House expected to pass bill to streamline process for buying nuisance properties

By THE STAR STAFF

The island House of Representatives was expected on Monday to approve a bill sought by San Juan Mayor Miguel Romero that would streamline the process for private investors to acquire properties classified as public nuisances, provided they certify that the buildings will be restored for affordable or middle-income housing.

House Bill 1005 would amend the Municipal Code by removing the existing one-year delay before an investor may buy a nuisance property that has already been expropriated. The proposal would permit a faster transfer if the purchaser certifies that the property will serve as housing for low-, moderate- or middle-income people or families.

Under the bill, each municipality establishes its own standards through local ordinances, such as market-based pricing and income limits for those eligible to buy rehabilitated properties. Municipal governments would also have to create protections to ensure the homes are used as primary residences by qualifying households.

The Department of Housing was the sole agency to object to the proposal. Earlier this year, former Housing Secretary Ciary Pérez Peña said the bill would weaken current Municipal Code safeguards intended to curb real estate speculation, property accumulation, and improper use of expropriation authority.

Housing officials also warned that the bill could favor investors with greater financial resources at the expense of individual buyers and might allow rehabilitated properties to be turned into short-term rentals or other commercial ventures. They also cautioned that allowing each municipality to set its own rules could create inconsistent standards across Puerto Rico.