Bill 714.

Summary.

The bill redefines the National Housing Policy (Política Nacional de Vivienda) to promote progressive access to decent, adequate, safe, and environmentally sustainable housing. It expands the housing options under Law 22 of July 29, 1991, to include new and existing homes, construction on land owned or legally acquired, home improvements, and urban renewal. Existing homes receiving benefits would have to meet habitability and safety requirements and be registered in the public registry.

It assigns functions concerning the My First Home Program, including approving its guidelines, evaluating results, and recommending adjustments. Financial institutions would participate voluntarily in FONDHABI programs. Each institution would retain autonomy to assess loans under its prudential criteria and the regulations of the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá). The Housing Savings Fund (Fondo de Ahorro Habitacional), administered by the Ministry of Housing and Land Use Planning (Ministerio de Vivienda y Ordenamiento Territorial), would incorporate guarantee, savings, and certification instruments. Its resources would be earmarked for specific purposes, and its funding sources would be expanded.

The My First Home Program would serve adult Panamanian citizens buying a home for the first time as their principal and permanent residence. Its benefits would be personal and nontransferable and, except where the law provides otherwise, granted only once. The program would bring together eligibility certification, the Mortgage Guarantee Fund (Fondo de Garantía Hipotecaria), housing savings, the One-Stop Office for Access to a First Home (Ventanilla Única para el Acceso a la Primera Vivienda), and a national registry. The use of false information or fraudulent conduct would result in the loss of benefits, in addition to any applicable liability.

The Ministry of Housing and Land Use Planning would issue certification after verifying the requirements through consultations with the Public Registry of Panama (Registro Público de Panamá), Electoral Tribunal (Tribunal Electoral), General Directorate of Revenue (Dirección General de Ingresos), Social Security Fund (Caja de Seguro Social), and National Authority for Government Innovation (Autoridad Nacional para la Innovación Gubernamental). It would decide complete applications within 30 business days; certification would remain valid for 12 months and could be renewed. Denial, suspension, or revocation could be challenged through administrative appeals. Certification would not constitute loan approval.

A Mortgage Guarantee Fund would be established within FONDHABI to partially back eligible loans for new or existing homes or homes built on land owned or legally acquired. The guarantee would be secondary and supplementary; it would not cover 100% of the obligation. To claim under it, a financial institution would have to demonstrate collection efforts, enforcement of collateral where applicable, and the eligible net loss. FONDHABI would be subrogated to the rights associated with amounts it paid and would return recoveries to the fund. The Board of Directors could recommend adjustments to the Executive Branch following financial or actuarial studies.

The bill would also create a voluntary savings program, a one-stop office to simplify and digitize procedures, and a registry of beneficiaries, certifications, and guaranteed transactions. It provides for data protection, information sharing among institutions, an annual report to the Executive Branch and the National Assembly (Asamblea Nacional), audits, and referral of irregularities to the competent authorities. It regulates the loss of benefits with an opportunity to be heard and to present a defense, preserves the rights of good-faith third parties, and requires implementing regulations within 180 calendar days after the law takes effect. It preserves the regime governing earlier benefits and provides for entry into force on the day after promulgation in the Official Gazette (Gaceta Oficial).

The bill involves the Ministry of Housing and Land Use Planning, FONDHABI, and other institutions responsible for information, supervision, and oversight, together with applicants, beneficiaries, financial institutions, and the housing, construction, and mortgage lending sectors.