RENTAL PAYMENT SUSPENSION FOR REAL PROPERTY USED AS PRINCIPAL DWELLING UNITS

 

Resolution No. 011, dated April 10, 2021, issued by the Ministry of the Popular Power for Habitat and Housing, was published in Official Gazette No. 42.108 of April 16, 2021 (the “Resolution”). The Resolution suspended on a special and exceptional basis, up to October 7, 2021, the payment of rentals for real property used as principal dwelling units, in order to alleviate the economic situation of lessees as a result of the Coronavirus COVID-19 pandemic. The Resolution was issued in accordance with the provision of article 4 of Decree No. 4.577 (the “Decree”) of April 7, 2021 (Official Gazette No. 42.101 of April 7, 2021).

The Resolution establishes that by virtue of the suspension, the Ministry of the Popular Power for Habitat and Housing, through its assigned entity, the National Superintendence of Dwelling House Lease (Superintendencia Nacional de Arrendamiento de Vivienda – SUNAVI), will proceed to establish the specific conditions for the implementation of rental payment as per the methods established in the Decree, which are listed below:

• Payment of the rentals may be restructured or financed through an agreement between the parties (lessor-lessee). This restructuring or financing may not end at the time when the period of time prescribed in the Decree for suspension of the payments ends, that is, the full payment of the rentals may not be immediately required upon the end of the suspension.
• A gradual and progressive payment of the rental may be established through percentages allowing the full payment of the whole amount of the suspended payment. These percentages will vary with the consensus of the parties, starting with the payment of 10% and successively increasing said percentage until reaching the total amount of the rentals not received by lessor.
• The parties may establish as payment method, after the suspension has ceased, a double monthly payment of the rental until reaching the total amount not received by lessor.
• The parties may create a fund intended for the payment, establishing that the money deposited, whatever the amount may be, and even if the fund was created before the suspension, will be used to pay the rentals accrued during the suspension.
• Payment of special installments by lessee may be established, which installments will be set during the agreement of suspension. The amount of said installments may vary (the same amount of the rental or a higher amount), as well as their frequency (on a monthly, bimonthly or quarterly basis).
• In the event of discrepancies between the parties at the time of establishing the payment conditions, the SUNAVI will establish, through conciliation boards, the procedure to be followed for the execution of the agreements resulting from the suspension.
• All agreements entered into by reason of the suspension decreed must be filed with the SUNAVI’s Legal Consultancy Office.

Also, the Resolution establishes that the foregoing considerations do not hinder the possibility of entering into contracts or agreements, with the consensus of lessors and lessees, that aid the economic situation of lessees, which agreements must be also presented to the SUNAVI’s Legal Consultancy Office.

The Resolution suspends for six (6) months following the publication of the Decree in the Official Gazette the application of article 91 of the Law for Regularization and Control of Dwelling House Lease, referred to the grounds for eviction from real property under lease agreements.

Residential workers the remuneration of whom may be directly affected or impacted by the application of this measure must give notice to SUNAVI in order for their inclusion in the Patria system, so that they may be compensated through the measures of the National Executive.

The amounts agreed as per any of the different payment methods prescribed in the Resolution may not be subject to increase for default interest or any other compensatory item.

The Resolution became effective upon publication of the same in the Official Gazette.

In order to access the Resolution, please click here.

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