SANTO DOMINGO. -The Ministry of Housing, Habitat and Buildings (MIVHED) and the Institutionalism and Justice Foundation (FINJUS) sent to the Chamber of Deputies, separately, several changes to the Draft General Law on Rentals of Real Estate and Evictions, approved in the first reading by the Lower House, on May 24 of this year.
In its proposed amendment, the MIVHED suggests that homeowners charge a security deposit to guarantee payment of utility bills such as electricity, water, and cable TV. It also seeks to create a fund to provide transitional housing for those unable to pay their rent.
Meanwhile, FINJUS proposes that the project being analyzed by the congressmen be designated solely for housing and not for commercial or industrial premises, as established by the legislative piece.
The MIVHED, led by Minister Carlos Bonilla, proposes to the special commission of deputies studying the bill that, at the time of making a rental contract, the owner "may demand" the payment of the deposit, which in no case will exceed the value of the public services corresponding to two consecutive billing periods.
The document delivered by the Ministry states that the owner "may refrain" from fulfilling the obligations of the contract until he receives the deposit to pay for the services and stipulates that the contract will be automatically terminated if the tenant does not pay the deposit within a period of fifteen days from the time of signing the contract.
Among the changes the entity wants to integrate into the bill, it seeks that the payment of services be assumed exclusively by the tenant, but when there are constant delays in the payments of any of these services, the affected company may demand from the owner the deposit that he received when the rental contract was signed.
In its latest suggestion on the subject, MIVHED proposes that companies providing communication, water and electricity services cannot deny requests for new contracts under the pretext of overdue bills from previous tenants or owners.
Within the group of modifications delivered to the team of deputies, the government entity aims to create a stock of housing for tenants who are unable to pay rent and who, therefore, must leave the houses they rented.
With this, MIVHED aims to protect tenants "in their right to housing without affecting the financial conditions of landlords.".
To this end, in addition to providing temporary housing, the institution will establish a public rental guarantee fund and proposes a program to provide legal support from the State to those who have to deal with landlords who intend to evict them.
Rental price
In its proposal, the MIVHED adds an article stipulating that the rental price of a home cannot exceed 1.5% of the commercial value of the property and, in all cases, the price adjustment will be regulated by the MIVHED using references to construction inputs, changes in macroeconomic conditions and the minimum wage.
Additionally, in another aspect of the initiative, the Ministry of Housing, Urban Development and Housing (MIVHED) proposes to be responsible for establishing regulations to define annually the percentage adjustment for rental prices based on the intended use of the lease agreements. Consequently, it will be necessary to specify whether the leased property will be used for residential, commercial, or industrial purposes.
Tax incentives
MIVHED suggests that the State create tax incentives that encourage the construction of houses intended for rent, including tax reductions for those who set fair prices, tax deductions for those who improve physical structures intended for businesses, tax incentives for tenants who keep their payments up to date, and tax benefits for foreigners who build investment projects intended for rent.
These incentives aim to promote "greater stability and sustainability in the market".
The committee will meet tomorrow to analyze proposals
Deputy Eugenio Cedeño, president of the special commission studying the project, announced that his team will meet tomorrow, Tuesday, and during the meeting, they intend to hear in person the package of suggestions issued by the different sectors regarding the bill.
What FINJUS proposes
According to Finjus, including commercial premises in the law would affect the productive sector and harm the dynamism of investment, so it proposed leaving commercial, industrial and tourist premises out of the rental project and basing these on civil law and the principle of autonomy of the parties.
The bill was proposed by the Speaker of the House of Representatives, Alfredo Pacheco, and by legislator Rafael Castillo.
