Summary.
The bill amends Article 16 of Law 3 of 1985, which establishes a preferential interest rate scheme for certain mortgage loans. It proposes that loans under that scheme may be granted until December 31, 2027. For loans financing multi-unit vertical housing whose registered value at the time of financing is greater than one hundred twenty thousand balboas (B/.120,000.00) and does not exceed one hundred eighty thousand balboas (B/.180,000.00), it sets June 30, 2026 as the deadline. The distinction depends on the type of housing and its registered value when financing is arranged.
The bill also amends transitional Article 5 of Law 94 of 2019. Under the proposed wording, preferential mortgage loans granted from the promulgation of the proposed law through December 31, 2027 would qualify for the benefits of Law 3 of 1985, subject to the exceptions in Article 5-A of that law. This provision links the period during which loans are granted to the rules governing access to the benefit under the preferential interest rate scheme.
For purposes of applying Article 5 of Law 3 of 1985, the transitional provision distinguishes the cases in items 1 and 2 from those in items 3 and 4. The first group covers housing with occupancy permits issued during the period beginning in January 2017 and ending on August 1, 2027. The second covers multi-unit vertical housing with occupancy permits issued during the period beginning in January 2017 and ending on June 30, 2026. Accordingly, the occupancy permit and housing category determine which period would apply when assessing eligibility for the benefit.
Alongside the transitional amendment, the text includes a rule applying the exception in Article 16 of Law 3 of 1985 to loans for multi-unit vertical housing within the stated registered-value range. That rule covers the period from July 1, 2024 until the proposed law’s promulgation. The final provision expressly identifies the amendments to Article 16 of Law 3 of May 20, 1985 and transitional Article 5 of Law 94 of September 20, 2019. It provides that the proposed law would take effect upon promulgation.
In institutional terms, the bill is connected with the National Assembly (Asamblea Nacional) and the statutory preferential mortgage loan scheme. Its provisions could concern financial institutions that grant mortgages, developers of multi-unit vertical housing, and people seeking to finance a home through that scheme.
What it proposes.
- The period for granting mortgage loans with preferential interest rates.
- Transitional application of benefits under Law 3 of 1985.
- Occupancy permit issuance periods for housing covered by the scheme.
Who it would affect.
- People applying for preferential mortgage loans.
- Institutions granting those loans.
- Developers of multi-unit vertical housing.
Key points.
- It proposes that mortgage loans with preferential interest rates may be granted until December 31, 2027.Art. 1
- It sets June 30, 2026 as the deadline for loans financing multi-unit vertical housing whose registered value is greater than one hundred twenty thousand balboas (B/.120,000.00) and does not exceed one hundred eighty thousand balboas (B/.180,000.00).Art. 1
- It extends transitional access to benefits under Law 3 of 1985 to loans granted through December 31, 2027, subject to the exceptions in Article 5-A.Art. 2
- For items 1 and 2 of Article 5 of Law 3 of 1985, it links the benefit to occupancy permits issued through August 1, 2027.Art. 2
- For items 3 and 4 of that article, it links the benefit for multi-unit vertical housing to occupancy permits issued through June 30, 2026.Art. 2
- It includes a transitional rule applying the exception for the stated value range of multi-unit vertical housing from July 1, 2024 until the proposed law’s promulgation.Art. 2
- It identifies the two amended provisions and makes promulgation the effective date.Arts. 4-5