Finance, insurance, and real estate constitute 19.5% of Puerto Rico's gross domestic product.
The real estate industry plays a vital role in the economy of Puerto Rico, contributing significantly to its GDP, employment, and overall growth. In this article, we will delve into various aspects of the real estate sector in Puerto Rico and explore its impact on the island's economic landscape.
U.S. Laws Providing Grants and Subsidies
Puerto Rico benefits from several United States laws that provide grants and subsidies for real estate development. These laws, such as the Bankhead-Jones Farm Tenant Act of 1937 and the Section 8 of the Housing Act of 1937, extend their coverage to Puerto Rico, promoting the growth of the real estate industry on the island.
Regulations Governing Real Estate in Puerto Rico
The real estate business in Puerto Rico is regulated by specific laws and acts. Act 77 of 1964 regulates real estate companies headquartered within Puerto Rico, while Act 45 of 1980 governs those outside of the island. These regulations ensure the smooth functioning and standardization of real estate practices in Puerto Rico.
Access Control
Law No. 21 of 20 May 1987, along with subsequent amendments, empowers developments and communities in Puerto Rico to control vehicular access and public use of their residential streets. This initiative aims to combat crime, improve security, and foster a safe and harmonious living environment for residents.
Municipal Revenues Collection Center (CRIM)
The Municipal Revenues Collection Center (CRIM) was established in August 1991 to enhance the powers and economic capacities of Puerto Rico's municipalities. This initiative focused on empowering local authorities, thus strengthening the real estate industry and economic infrastructure of Puerto Rico.
Solid Waste Management
To ensure efficient solid waste management, Puerto Rico has implemented Laws No. 24 of 8 June 1962 and No. 13 of 2 October 1980. These regulations support the proper handling and disposal of waste materials, contributing to a clean and sustainable environment for residents and visitors alike.
Home Investment Partnerships Program (HOME)
Under Title II of the Cranston-Gonzalez National Affordable Housing Act, the HOME program provides liquid assets and special guidelines to state and municipal governments. This initiative addresses housing needs and affordability issues, as determined by the Comprehensive Housing Affordability Strategies approved by the U.S. Department of Housing and Urban Development in 1990.
Regulation of the Real Estate Profession
Law No. 10 of 26 April 1994 was established to regulate the real estate profession in Puerto Rico. The law governs the practice of real estate brokers and creates the Examining Board of Realtors. It also controls transactions by companies engaged in the sale of real estate outside of Puerto Rico, ensuring transparency and ethical practices in the industry.
Significant Developments
In recent years, Puerto Rico has witnessed significant developments in its real estate sector. Notably, the transfer of properties to municipalities in 2010 aimed to improve services and amenities available to the community. Additionally, the housing stimulus program implemented by Governor Luis Fortuño in 2011 aimed to reduce inventory and stimulate the real estate market through various incentives and tax exemptions.
Conclusion
The real estate industry in Puerto Rico continues to play a crucial role in the island's economic growth and development. With favorable U.S. laws supporting grants and subsidies, robust regulations, and strategic initiatives, the sector thrives. As Puerto Rico embraces progressive changes and implements sustainable practices, the future of the real estate industry looks promising.
Disclaimer: The information provided in this article is for informational purposes only. Please consult with professionals and conduct thorough research before making any real estate-related decisions.
