds for subsequent years, for the purpose of honoring the obli- gations in which the Housing Bank and Financing Agency incurs in administering this act, shall be assigned in the budget of the Housing Department. Article 8. This act shall take effect immediately after its approval. Submitted into the public record in connection with item on Warier Frio un City Glen: I i 9r_ 191.t PARA MEJOR COMUNICACION ENTRE EL CIUDADANO Y SU GOBIERNO ES9RLITINIO LEA "SLATIVO, INC. (Senate Bill 895) Submitted into -the public record in connection' witl item ._ on a!' ff!k- Walter Foeman City Clerk ':nofficial trans- :ation. Copy- right 0 1979. scrutinio ..egislativo, Inc. ACT 58, 1 June 1979 authorize the Housing Department to grant interest subsidies and guarantee mortgages during fiscal years 1978-79, 1979-80 and 1980-81, on those dwellings that have been approved by the Farmers Home Administration and the Housing Department, when the above - mentioned federal agency cannot finance the mortgages and par- tially subsidize the interest under the provisions of Section 502 of the Federal Housing Act; and to authorize it, through the Housing Financing Agency and Bank, to incur in obligations up to the additional amount of two million, three hundred thousand (2,300,000) dollars for those same purposes; and to assign funds to carry out the purposes hereof. EXPLANATION OF MOTIVES The Farmers Home Administration (FmHA) of the Federal Agriculture Department has contributed significantly to the permanent financing of dwellings in Puerto Rico. Under Section 502 of the Federal Housing Act, FmHA has financed 7,739 housing units during the past two years, granting subsidies on the mortgage interest to low-income Puerto Rican families. During the federal fiscal year 1978, FmHA financed 69% of all dwellings constructed in Puerto Rico that year in geographic areas where federal legislation permits FmHA to operate. This meant direct aid to 4,243 Puerto Rican families, many of which pay less than half the monthly payment which they would otherwise be obliged to pay, be- cause the federal government subsidizes the difference. Traditionally in Puerto Rico, the demand for loans for financing dwellings ran at a par with the annual assignment of funds that the State Office of FmHA received. The attractiveness of the FmHA program motivated urbanization promotors to file multiple projects with that federal agency and they were approved in conformity with federal regulations. Taking advantage of these approvals, the construction was 88 housing developments was started, a total of 12,438 dwelling units to be purchased by Puerto Rican families of limited economic resources. These families expected FmHA to finance their homes through the in- ' terest subsidy program. Because of the unprecedented demand for j loans of this type, FmHA has publicly warned that the aspirations of all those families cduld not be satisfied, given the assignment of PARA MEJOR COMUNICACION ENTRE EL CIUDADANO Y SU G081ERNO 1.� - 2- • available funds. This situation could mean that during federal fiscal years 1979 and 1980,3,000 families would not be able to satisfy their O.C: desire to own an adequate house. cc tY g U� a av As a consequence of the demand for housing that resulted from the , above -mentioned program, the construction industry began a vigorous a) U program based on an accelerated rhythm of construction, contracting o c pledges and obligations with private banking for interim financing for c c a that construction. U - c� If the rhythm of delivery of houses continues in confor-mity with =.a the funds assigned by FmHA, the construction industry will be beset p by serious economic difficulties that could adversely affect about ti 5,000 direct jobs and 3,000 indirect jobs in that industry. It is the responsibility of this government to watch over and pro- tect the interests of the Puerto Rican people and therefore, to proceed to take measures that will correct the difficulties that have been set forth here, by providing dwellings of social interest, maintaining a vigorous construction industry for the good of our economy and main- taining jobs that would be lost if this program were not carried out. Be it enacted by the Legislature of Puerto Rico: Article 1. To authorize the Housing Department to grant interest subsidies and guarantee thirty (30) year mortgages during fiscal years 1978-79, 1979-80 and 1980-81, on those dwelling that have been approved by the Farmers Home Administration (FmHA) and by the Housing Department, up to a maximum of 3,000 units, when the above -mentioned federal agency can- not finance the mortgages and partially subsidize the interest on the mortgage loans under the provisions of Asection 502 of the Federal Housing Act. The Secretary of Housing shall adopt the corresponding guidelines in order to grant his approval on housing units or projects on which conditional commitments will be granted, so that promoters and contractors using the state subsidy herein authorized and the mortgage guarantee authorized by Act 87, 25 June 1965, as amended, may negotiate permanent financing with banks or financial institutions. Article 2. The Housing Department, in coordination with the Farmers Home Administration, shall provide the subsidy authorized hereby in those �'- 191.1 k, 'SCRUTINIO LEGISLATIVO INC. 'Mona L. Gordon. Presidenta �+ Submitted into the publlc Feeard hIon wI� -3- item _34 on 3.'#!J Walter F=oeamn cases in which said federal agency lacks funds for the mortgage financing t1_g4Y>Q4% i possible the subsidy grant under Section 502 of the Federal Housing Act, at the moment' I j the mortgage deed is executed. j Article 3. The Secretary of Housing shall adopt the rules and regulations that may be necessary for the implementation hereof, to enter into effect once they are approved by the Governor and promulgated. These rules and regulations shall establish I the criteria and procedures to be utilized in determining the eligibility of the appli- cant families for the subsidy provided hereby. They shall also determine the amount I of the subsidy, all in harmony with the Farmers Home Administration regulation that Iprovides for a subsidy to permit low- or moderate -income families to acquire newly constructed dwellings at an interest cost for the mortgage of up to 1% annually for those families qualifying for the maximum subsidy. The subsidy shall be for the life of the mortgage and may be reviewed periodically to adjust it according to increased or decreased income of the family taking advantage of it. Article 4. The Housing Department, through the Puerto Rico Housing Financing Agency and Bank is hereby authorized to incur in obligations up to the amount of two i million three hundred thousand (2,300,000) dollars to pay the interest subsidy for fiscal years 1978-79 and 1979-80. The Puerto Rico Housing Financing Agency and Bank is assigned the amount of two million six hundred thousand (2,600,000) dollars for fiscal year 1979-80 for the Assured Mortgages Reserve Fund, created by virtue of Act 87, 25 June 1965, as amended, in order to provide mortgage guarantee insurance for mortgages originating pursuant herewith. The necessary funds for subsequent years, for the purpose of honoring obligation- i in which the Housing Financing Agency and Bank incurs in administering this act shall jbe appropriated in the budget of the Housing Department. l PARA MEJOR COMUNICACION ENTRE EL CIUDADANO Y SU GOBIERN® 6' '— 19 1, I k, -4- Article 5. That act shall take effect immediately after its approval, but the rules and regulations authorized under Article 3 shall be approved and promulgated no later than sixty (60) days from and after the effective date hereof. 6ubmitted into the pul)iic; record in connection with itom 3M— on Ant—or-56 VUui(Cr FC1:?17;ar1 9r,_ 19111 I Act No. 115 £nd REGULAR SESSION-10th ASSEMBLY July 11 (H.B. 920) (Conference) Housing —State Subsidy; Amendments [No. 115] [Approved July 11, 19861 AN ACT To add Section 12A to Act No. 146 of June 30, 1961, as amended, which creates the Housing Bank and Finance Agency of Puerto Rico; to add Section 7A and amend Section 8 of Act No. 10 of July 5, 1973, as amended; to add Section 4A and amend Section 5 of Act No. 58 of June 1, 1979, as amended; to add Section 6A and amend Section 7 of Act No. 141 of June 14, 1980, as amended, known as the "Subsidy Acts"; in order to authorize the issue of bonds to prepay,. purchase, or otherwise totally or partially settle the obligations contracted under the subsidy acts; provide for the adjustment and fixing of the monthly mortgage payments; provide for the recovery of the recoupment of the prepayment in case of the sale or transfer of the mortgaged property; provide for subrogation in the case of the total prepayment of the mortgages, and provide for the reduction of the remaining installments of the mortgages subject to partial prepayment. STATEMENT OF MOTIVES The Commonwealth of Puerto Rico has granted highest priority to the development of an aggressive program for the promotion of the construction and financing of housing, especially for low and moderate income families. One of the principal mechanisms in force to carry out said public policy is the Puerto Rico Housing Bank and Finance Agency's subsidy program, pursuant to Act No. 10 of July 5, 1973, Act No. 68 of June 1, 1979, and Act No. 141 of June 14, 1980, as they have been amended. Under said program, the Government of Puerto Rico enables low or moderate income families to acquire their dwellings on their own account at a cost they can afford. Each month, the Government pays a portion of the monthly amortization fee of the mortgage debt according to the applicable law to the mortgagees of the families 366 Submitted into the public record in connection wvifli Item _30 on �e � Walter Foernan C41 Clvr!< 96— 191.1 July 11 HOUSING —STATE SUBSIDY Act No. 115 which are beneficiaries of the -hove-cited statutes through the Housing Bank. These subsidies are established based on the premise of each beneficiary family's capacity to pay. For instance, Act No. 10 presumes that the beneficiary families will increase their income, and that after 14 years they will no longer need a subsidy to meet their obligations for they shall be financially able to pay the total amount of each installment on their own account, or they may have sold their property to a third party. Act No. 58 and Act No. 141 also foresee the increase in the beneficiary family's income although they offer subsidies for the entire life of mortgages. Thus, they provide that as their income increases the subsidies will be reduced. Some of the premises on which the above -stated subsidy acts were established have not been fulfilled. Against all expectations, most of the beneficiary families have not increased their income and, therefore, most of them receive the maximum subsidy the law provides. As a result, the delinquency in payments and foreclosures of mortgages have also increased considerably. Most of the mortgages subsidized under the above program are secured by the government under Act No. 87 of June 25, 1965, as amended. The foreclosure of these mortgages not only affects the public treasury because of the cost of securing them under Act No. 87, but it also has a considerable socioeconomic impact on the community. It affects the beauty, the environment and the worth of the subsidized urbanizations because the properties that are foreclosed are abandoned in significant numbers. This has harmed the owners of the other properties whose value is thus reduced and the govern- ment, which finds it difficult to sell those properties that it acquires under Act No. 87, under such conditions. All this has also had a considerable financial effect. The budget of $42,500,000 appropriated for the payment of subsidies is not sufficient. The deficit for the 199-86 fiscal year is of $1,500,000. Only $10,000,000 are left in the reserve of $29,000,000 which was available in January 1985, for the acquisition of foreclosed housing as provided in Act No. 87. The inventory of $25,000,000 in properties acquired under the effects of said act has risen to $33,000,000 during the year. In view of the fact that subsidized mortgages have an average life of 23 years in the case of Act No. 10, and of 26 years in the cases under Act No. 58 and Act No. 141, the projection of the conditions described above points to a critical situation from the economic point of view that should be attended 367 Submitted into the public record in connection with item —39 on &-_4 r96 Walter Fazicn,�n City Clork Act No. 115 2nd REGULAR SESSION —loth ASSEMBLY July 11 to immediately in order to continue developing the policy of high public interest that the Government of Puerto Rico is executing in the area of housing. The mechanisms created hereunder have the purpose of settling the subsidies by prepaying, purchasing or paying them off in any other way. The government has demonstrated that by using these mechanisms it can achieve the objectives of the subsidy program without having to increase its investment by charging it to the public treasury and without substantially affecting the financial institutions that granted the mortgage loans that shall be prepaid, purchased or otherwise settled. At the same time, it shall enable the government to stabilize the amount that the subsidy program's beneficiaries pay for the remaining term of their mortgages so they can meet their obligations. On the other hand, there can be cases of citizens whose dwellings have been acquired by the Housing Bank and Finance Agency, which have been turned in voluntarily by the debtor, or because they were repossessed from the mortgage insurance program, as well as cases in which the mortgagor has had problems which have prevented him from keeping his monthly mortgage payments up to date, or because he has had a confirmed drop in his income which makes it impossible for him to meet such payments pursuant to the standards adopted by the Bank for such purposes. In view of such situations and in the exercise of its powers and faculties, the Housing Bank and Finance Agency shall adopt and establish the remedies it deems are necessary and convenient to implement the social value of this act. The measure also enables the Housing Bank, financially, to continue exercising its corporate purposes which, in the long run, will result in the continuing improvement of housing conditions in Puerto Rico. Be it enacted by the Legislature of Puerto Rico: Section I. —Section 12A is hereby added to Act No. 146 of June 30, 1961, as amended,31 to read as follows: "Section 12A.— (a) The Agency is hereby authorized to issue bonds from time to time in accordance with what is provided in Section 12 of this actu to provide sufficient funds to execute the additional corporate purpose provided herein of prepaying, purchasing or otherwise a' 77 L. P. RA. i 912a. 0 7 L.P.RA. 1912. 368 Submitted into the public record in connection wii item ^ on '0 I Walter Foeman City Cler", 96- 191.1 k'_ Y July 11 HOUSING —STATE SUBSIDY Act No. 115 totally or partially settling its obligation to provide the Department of Housing or the Agency's subsidy pursuant to Act No. 10 of July 5, 1973, as amended,-" Act No. 141 of June 14, 1980,u and .Act No. 58 of June 1, 1979, as amended,35 with regard to the mortgages authorized pursuant to said acts. The Agency may prepay, purchase or otherwise settle its obligation to provide subsidies with regard to all or part of said mortgages, totally or partially prepaying all or some of these or, at the Agency's option, to meet such obligations through agreements with the mortgagees of said mortgages. The Agency is hereby authorized to assign and pledge for the payment of such bonds all or part of the funds consigned annually in the General Budget Joint Resolution for the payment of said subsidy or consigned in the Department of Housing's budget, which had previously been used to settle the obligation to provide subsidies which have been prepaid, purchased or otherwise settled. The obligations to provide subsidies which have been prepaid, pur- chased or otherwise settled pursuant to the authority granted hereunder shall be modified immediately before said prepayment, purchase or other settlement as follows: (i) subject to what is provided in the last sentence of this subsection (a), and notwith- standing the provisions of Section 5 of Act No. 10 of July 5, 1973, as amended,3° the subsidy applicable to each mortgage shall be fixed and established for the remaining term of the mortgage in the amount in effect at the time of the prepayment, purchase or other settlement, and (ii) in the case of subsidies authorized under Act No. 10 of July 5, 1973, as amended," the term of said subsidy shall be extended in such a way that it will subsist for the complete life of the subsidized mortgage. In the case of any subsidized mortgage which shall be prepaid, purchased or otherwise settled pursuant to the authority conferred herein, the Agency shall also be authorized to increase the amount of the subsidy and make the corresponding adjustment to the installment to be paid by the mortgagor according to the mortgage in question, under the mandate or with the consent of the Secretary of Housing, before said prepayment, purchase or other settlement. .3317 LP.R.A. H 651-660c. " 17 LP.RA. if 661-661f. a• 17 LP.RA. 1g 851-85s. 61-660c. re617 LP.RA. !f 6Submitted Into the public 1? LP.RA. 4§ cord In connection with 369 Item - on --' - I Walter Foem;jr, Chy Clr�r' 963- 191. 1 t� Act No. 115 2nd REGULAR SESSION —loth ASSEMBLY July 11 (b) In the event that any obligation to provide subsidies is prepaid I, purchased or otherwise settled by the partial prepayment of the subsidized mortgage, and the mortgagor sells, barters or transfers the mortgaged dwelling in any other way within five (6) years from the partial prepayment of said mortgage, except for transfer by inheritance or legacy, said mortgagor shall be obliged to reimburse part of the prepayment to the agency according to the following table: If the We, barter or Part of the prepayment transfer occurs during the: to be reimbursed: First Year 90% Second Year 70% Third Year 50% Fourth Year 30% Fifth Year 10% (c) The Secretary of Housing shall adopt the rules and regula- tions that are needed to implement the purposes of this section, which shall become effective once they are approved by the Governor and promulgated." Section 2.—Section 7A is hereby added to Act No. 10 of July 5, 1973, as amended,38 to read as follows: "Section 7A.— (a) Notwithstanding any provision to the contrary in the mortgage, after the effective date of this provision every partial prepayment of a mortgage loan subsidized pursuant to the subsidy program established herein shall serve to reduce the amount of each installment instead of reducing the number of installments due. This provision shall also apply to the partial prepayments made within the year following the effective date of this provision with regard to subsidized mortgage loans, when this provision becomes effective. (b) Notwithstanding the provisions of Article 1113 of the Civil Code of Puerto Rico,39 in the event that the Housing Bank and Finance Agency of Puerto Rico fully prepays any subsidized mortgage without the knowledge and consent of the mortgagor, the Housing Bank and Finance Agency of Puerto Rico shall be subrogated to the rights of the mortgagee." a 17 L.P.R.A. ¢ 657a. s 31 L.P.R.A. ¢ 3163. Submitted into the publib record in connection with 370 item iL_ on 'f - :b Walter Foeme ! City Cferf 96— 191.1 d., July 11 HOUSING —STATE SUBSIDY Act No. 115 Section 3.—Section 8 of Act No. 10 of July 5, 1973, as amended,10 is hereby amended to read as follows: "Section 8.— The Secretary of Housing is hereby authorized to incur obliga- tions up to the amount of nine million two hundred and twenty thousand (9,220,000) dollars for the payment of the interest subsidy during the first year of effectiveness of the program authorized by this act. The Bureau of the Budget shall set aside in the General Budget Joint Resolution annually the amounts needed to meet the obligations which the Department of Housing may incur in the operation of this program, including any obligation incurred by the Department of Housing or the Housing Bank and Finance Agency of Puerto Rico with the purpose of prepaying, purchasing or otherwise totally or partially settling the obligations it may contract in the operations of this program." Section 4.—Section 4A is hereby added to Act No. 58 of June 1, 1979, as amended," which shall read as follows: "Section 4A.— (a) Notwithstanding any provisions to the contrary in the mortgage, after the effective date of this provision every partial prepayment of a mortgage subsidized pursuant to the subsidy program established in this act shall serve to reduce the amount of each installment instead of reducing the number of installments due. This provision shall also apply to the partial prepayments made within the year following the effective date of this provision with regard to subsidized mortgage loans, when this provision becomes effective. (b) Notwithstanding the provisions of Article 1113 of the Civil Code of Puerto Rico,12 in the event that the Housing Bank and Finance Agency of Puerto Rico fully prepays any subsidized mortgage without the knowledge and consent of the mortgagor, the Housing Bank and Finance Agency of Puerto Rico shall be subrogated to the rights of the mortgagee." Section 5.—Section 5 of Act No. 58 of June 1, 1979, as amended,43 is hereby amended to read as follows: e 17 L RPLA. 1658. 4117 L.P.R.A. § 855a. 4131 LP.P.A. § 3163. 07 4PXA. 1866. Submitted into the public record in connection with 371 item _ 14 on r �6 Walter Foeman City Clerk 96- 191. 1 I r k__ Act No. 115 2nd REGULAR SESSION —loth ASSEMBLY July 11 "Section 5.— The Department of Housing is hereby authorized through the Housing Bank and Finance Agency of Puerto Rico to incur obligations up to the amount of two million three hundred thousand (2,300,000) dollars for the payment of interest subsidies for fiscal years 1978-79 and 1979-80. The Housing Bank and Finance Agency of Puerto Rico is hereby appropriated the sum of two million six hundred thousand (2,600,000) dollars for the Insured Mortgage Reserve Fund created by virtue of Act No. 87 of June 25, 1965, as amended,++ to provide the mortgage insurance guarantee to the mortgage loans originated under this act. The funds needed for subsequent years to honor the obligations incurred by the Housing Bank and Finance Agency in administer- ing this act, including the obligations which it may incur in order to prepay, purchase or otherwise totally or partially settle the obligations contracted in administering this act shall be consigned in the Department of Housing's budget." Section 6.—Section 5A is hereby added to Act No. 141 of June 14, 1980, as amended,+8 which shall read as follows: "Section 5A.— (a) Notwithstanding any provision to the contrary in the mortgage, after the effective date of this provision every partial prepayment of a mortgage loan subsidized according to the subsidy program established herein shall serve to reduce the amount of each installment instead of reducing the number of installments due. This provision shall also apply to the partial prepayments made within the year following the effective date of this provision with regard to subsidized mortgage loans, when this provision becomes effective. (b) Notwithstanding the provisions of Article 1113 of the Civil Code of Puerto Rico,4" in the event that the Housing Bank and Finance Agency of Puerto Rico fully prepays any subsidized mortgage without the knowledge and consent of the mortgagor, the Housing Bank and Finance Agency of Puerto Rico shall be subrogated to the rights of the mortgagee." N 7 LP.R.A. §§ 261-271a- 417 LP.R.A. ¢ 661d-1. w 31 LP.R.A. g 3163. 372 Submitted into the public record in conne tion wit Item AN on 'f Walter Foe n'rar) City ClerA ;-r- 191. i, July 11 HOUSING —STATE SUBSIDY Act No. 116 Section T--Section 7 of Act No. 141 of June 14, 1980,47 is hereby amended to read as follows: "Section 7.— Subsidies may be granted under this act to housing units that have been acquired by the Hok,sing Bank and Finance Agency having been turned over voluntarily or repossessed from the mortgage insurance program under Act No. 87 of June 25, 1965, as amended,48 created by this act. The Housing Department is hereby authorized through the Housing Bank and Finance Agency of Puerto Rico to incur obligations up to the amount of three hundred thousand (300,000) dollars for the payment of interest subsidies for Fiscal Year 1980- 81. The funds needed to honor the obligations incurred by the Housing Bank and Finance Agency in administrating this act in subsequent years, including any obligation it incurs with the purpose of prepaying, purchasing or otherwise totally or partially settling obligations contracted pursuant to this act, shall be consigned in the Department of Housings budget." Section 8.--This act shall take effect immediately after its approval. - Approved July 11, 1986. i t Housing —State Subsidy; Amendment (S.B. 942) (Conference) [No. 116] f [Approved July 11, 1986] AN ACT To amend Section 11 of Act No. 10 of July 5, 1973, amended, to establish a moratorium in the readjustment of the subsidy of the ! n 17 I.P.&A. $ 661f. 017 L MA. 11 261-271a Submitted into the public 373 record in connection wit item _ 3 on 'f Walter F=or_rnan City Cle►'- r9r- 19 t.- 4.98) (No. 124) (Approved December 10, 1993) AN ACT To establish a Program to Subsidize home mortgage monthly i payment and down payment through the Housing Bank and i Finance Agency of Puerto Rico to enable low or moderate -income families to acquire existing homes or new homes: state the general standards under which it shall be implemented; authorize the Secretary of Housing to adopt the regulations for the implementation of the Program and to provide for funds to finance the Program. i STATEMENT OF MOTIVES In spite of the numerous efforts made by the Government of Puerto Rico through the use of resources provided by programs subsidized with fund$ of the Commonwealth of Puerto Rico and by federal programs, the need of housing of low or moderate -income families or individuals is one of the pressing needs we must meet. The capacity of the people from the abovestated economic sectors to pay, does not allow them to acquire housing in the conventional market at prevailing rates, even though these have substantially decreased. The inventory of housing at accessible prices is minuscule if we take in consideration the number of needy families. In establishing a housing program of social interest, one of the elements that deserves special Submitted into the public record in connection Wit item -3W on -1 Walter Foernan City Clef!' 966— 19 L -2- ideration is the monthly mortgage payment these families or individuals can afford in view of their income. A subsidy is definitely required so that monthly payments can be afforded by them, and additional financial assistance to reduce their share of the down payment. The construction industry, with its multiplying effect on f6 r the economy, requires a continuous stimulus €-rro the public and private sectors. The construction of homes for low or moderate -income families or individuals keeping prices within reasonable limits, as well as the substantial rehabilitation represents a vigorous impulse for said industry. The establishment of a program of this nature means multiple benefits for diverse social and economic sectors. BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.- This Act shall be known as "The Social Interest Housing Subsidy Program". Section 2.- Definitions: In accordance with this Act, the terms and phrases mentioned below shall have the following meaning: (a) Low or moderate income families or individuals means those who have income within the limits established by the Secretary of Housing through regulations in order to participate in the Program. (b) Adjusted monthly income means one twelfth (1/12) of the total annual income of the person or family after deducting the credits provided in this Act. Submitted into the public record in connection wit items on 'J Walter Foernan Cihl Clerk '� _ �' k, (c) New construction means all housing whose construction commences after the Subsidy Program is approved. (d) Existing houses means all houses already constructed on the date of Department of Housing deem! created by virtue of this Act. approval of this Act, acceptable under the that the Program Section 3.- The Secretary of Housing is hereby authorized to create a program to subsidize the monthly mortgage payment and part of the down payment, of low or moderate -income families or individuals through the Housing Bank and Finance Agency of Puerto Rico to help low or moderate -income families or individuals to acquire newly constructed or existing homes located in projects approved by the Department of Housing or its attached bodies. Section 4.- The subsidy authorized by this Act shall not be available for any dwelling unless the project in which it is located, or the dwelling itself, has been constructed within the parameters established by the Department of Housing and the purchase price cannot exceed the limit established from time to time by the Secretary of Housing. The existing housing projects shall be approved by the Department of Housing and'the limitations of the purchase price mentioned above shall apply. Section 5.- The subsidy shall consist of reducing the corresponding monthly payment and the down payment that the low or moderate -income family or individual must pay. The Submitted into the public record in connection vdth item ,3M_ on �.!q6 Walter Focman City 9 r -- 1 9 1 A k-- -4- oecretary of Housing shall determine the subsidy that the beneficiary will receive depending on the family's or individual's income and the family composition, through regulations. Section 6.- The adjusted monthly income shall be computed at the time the rate of interest corresponding to the family or individual is determined, and it shall be equal to ne twelfth (1/12) of the total annual family income after subtracting the following credits: 1. 10% of the annual gross income as a fixed deduction. 2. Five hundred dollars ($500) for each non -working dependent under the age of 21, or person over 65 years of age or a disabled person who has been certified as such by a physician authorized to practice as such in Puerto Rico. Section 7.- To determine the rate of interest that the beneficiary shall pay, the Housing Bank and Finance Agency of Puerto Rico or a mortgagee participating in the Program, shall obtain evidence of the income and the family composition of the applicant. Section 8.- Once the corresponding subsidy is granted,• the i same shall not be readjusted. i Section 9.- The beneficiary shall keep up to date the corresponding share of the monthly payments in order to continue benefitting from the subsidy granted under this Act. Submitted into the public record in connection with item ,emu on �j,'0 W •�� Walter Foa man City cleat( 9 6 — 1913 k, it .yi -5- the loan is in arrears and the beneficiary decides to bring it up to date, the subsidy for the months in arrears shall be contributed. Section 10.- The Secretary of Housing shall adopt such regulations that are necessary and consistent with the purposes of this Act and which shall have force of law once promulgated pursuant to Act No. 170 of August 12, 1988 as amended. Section ll.- The following conditions shall be stated in the deed as restrictive conditions and shall constitute a real lien on the property: a) The beneficiary shall be bound to reimburse to the Housing Bank and Finance Agency of Puerto Rico, the total or a portion of the subsidy received under this Act, in the event he/she decides to sell, barter, bequest or otherwise convey the property within a period of six (6) years from the date the subsidy is granted, pursuant to the following table: If the conveyance occurs during the: First and•Second Year Third Year Fourth Year Fifth Year Sixth Year Amount of subsidy to be reimbursed: 100% 80% 60% 40% 20% Submitted into the public record in connection with item on 6 Walter Foem n D"" Cfs}r'.( 9G)- 19 1, 1 k�- -6- [f the beneficiary of the Program dies, his forced heirs shall not be bound to comply with the stated reimbursement if the property had been legitimately conveyed to them by testamentary or intestate succession. If the heirs became owners of the property within the 6-year period mentioned above, and within said period, decide to sell, barter, bequest or otherwise convey the property, they shall be bound to make the reimbursement as stated above. When a co-owner beneficiary of the Program decides to sell, barter or otherwise convey his/her share in the real property to another co-owner, he/she shall be bound to reimburse that portion of the subsidy corresponding to his/her share, applying_ the percentages indicated in this Section. In case of divorce, the Secretary of Housing shall provide through regulations the criteria to be used to determine if the separated spouse will have to reimburse the subsidy. If the subsidy reimbursement is required, it shall have.to be made prior to, or simultaneously with the juridical procedure that will give rise to the transfer of ownership, it being essential and indispensable that the Housing Bank and Finance Agency of Puerto Rico appears in the documents conveying ownership, for the purpose of giving consent and releasing the property from the lien, once the reimbursement is made. Submitted into the public record in connection with item LL_ on 17_10_nl 6 Waiter f=oeman Cit; Glerft 96- 191.1 MA -7- b) The beneficiary shall not lease the property nor use it for any purpose other than as his permanent domicile. c) The property shall not be mortgaged without the prior written consent of the Housing Bank and Finance Agency of Puerto Rico, and shall be restricted to those financing or lending institutions approved by the Bank. The restrictive conditions consigned herein shall exist as long as the mortgage is in force, subject to what is established in subsection (a) of this Section. Section 12. Noncompliance of the restrictive conditions in Section 11, will entail the suspension of the subsidy payments and the beneficiary shall be bound to reimburse the total amount of the subsidy received to the Housing Bank and Finance Agency of Puerto Rico, except as otherwise provided for the subsidy reimbursement in case of divorce, and when the property is conveyed within the six (6)-year period, in which case the stated percentages will apply. Section 13.- The Housing Bank and Finance Agency of Puerto Rico or the mortgagee participating in the Program shall evaluate subsequent buyers to determine if they qualify to receive the benefits provided in this Act and in' the regulations adopted for its implementation. The mortgage shall be assumed only when the subsequent buyer is eligible for a subsidy equal to or less than that of the original beneficiary. Submitted into the public record in connection with item .S_ on -$' - 44 Walter Forman City Clerl; --ti dl -8- Section 14.- The deeds transferring ownership, as well as the deed creating the mortgage, originated from the first sale of the houses built under this Act, shall be recordable in the Property Registry free from the payment of fees provided by the Notarial Act and by the act that establishes the fees of the Property Registry. Section 15.- The subsidized properties under this Act shall be exempt from the payment of property taxes as long as they are occupied by the original beneficiary, his/her forced heirs or a subsequent occupant approved by the Housing Bank and Finance Agency of Puerto Rico. Section 16.- The resources to finance the Program creat-ecl by virtue of this Act, shall arise from the savings generated by the refinancing of the bonds issued in 1986 by the Housing Bank and Finance Agency of Puerto Rico, to meet the obligations of the subsidy prepayment, pursuant to Act No. 115 of July 11, 1986 as amended, and those obligations contracted under the Interim Loan Insurance Program. Section 17.- This Act shall take effect immediately after its approval, except for the provisions include in Section 2 concerning the promulgation of the Regulations, which shall take effect ninety (90) days after the approval of this Act. Submitted into the public record in connection with item &!!-_ on -3L' I � S Walta!- t,o(�ma.n 96- 191,1 kr 0g-gS 1 1 : 1 6 FROM: ASUP.lTOS LEG I SLAT 1 VOS ID, SOS7237106 ASnN',131_IA LEG TIVA PAGE 6 `10 SFSION ORD'NARIA Res. Coni. Num. 11-11 (R. C. del S. 1309). egc- (Aprobadae en ` r � d�7��-�'� de 19 RESOLUCION CONJUNTA Para autorizar at Banco y Agencia de Financiamiento de la Vivienda a tomar dinero a pr6stamo del Banco Gubernamenta.1 de Fomento para proveer los Tondos necesarios para el desarrollo del Programa de Subsidio para Vivienda de Interes Social creado mediante la Ley Mm. 124 de 10 de diciembre de 1993; y para autorizar al Secretario del Departamento de Hacienda a realizar anticipos al Banco y Agencia de Financiamiento de la Vivienda de fondos no comprometidos del Tesoro Estatal para cumplir con los prop6sitos de esta Resoluci6n Conjunta. Resu6lvese por la Asamblea Legislativa de Puerto Rico: Secci6n 1.- Se autoriza at Banco y Agencia de Financiamiento de la Vivienda a tomar dinero a pr6stamo del Banco Gubernamental de Fomento para proveer los fondos necesarios para of desarrollo del Programa de Subsidio de Viviendas de Inter6s Social creado mediante la Ley Ndm. 124 de 10 de diciembre de 1993 y se faculta al Banco Gubernamental de Fomento para otorgar pr6stamos al Banco y Agencia de Financiamiento de la Vivienda bajo las condiciones que acuerden entre si incluyendo el otorgamlento de garantfas hasta la cantidad de $17,000,000 y por un tdrmino de dos (2) anos. El Secretario de Hacienda debera garantizar el pago del principal a intereses de los prdstamos que tome o haya tomado el Banco y Agencia de Financiarniento de la Vivienda, asf como cualquier adelanto de dinero mediante pagar6s, notas, obligaciones de capital, bons u otros instrumentos de deuda emitidos par este Banco. Secci6n 2.- Cuando el Presidente del Banco y Agencia de Financiamiento de la Vivienda certifique que Este no cuenta con fondos suficientes para honrar un pr6stamo, le debera notificar la certitificaci6n al Secretario de Hacienda, que queda por la presente Resolueibn Conjunta autorizado para desembolsar del Fondo General, con previa notificaci6n at Director de la Oficina do Presupuesto y Gerencia, los dineros requeridos para pagan el principal a intereses de dicho pr6stamo. Las cantidades tomadas, prestadas o mediante anticipos, mas los intereses respectivos, serin honrados con una asignaci6n de fondos a incluirse en el presupuesto del segundo afio fiscal siguiente al ano en que se concedleron dichos prdstamos o anticipos. Secci6n 3.- Esta Resoluci6n Conjunta comenzara a regir el fro. de julio de 1995. .................................. Presidente de la Camara .................................. Presidente del Senado Submitted into the public record in connection vriih _item_ onIL! 14 44 Welter Foes, m City Cierk 963- 191.1 k_- JAN-20-94 to It FROM ASUNTOS LECISLATIVOS to. 8GS7237106 I_ r,5A�.10LEA �04 `S ON LECISLATIVA ORO NARIA ( l?. del S. 392) LEY Num. 9� (Aproboda en 4. de fie 19 LEY PAGQ Para enmendar los Incisor (a), (d) y (f) del Articulo 2; enmendar los Incisor, (a) y (d) del Articulo 4; enmendar el Inciso (e) del Articulo 5; enmendar el ultimo pdrrafo del Articulo 8; y para enmendar el Articulo 10 de la Ley Niunero 47 de 26 de junio de 1987, segitn enmendada, denominada "Ley de Coparticipaci6n del Sector Publico y Privado para la Nueva Operacidn de Vivienda", a los fines de establecer en sesenta mil (60,000) dblares el precio mdximo de venta de las unidades de vivienda de interes social; establecer que el Secretario de la Vivienda tendrA la responsabilidad de implantar la fare operacional del programa creado pur esta Ley; establecer lab normas y criterios para disponer por reglanento at precio de venta de las unidades de vivienda de interes social; aumentar la exenci6n sobre los ingresos derivados de la venta de viviendas a un mAximo de cinco mil (5,000) ddlares; establecer los asuntos que serAn reglamentados en conjunto por Los Secretarios do la Vivienda, de Hacienda y el Presidente del Banco Gubernamental de Fomento; y para ampliar el termino de vigencia del programa creado por virtud de las disposiciones de esta Ley, EXPOSICION DE MOTIVOS Mediante la Ley Niun. 47 de 26 de junio de 1987, se crew un programa de coparticipaci6n del sector piiblico y privado para el desarrollo de viviendas y su,venta o alquiler a familial de ingresos ba,jos o mo erados. E1 programa tiene como objetivo fomentar la inversL6n de capital en el desarrollo de proyectos de vivienda de interes social en cantidad adecuada para atender la demanda existents. Mediante la concesi6h de ciertos incentivos a los duedos de tales proyectos, el gobierno pretende estimular al sector privado de la construcci6n para que invierta su propio capital y asuma los riesgos de la empress. El gobierno, dentro del marco legal adecuado y como producto de la colaboraci6n entre la industria privada y el Estado, logra que un sector irnportante de nuestra sociedad pueda tener a su alcance alternatives para poseer un hogar propio. Debido a los factores econdmicos a inflacionarios que afectan los costos de la construcci6n en Puerto Rico, en el ano 1989 se enmend6 la Ley Numero 47 para' aumentar a treinta y cinco mil (35,000) dblares el precio de venta de las viviendas cubiertas por este programa. En el 1992 fue necesario enmendar la ley nuevamente Para aumentar dicho precio'a cuarenta mil (40.000) dolares. No obstante, to,mando en consideraci6n que los altos cubt.us de eun5truccida ciertamente afectan y limitan la partiei aci6n de la empresa privada en dicho programa, esta Asamblea Legislativa considers adecuado aumentar cl precio mAximo de vents de dichas viviendas a la cantidad de sesenta mil (60,000) d61ares. A estos fines, se establece que se dispondran por reglAnipnU) la, etipecif"Icticiunes y precio de una unidad bAsica de vivienda de interes social. Asi mismo, se determinarA por municipio Cl precio mAximo de dichas unidadcs utilixando entre otro.m, pArAmetri-j-j y Iurtctas generalmente aceptadas per la industria de la construcclda. Se dispone adcmds, quc cl Secretario de la Vivienda tendrA la •responsabilidad de impplanter la rasp nprrac;oual del prugrtsma de cuparticipaci6n creado por la referida Ley Ntimero 47. Con csta mcdida sc podrA generar mayor partieipaci6n del sector privado y suplir la demanda de fftnliliA:s fie. ingrews muderados que reclaman acceso a una vivienda adecuada. Esta Ley tambien propone extend%!r tit L-°rnunlj del programa para poder cualiticar para to$ bencflclos e tncuntivuy cuntributivoe que proven el estatuto vigcnte. F:cu, permitirA PVAlttrr aciccuadumente y en un termtnn rntnnAhlr-, e�I retiitlt,.i,t.t dp! its etmpha,:16n 11►' luj Submitted into the public record in connection with item �_ on-ey►_c;6 Walter Focrnari City Cinrl, 96'- 191.1 k> JAN-29-94 10 . 72 FROM ASUNTOS L EC t SLAT t VOS t o , 88972371 O6 PAGE parAmetros establecidos pars viviendas de interds social y la acogida de este programa par los desarroI!adores y por las familias de ingresos moderados. >sta lelFislacidn pone en ejecucidn medidas consideradas dentro de las prioridades programducas del gobierno can el. propdsito de establecer un plan de estimulo pars la construccibn de nueva vivienda, a los fines de que las familias de ingresos moderados de Puerto Rico puedan ser duenas de su proplo hogar. Decrdtase por la Asamblea Legislativa de Puerto Rico: Secci6n 1.- Se enmiendan los Incisos (a), (d) y (f) del Articulo 2 de la Ley Nfim. 47 de 26 de junio de 1987, segun enmendada, para que se lean Como sigue: "Articulo 2.- Defialciones.- A los efectos de esta Ley, los siguientes tdrminos tendrAn el significado que a continuaci6n se expresa: (a) "Administrador del ProVama" significa el Secretario de la Vivienda de Puerto Rico, quien tendril la responsabllidad de implantar la Ease operacional de esta Ley. (b) ..... (d) "Familia de ingresos bajos o moderados" slgnifica toda persona que no posea una vivienda propia y cuyo ingreso anual no exceda a establecido para familias de -in esos bajos o moderados por los programas de vivienda de interds social del Gobierno de Puerto Rico o el Gobierno de los Estados Unidos de Amdrica. , (e) (f) "Vivienda de interds social" significa, en el caso de venta, aquellas unidades de vivienda cuyo precio total de venta no exceda de sesenta mil (60,000) d6lares, A estos fines, se estableceran por reglamento las especificaciones y precios de la unidad biLsica para vivienda de interds social. Asi mismo se determinard el precio de yenta mdxim�o de. la unidad b6sica por municipio, tomando en consideracidn su localizaci6n, el montd* mAximo de la hipoteca asegurable por la "Federal Housing Administration (F'HA)" y normal y parAmetros generalmente aceptados en la industria de la construccibn. En la determinacidn del precio total de vents, se podrfi.n tomar en consideraci6n mejoras a las especiiicaciones de la unidad bbsica de vivienda, en cuyo caso, se podra autorizar un increments en el precio de vents que no excederd del quince por ciento (15%) del precio de la unidad bbsica. No obstante, en ningaa caso el precio total de venta de una vivienda de interds social podrb exceder el m&ximo que se establece en este Inciso. En el caso de proyectos multi -fami Hares de vivienda dedicados al alquiler, 'vivienda de interds social' significa la estructura sencilla, en hileras, de acceso peatonal y multipisos, destinada a vivienda de familias de ingresos medios, moderados y bajos, cuando son fomeatados o desarrollados por el Departamento de la Vivienda a sus organismos operacionales. Tambidn [as desarrolladas par las empresas privadas para familias de ingresos medios, moderados yY bajos, cuando las familias se benefician directs o indirectamente de los programas de; asistencia de los Gobiernos Estatal n Federal. (g) ......, Seccirin 2.- Se enmiendan los Incises (a) y (d) del Articulo 4 de la Ley Niue. 47 de 26 de junjo de 1987, segun enmendada, para que se lea Como siglie- Submitted into the public record in conngction with item 34k on —k—OkA Walter Fv-,r-::nan � ct;, t;i�,1 6 - 191.1 k, JAM-2e-94 16 � 72 FROM, ASUNTOS U6a t SLAT t VOs t O + e097237 1 043 PACp. "Articulo 4.• Ezenci6n de Contribuci6n sabre Ingresos Derivados de la Venta de Viviendas.- Los inFresos que reciba el dueno de un proyecto de vivienda de interes social de uueva construcc16n a rehabilitado par concepto de la vents de Las mismas, estaren exentos del pago de la contribuci6a sabre ingresos, siernpre que: (a) La construccibn a rehabilitacidn de las unidades de vivienda para la vents haya comenzado con posterioridad a la fecha de vigencia de esta Ley y antes del Iro de julio de 1998. (b) ..... (d) Los ingresos sabre las que se reclama la exenci6n contributive sean producto de garlancias que no excedan de un nnAxLmo de cinco mil (5,000) d6lares par unidad de vivienda, derivadas de la vents de unidades de vivienda de interes social y que tales ganancias tengan relaci6n directs. excluaivamente con el proyecto de vivienda de interds social al que se atribuyen dichos ingresos. (e) ..... Secci6n 3.- Se enmienda el Inciso (e) del Articulo 5 de la Ley N[Lm. 47 de 26 de junio de 1987, segan enmendada, para que se lea Como sigue: "Articulo 5.- Exenci6n de Contribucidn sabre Ingresos Derivados del Alquiler de Viviendas.- - EstarAn exentos del pago de la contribuci6n sobre ingresos, X hasta un diez par cientb (10%) de rendimiento sabre el capital invertido on la adquisici6a y la construccibn o rehabilitaci6n de la ,propiedad, las ingresos que recibe el dueno de un proyecto multifamiliar de interes social dedieado al alquiler, siempre y cuando: (a) ..... (e) La construccibn o rehabilitacida de las unidades de vivienda a que se atribuyal los ingresas par concepto de algviler haya comenzado despu6s de to aprobaci6n de esta Ley ,y antes del Iro. de julio de 1998, M Seecidn 4.- Se enmienda el ultimo parrafo del Articulo 8 de la Ley Nu.m. 47 de 26 de junia de 1987, segtin enmendada, para que se lea coma sigue: "Articulo 8.- Vents de Terrenos Riblicos para Viviends de interes Social, Se faculta a Las agencias del Gobierno del Estado Libre Asoci ado de Puerto Rico para vender, previa aprobaci6n de la Junta de Planifi,cacidn, cualesquiera terrenos de su propiedad a cualguier interes on Los tnismos a personas naturales y juridicas sujeto a las siguientes condictones: (R1..... Submitted into the public record in connection with (e) item 204AL— on Walter Fo rman 96- 191.1 k-- JAN-19-94 10.33 FROM, ASUNTO9 LBGISLATIVOS to- e10S7237106 PAGE En cada transaccidn de venta de terrenos, el Secretario de la Vivienda, el Secretarlo de Hacienda y el Presidents del Banco Gubernamental de Fomento, conjuntamente, $e asegurargn deque se constituya una obligacion subordinada pur la diferencia entre el valor de tasaci6n y el precio convenido de vents para asegurar que, en easo de vents posterior con ganancias de las unidades ind►viduales o de venta y cambio de uno de los proyectos do viviendas para alquiler dentro de los periodos que por reglamento se establezcan, el valor diferido revierta al tesoro publico y que as actividades de construccibn de los proyectos de vivienda a ser dosarrollados se inicien despuds de la aprobaci6n de esta ley y antes del 1ro de julio de 1998." 5ecci6n 5.- Se enmienda el Articulo 10 de la Ley N(un. 47 de 26 de junio de 1987, segiin enmendada, para que se lea como sigue: "Articulo 10.- Reglamentos El Secretario de la Vivienda, el Secretario de Hacienda y el Presidents del Banco Gubernamental de Fomento en conjunto, establece'rin por reglamento las especificaciones y el precio de venta de las unidades de vivienda de-interds social de conformidad a las disposiciones del Articulo 2(f); las escalas aplicables a las exeneiones contributivas, de coaformidad a to dispuesto on los Articulas 4 y 5; asi como, Jos criterios, procedimientos y docurnentos que se requirirdin para determinar si el duefio de un proyecto cualifica pars acogerse a las exenciones contributivas que se establecen en esta Ley. Asi mismo, previa aprobaci6n del Gobernador de Puerto Rico, adoptar5n en conjunto un reglamento para establecer los terminos y condiciones bajo los cuales se e£ectuardn las tmnsaciones de vent& de terrenos publicos autorizadas en esta Ley. En todos los demds caws, el Secretario de la Vivienda, el Secretario de Hacienda y el Presidents del Banco Gubernamental de Fomento tendrdn facultad para aprobar los reglamentos necesarios para poser en ejecuddn aquellos aspectos de esta Ley que sean de su competencia. Secci6n 6.- Esta ley entrard en vigor inmediatamente despuds de su aprobaci6n. Presidente de la Camara Prestclenle del Senado Submitted into the public record in 3- connection with item on 1 Walter Foernan 4 City Glr r' (Sustitutivo a los P. del S. 1263, 1264 y 1265) LEY Para establecer un Programa de Coparticipaci6n del Sector Publico y Privado para la Nueva Operaci6n de Vivienda. a fin de proveer vivienda propia o de alquiler a familias de ingresos bajos o moderados: definir sus prop6sitos y mecanismos de funcionamiento; eximir del pago de contribuciones los ingresos derivados de la venta o alquiler de viviendas a interes o tal; eximir la pro piedad multifamiliar de interes soda e _e contribuciones sobre [a propiedad: establecer los tdrminos y requisitos Para disfrutar dichas exenciones; facultar a los Secretarios de Hacienda, de la Vivienda y al Presidente del Banco Gnbernamental de Fomento Para adoptar los reglamen- tos necesarios a fin de aplicar esta ley: autorizar la venta a precio razonable de terrenos del Estado que no tengan usos pit icos parse esarro o e proyectos de vivien a e interes soc►a y ijar los requisitos de venta. EYPOSICION DE MOTIVOS Durante los iiltimos afios, en los passes mds industrializados del mundo se ha estado desarrollando una corriente de mutua y estrecha colaboraci6n entre el sector publico y el sector Privado, con el objetivo de emprender tareas de gran interes social que ni la empresa privada. ni el gobierno han podido llevar a Cabo actuando separadamente el uno del otro.'Jap6n es uno de los mejores ejem- plos del exito alcanzado mediante esa, coparticipaci6n entre el sector publico y el privado. Alemania Occidental y Estados Unidos tambien han integrado esta corriente de mutua colaboraci6n en algunos de sus programas y actividades, alcanzando mWtiples logros de interes social para sus respectivas comunidades. E1 Gobierno de Puerto Rico ya ha incorporado esa tendencia a la atenci6n de diversos asuntos publicos. Estas primeras experien- cias de coparticipacidn entre el sector publico y el privado han demostrado que existe el deseo a interes de que se amplie esta corriente de colaboraci6n, cooperaci6n y esfuerzo conjunto para extenderla a la atenci6n y solution de otros problemas apremiantes de nuestro pueblo, en esta instancia, particularmente el de la falta de vivienda para familias de ingresos bajos y moderados. Submitted into the public record in connection with item ._ an ' -t "qb Walter Foeman City Cleric 9 F _ 191, i A tenor con ese objetivo y como politics publica debemos esta- blecer las guias necesarias para un programa de coparticipaci6n del Sector Publico y Privado para el desarrollo de proyectos de vivienda de interds social. Mediante este programa se podria esti- mular a la empresa privada para construir y rehabilitar proyectos de viviendas pars la vents o alquiler a familias de ingresos bajos o moderados al menor costo posible. Por su parte, el Gobierno conce- deria a los dueiios de tales proyectos una serie de incentives que estimulen y canalicen su inversi6n privada y esfuerzo. De esta forma puede lograrse un precio de venta o alquiler que estd al alcance de nuestras familias de menos recursos econ6micos y, asimismo, un aumento en el inventario de viviendas de cariicter social, sino suficiente, al menos adecuado, para, en alguna medida atender la demanda actualmente existente. Como parte de tales incentivos se concederia exencion contributiva sobre los ing er os derivados en la venta o alquiler de tales vivien-das. Tam i�6`dn -se eximiria del page a con ri uciones so re propie a a los proyectos mu t ami tares a nueva cons ruccion o que se re a i iten para colocar os en el mares o e a qu er como vivien as a ecu as para fam> gas a ingr—es os bajos o m Rera os. Otro de los mecanismos que contemplaria este programs para lograr el desarrollo de viviendas de inter6s social, es la venta a precios razonables de terrenos del Gobierno de Puerto Rico, que no tengan usos piiblicos, siempre que sean aptos y se dediquen al desa- rrollo de tales viviendas. Con ello podrian reducirse los costos de desarrollo de proyectos de viviendas y consecuentemente el precio de venta o alquiler de cada unidad. Con esta ley se conjugan tres vertientes: el gobierno, que fija las metas dentro de un marco legal apropiado: el sector privado, que ejecuta las tareas proporcionando su conocimiento, invirtiendo su propio capital y corriendo con los riesgos de la empresa y nuestras families mis necesitadas que obtienen el fruto final de esa estrecha colaboracidn a iniciativa conjunta. Decritase por la Asamblea Legislativa de Puerto Rico; Articulo 1.—Titulo de la Ley. Esta ley se conocerA como `Ley de Coparticipaci6n del Sector Publico y Privado para la Nueva Operaci6n de Vivienda". Articulo 2.—Definiciones. A los efectos de esta ley, los siguientes t6rminos tendrin el significado que a ,ontinuaci6n se express: Submitted into the public record in connection with item _1 L4 on �+�'�� Walter F oemjen 9 6 - 191.1 (a) "Administrador del Programa", significa la unidad operacional de una agencia a la que los Secretarios de la Vivienda y de Hacienda y el Presidente del Banco Guberna- mental de Fomento, de comun acuerdu, deleguen la responsabi- lidad de implementar la fase operacional de esta ley. (b) "Agencia", significa cualquier departamento, adminis- traci6n, negociado, oficina, instrumentalidad o corporacidn publica del Gobierno del Estado Libre Asociado de Puerto Rico, excepto la Autoridad de Tierras. (c) "Duei9o", significa cualquier persona natural o juridica que sea propietario en pleno dominio de un proyecto de vivienda pars la venta o alquiler a personas o familias de ingresos bajoso moderados. (d) "Familia de Ingresos Bajos o Moderados", significa toda persona que no posea una vivienda propia y cuyo ingreso bruto anual maximo`no exceda del veinte por ciento (20%) de laobliga- ci6n hipotecaria y gastos normales de mantenimiento a que se obliga cuando compra una vivienda, o que, en el caso de alquiler de vivienda, su ingreso mAximo anual sea igual al establecido Para familias de ingresos bajos y moderados por los programas de vivienda publica del Estado Libre Asociado de Puerto Rico. (e) "Proyecto Multifamiliar", significa cualquier edifica- ci6n o grupo de edificaciones que tenga no menos de diez (10) unidades de vivienda, independientes unas de otras, pero propie- dad de un mismo dueilo. (f) "Vivienda de Interes Social", significa en el caso de venta, aquellas unidades de vivienda cuyo precio total de venta no exceda de treinta mil (30.000) d6lares; disponibndose que, cuan o para proveer facilidades sanitarias, el dueho haya tenido que incurrir en gastos de mejoras a plantas de trata- miento olternas o sustitutas que viabilicen la construcci6n o rehabilitaci6n del proyecto de vivienda de que se trate, se excluiri hasta un diez por ciento (10%) maximo del c6mputodel precio total de venta antes establecido, aquella cantidad atri- buible a la unidad de vivienda comocostodirectode lasobrasde facilidades sanitarias. En el caso de proyectos multifamiliares de vivienda dedicados al alquiler, "vivienda de inter6s social", significa aquellas unidades dedicados para use residential de familias de ingresos bajos o moderados mediante el pago de un canon de arrendamiento. (g) "Unidad de Vivienda", significa toda estructura apta para la convivencia familiar y que reuna los requisitos de cons - Submitted into the public record in connection with 1tem3 , -_ on 3L--O-1 9. -- Og4p Walter 1 room n City CI - A, P _ 191,1 k, trucci6n de una vivienda adecuada para cuya construccion o rehabilitaci6n deber:i contar con todos los endosos, aprobacio- nes y permisos exigidos por las leyes y reglamentos aplicables. Articulo 3.—Creaci6n y Prop6sitos del Programa. Se crea el "Programs de Coparticipaci6n del Sector Publico y Privado para la Nueva Operaci6n de Vivienda", con el prop6sito de fomentar y promover el desarrollo y rehabilitaci6n de unidades de vivienda para la vents o alquiler a familias de ingresos bajos o moderados. Es politics publica del Estado Libre Asociado de Puerto Rico garantizar, en ]a medida que los recursos y esfuerzos del Gobierno to permitan, que cad& familia puertorriqueffa tenga la oportunidad de disfrutar de una vivienda adecuada. De acuerdo a esta politics publica, la presente ley tiene el propbsito de fomentar y lograr una estrecha colaboraci6n entre el sector gubernamental y el sector privado que conduzca a la atenci6n y soluci6n en alguna medida y a la mayor brevedad posible, del problema de escasez de vivienda que confrontan las familias de ingresos bajos o moderados. Mediante el Programa que se crea en esta ley, las empresas a individuos privados invertirin el capital y asumiran Ios riesgos de tal inversi6n, mientras el Gobierno del Estado Libre Asociado de Puerto Rico les conceder. a 6stos, como estimulo a su inversi6n y riesgos, unos incentivos traducidos en exenciones sobre determi- nadas contribuciones, ast como la oportunidad para adquirir, a un precio razonable, terrenos propiedad del Estado que no tengan usos pablicos siempre y cuando los dediquen al desarrollo de proyectos de unidades de vivienda de inter6s social pars venderlas o alqui- ]arlas a dichas familias. Articulo 4.—Exenci6n de Contribuci6n Sobre Ingresos Deriva- dos de la Venta de Viviendas. Los ingresos que reciba el duefio de un proyecto de vivienda de interes social de nueva construcci6n o rehabilitado por concepto de to venta de las mismas, estara.n exentos del pago de la contribuci6n sobre ingresos, siempre-que: (a) La construcci6n o rehabilitaci6n de las unidades de vivienda para la vents haya comenzado con posterioridad a la fecha de vigencia de esta ley y antes del lro. de enero de 1990. (b) Presente, previo al comienzo de las obras de construe- ci6n o rehabilitaci6n, un desglose por partidas de costos debida- mente aprobado por el Administrador del Programa. (c) El comprador de la unidad de vivienda sea una familia de ingresos bajos o m,)r?erados segun definida,en esta ley y que Submitted into the public record in connection with item _ 3+0! on 4- Ok Walter 1=uer, an Cily Died( k, l sea certificada como elegible por el acreedor hipotecario que ori- gine el financiamiento hipotecario permanente de la vivienda. (d) Los ingresos sobre los que se reclama la exenci6n contri- butive sea producto de ganancias que no excedan de un maximo de tres mil (3,000) d6lares por unidad de vivienda, derivadas de la venta de unidades de viviendas de interes social y que tales ganancias tengan relation directs exclusivamente con el proyecto de vivienda de interes social al que se atribuyen los dichos ingresos. (e) El dueiio demuestre, a la satisfacci6n del Secretario de Hacienda, que al momento de formalizar la yenta, la unidad de vivienda a la que se atribuyen los ingresos, no tenia gravamen o carga contributiva. Articulo 5.—Exenci6n de Contribuci6n Sobre Ingresos Deriva- dos del Alquiler de Viviendas. - Estardn exentos del pago de la contribuci6n sobre ingresos y hasta un diez por ciento (10%) de rendimiento sobre el capiLa�,.: invertido en la adgtrisici6n y la construction o rehabilitaci6n de la --- propiedad, los ingresos que recibe el dueAo de an proyecto multi - familiar de interes social dedicado al alquiler, siempre y cuando: (a) Demuestre, mediante la presentaci6n de los documentos y records que por reglamento se requieran, que el capital inver- tido en la construcci6n o la rehabilitaci6n del proyecto multi - familiar, segun sea el caso, es producto de una transacci6n bona fide. (b) E1 canon de arrendamiento de las unidades de vivienda alquiladas no exceda la cantidad que, el Administrador del Programa determine es adecuado Para que el dueflo de las unidades de vivienda cubra los gastos de administraci6n y mantenimiento de la propiedad alquilada, reciba un rendi- miento sobre su inversi6n de capital y cubra sus demis obliga- ciones como propietario, segun los parimetros que por regla- mento se establezean. (c) Los ingresos sobre los que se reclame exenci6n contribu- tive se deriven del canon de arrendamiento pagado por familias de ingresos bajos o moderados. (d) La unidad alquilada dentro del proyecto multifamiliar de vivienda o la familia que ocupe dicha unidad no reciba sub- venci6n directs para el pago del canon de arrendamiento del Gobierno del Estado Libre Asociado de Puerto Rico o del Gobierno de los Estados Unidos de America. Submitted into the public record in connection witl, item .,tea _ on Walter l=oJnan City Cled" 9 r — 1913 i (e) La construccidn o rehabilitacidn de las unidades de vivienda a que se atribuyan los ingresos por concepto de alquiler haya comenzado despues de la aprobacidn de esta ley y antes del 1 de enero de 1990. La exencidn del pago de la contribucidn sobre ingresos con- cedida en este articulo podra ser reclamada por el dueiio mien- tras las unidades de vivienda esten ocupadas por personas de ingresos bajos o moderados y por un termino no mayor de quince (15) afts, contados a partir de la fecha de aprobacidn de exencidn contributiva que segun esta ley deberan solicitarse al Secretario de Hacienda. Articulo 6.—Exenci6n de Contribucidn Sobre Propiedad Dedi- cada al Alquiler. Estaran exentos de pago de la contribucidn sobre la propiedad las unidades de vivienda de proyectos multifamiliares que se alquilen a familias de ingresos bajos o moderados, sujeto a que: (a) Se cumpla con los requisitos establecidos en los Incisos (b), (d) y (e) del Articulo 5 de esta ley. (b) El canon de arrendamiento de cada unidad de vivienda refleje una reduccidn igual al monto total de la contribucidn sobre la propiedad que estaria obligado a pagar el dueclo, de no aplicar la exencidn contributiva aqui provista. La exencidn contributiva concedida en este articulo estari en vigor mientras las unidades de vivienda sobre las que se reclame esten ocupadas por familias de ingresos bajos o mode- rados y por un t6rmino de tiempo no mayor de quince (15) ailos, comenzado a partir del 1 de enero del ailo siguiente a la fecha de ocupacidn de la unidad de vivienda por una familia de ingresos bajos o moderados. Anualmente el Secretario de la Vivienda certificgra' al Secretario de Hacienda si las familias que ocupan las unidades de vivienda sobre los que se reclama la exencidn contributiva establecida en este articulo son elegibles como familias de ingresos bajos o moderados. Articulo 7.—Procedimiento y Condiciones para Exencidn. Todo dueAo que construya o rehabilite viviendas de interes social pars la venta o arrendamiento a personas de ingresos bajos o moderados y que dPsee acogerse a las exenciones contributivas esta- blecidas en los Articulos 4. 5 y 6 de esta ley. deberA presentar ante el Secretario de Hacienda una solicitud de exencion aeompafiada de los documentos a informacidn que por rez!,:^-.-nto se requieran. El Secretario de Hacienda debera actuar so::;- . ... solicitud dentro de Submitted into the public record in connection With item .k_ on I!11I- fir Walter 1=c:crY:an C9 6 — 191.1 ity' GJC'O; k:-- N los sesenta (60) dias contados a partir de la fecha en que @sta haya sido sometida. Todo duerio que solicite acogerse a los beneficios de esta ley deberi estar al dia en el pago de todas las contribuciones impuestas por las leyes del Estado Libre Asociado de Puerto Rico, incluyendo aquollas en que acttie como agente retenedor y debert, asimismo, mantenerse al dia en el pago de tales contribuciones por el tdrm ino que disfrute de los benefcios que se conceden en esta ley. Articulo 8---Venta de Terren Publicos para Vivienda de Interes Social. Se faculta a las agencias del Gobierno del Estado Libre Asociado de Puerto Rico para vender, previa aprobacidn de la Junta de Plani- ficaci6n, a precios raz ables cualesquiera terrenos de su propie- dad, o cualquier interes en los mismos, a personas naturales y juridicas, sujeto a las siguientes condiciones: (a) Los terrenos objetos de toda venta estuvieren incluidos en el inventario de propiedades del Gobierno de Puerto Rico al 1 de enero de 1987. (b) Sean terrenos aptos para el desarrollo de unidades de viviendas segun los reglamentos de laJunta de Planificacidn de Puerto Rico. (c) Que se trate de terrenos que no sean necesarios para las obras y programas del Gobierno de Puerto Rico, pero si de utili- dad al desarrollo de vivienda de interns social. (d) E1 comprador los dedique al desarrollo de unidades de vivienda de interds social para la vents o alquiler a familias de ingresos bajos o moderados. (e) El precio de venta serf el valor en el mercado que mediante tasacidn al efecto real ice el Secretario de Hacienda. Si la viabilidad econ6mica del proyecto se ve afectada adversa- mente• por el monto de ester tasacidn, to misma podri ser revisada conjuntamente por los Secretarios de Hacienda y Vivienda y el Presidente del Banco Gubernamental de Fomento; c�isponidn- dose que el valor de tasacion vicidohastaun tr (311j nto de dicho valor"" .L. :p o e1'pcec o f u�a van nnnca serf manor. que el' : , ftisici6initz da mejoras a los terrenos, $e i0wtticibii'itl efeati r la a Mcia que.estk disponiendo. iaWge_f . f En cada transacei6n de venta d tg=enos, el Secretario de la Vivienda, el Secretario de Hacienda y el Presidente del Banco Gubernamentai de Fomento, conjuntamente. se asegurarn de que se constituya una obligaci6n subordinada por la diferencia entre el valor de tasac,ion y el precio conven'.; yenta para Submitted into the public ` record in connection vv .h Item -3` _.._ on �+ --4. 7 F�3 Waiter 1=oernU-;n City Clerk 9 06-- 15 h-I r asegurar que, en caso de venta posterior con ganancias de las unidades individuates o de vents y cambio de uno de los proyec- tos de viviendas Para alquiler dentro de los periodos que por reglamento se establezcan, el valor diferido revierta al tesoro pnblico y que las actividades de construccidn de los proyectos de vivienda a ser desarroilados se inicien despuds de la aprobacidn de esta Ley y antes del 1ro. de enero de 1990. Articulo 9.—Records de Contabilidad. Todo dueho que desee acogerse a los beneficios de esm ley debera llevar una contabilidad completa y detallada, por unidad de vivienda, de todos los ingresos derivados de la venta o alquiier de las mismas, segun sea el caso y de los gastos incurridos en su venta o alquiier. Articulo 10.—Reglamentos. E1 Secretario de Hacienda, el Secretario de la Vivienda y el. Presidente del Banco Gubernamental de Fomento adoptaran las reglas y reglamentos que sean necesarios para la aplicacidn de esta ley, los cuales deberin establecer los criterios, los procedimientos y documentos que se requeriran para determinar si un duedo cualifica para acogerse a las exenciones contributivas dispuestas en esta ley y los procedimientos de revision o reconsid.eracidn en caso de denegacidn de tales exoneraciones contributivas. Asimismo, previa aprobacidn del Gobernador de Puerto Rico. adoptarin un regl4mento para establecer los tdrminos y condicio- nes bajo los cuales se efectuardn las transacciones de venta de terrenos publicos autorizadas en esta ley. Articulo 11.—Informes. Trimestralmente la unidad operacional rend ira un informe a la Asamblea Legislativa sobre las transacciones de vents de terrenos publicos realizados de acuerdo a esta ley y sobre los proyectos de vivienda iniciados o un desarrollo al amparo de la misma. Articulo 12.—Vigencia. Esta Ley entrari en vigor inmediatamente despuds de su apro- bacidn, excepto en cuanto respecta a las exenciones contributivas sobre la propiedad, la coal comenzari a regir a partir del aiio contributivo que comienza el lro. de enero de 1988. ............................ ............................ Presidente del Senad,, Presidente de la Comara SUbmi#ted into the public record in connection with item _ on Walter 8 96" 191.1