Bill 80.

Summary.

The bill provides that the Municipality of Panama (Municipio de Panamá) and the Ministry of Culture (Ministerio de Cultura) would identify areas of architectural interest through a partial plan within a polygon covering El Chorrillo, Santa Ana, Calidonia and Curundú. The identification covers land, buildings, houses, apartments, commercial premises and other structures. Those authorities would establish an urban renewal and recovery plan. For purposes of the proposal, the corregimiento (district) of San Felipe is excluded from homogeneous territorial zone ZH01 described in Municipal Agreement 61 of March 30, 2021 (Acuerdo Municipal 61 de 30 de marzo de 2021), under which the Municipal Council of Panama (Consejo Municipal de Panamá) approved the district’s first local land use plan. Implementation would cover buildings displaying vernacular, colonial, neoclassical and modern architecture, among other styles. The plan’s purposes include harmonious coexistence, economic activity, public and private investment, the urban landscape, quality of life and affordable housing.

The text defines the interventions and persons relevant to its application, including adaptation, conservation, demolition, recovery, remodeling, urban renewal, comprehensive rehabilitation, restoration, owners, tenants and investors. It also defines partial and local land use plans, land and institutional uses, and homogeneous zones. Banks and financial institutions, as well as owners and investors undertaking reconstruction, rehabilitation, recovery or demolition in the four districts, would qualify for benefits under Law 136 of 2013. Tenants holding a duly executed lease who are affected by those works could also qualify for its incentives.

The Ministry of Housing and Land Management (Ministerio de Vivienda y ordenamiento Territorial) would relocate nonowner occupants of buildings that are ruinous, uninhabitable or declared unsafe for habitation by the National Civil Protection System (Sistema Nacional de Protección Civil) or the Ministry of Housing and Land Management (Ministerio de Vivienda y Ordenamiento Territorial), where owners claim the benefits and undertake the specified works within the year following entry into force. Occupants would have to establish that they occupied the property immediately before it was considered for the works. A tenant with a lease and current payments would have a nonextendable period of six months to vacate following notice and municipal approval of the preliminary project plans.

Where recovery or rehabilitation does not require a building to be vacated, the owner must notify a tenant whose rent is current of a proposed increase. The increase would take effect six (6) months after completion of the works, would not exceed 25% of the previous rent and would remain fixed for 3 years. A tenant unable to pay would have up to one year to relocate. Older persons would have priority to remain if doing so does not affect their health, or would be relocated; those over 75 years old whose payments are current could retain the same rent for life, without passing that benefit to relatives. These rules would apply to investments made within the year following entry into force.

Misuse of a preferential mortgage loan and abandonment of works receiving incentives would carry fines equal to the benefit obtained. If work is not resumed six (6) months after the fine for reasons attributable to the owner or investor, benefits received would be repaid to the National Treasury (Tesoro Nacional), with interest. The Municipality of Panama, through the Directorate of Works and Construction (Dirección de Obras y Construcciones), and the Ministry of Culture would investigate; the decision would be subject to reconsideration and appeal. Finally, the bill amends Article 30 of Law 136 of 2013 to set a fifteen (15) year implementation period, a possible five (5) year extension, and retroactive application to projects begun 4 years earlier. The Executive Branch would issue implementing regulations. Its provisions would concern the named public authorities and the housing, construction, finance, rental and urban conservation sectors.