He maintains that President Luis Abinader promised an updated rental law.
SANTO DOMINGO.- The Dominican Association of Housing Builders and Developers (Acoprovi) remains hopeful that its observations on the draft Law on Real Estate Rentals and Evictions, which is currently before the Chamber of Deputies, will be taken into account when the bill is taken up again in the current legislature.
This was stated by Annerys Meléndez, president of the entity, highlighting that it is also a promise made by the President of the Republic, Luis Abinader, during the 8th housing roundtable held last year, where the president promised an updated rental law.
“We are hopeful that the Chamber of Deputies will renew its vision and knowledge so that they can review this preliminary draft and also include some fundamental observations that we at Acoprovi have made, which are specifically four,” the businesswoman explained.
Meléndez said that although the proposal expired in the last legislature, there is a promise that it will be put back under review by the Lower House.
The bill was approved for the second time in its first reading on July 25 of this year by the Chamber of Deputies, but its validity expired, so it must be considered again. It was authored by Alfredo Pacheco, a deputy for the Modern Revolutionary Party (PRM) and the current president of the Chamber of Deputies.
“We are hopeful that at any moment we will begin the reviews again and that the points will be included and we can revolutionize the rental market in the Dominican Republic,” Meléndez declared, while answering questions during the forum “Rental Law and Rental Market: A New Real Estate Business Model in the Dominican Republic,” held by that entity last week at a hotel in the Dominican capital.
He stated that during the transition process, after winning the national elections, Abinader reiterated the promise that during his term the country would have a modern rental law.
The points requested
In a letter sent to members of parliament in June of last year, Acoprovi warned that regulating rent increases by law would cause homeowners to set high rental prices when drawing up contracts, "trying to protect themselves from the risk" that the regulations would pose to their finances.
The association responded to a proposal made by the Ministry of Housing, Habitat and Buildings (Mivhed). It argued that high rental prices would not necessarily translate into higher quality housing structures.
Furthermore, the union explained that controlling rent increases through a law limits the right to property, which is enshrined in Article 51 of the Constitution and which states that every person has the right to the enjoyment and disposal of their property.
In the same letter, the builders' association pointed out that Mivhed wants to "over-regulate" aspects such as the content of rental contracts even though jurisprudence, custom and civil law "have resolved a good functioning in this aspect.".
In detail, the special committee of deputies that studied the rental bill gave the freedom for a tenant and a landlord to agree "as they see fit" on the end of a rental contract, while the Mivhed proposes that the deadline for concluding the agreement be communicated three months in advance.
At this point, Acoprovi considers that this aspect limits the contractual freedom of the contracts between the owner and the tenant that Congress "reaffirms with reality and legal awareness".
Transitional housing
The institution also noted the proposal from the Ministry of Housing and Urban Development (MIVHED) to create a fund to provide transitional housing for those who can demonstrate that they cannot afford rent, and considered that the proposal should include limited time periods for residing in the temporary housing.
Acoprovi also clarified that this proposal should be included in a new Housing Law, not in the congressional bill that seeks to regulate rents, since it is the State that is responsible for upholding the constitutional right to decent housing. The Ministry of Housing and Urban Development (MIVHED) is also seeking to establish a program to provide legal support to tenants.
