(No. 280) (Approved November 30, 1998) AN ACT

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1 (S.B. 1405) (Conference) (No. 280) (Approved November 30, 1998) AN ACT To exempt the agencies, public corporations and government instrumentalities authorized to issue permits, endorsements, advisory opinions and/or certifications relative to the projects developed through the New Homestead Program, created through the Executive Order of October 15, 1998, Administrative Bulletin No. OE , from having to comply with the terms and procedures established in Act No. 75 of June 24, 1975, as amended, known as the Planning Board of Puerto Rico Organic Act ; Act No. 76 of June 24, 1975, as amended, known as the Regulations and Permits Administration Organic Act ; Act No. 81 of August 30, 1991, as amended, known as the Uniform Administrative Procedures Act of the Commonwealth of Puerto Rico ; to establish special provisions to handle all procedures before the Planning Board, the Regulations and Permits Administration and the Environmental Quality Board; to enable the various government agencies to expedite the handling of the procedures established in the aforementioned laws; to provide for judicial reviews; to set forth a statement of purpose; to provide for financial donations or subsidies for housing for the victims of accidents or disasters, for the transfer of bonds, for the transfer of land or dwellings, for expropriations, for awarding contracts, for statements of interest by victims of accidents or disasters and for the publication of advertisements.

2 2 STATEMENT OF MOTIVES Section 19 of Article II of our Constitution recognizes the broad powers of the Legislature to enact laws for the protection of the life, health and general welfare of our citizens. This is so pursuant to the nature of the legislative bodies as representatives of the people and as part of the exercise of the police power of the state. The Legislature exercises, by virtue of its condition as a constitutive power of the People of Puerto Rico, the power to make decisions on behalf of the people as a whole. Although it is true that many of the functions of the legislative power have been delegated to the agencies of the executive power, it is necessary to remember that said power in the last instance rests on our constituents and their democratically elected representatives. This faculty is exercised within the constitutional framework of the separation of powers. Pursuant to these powers, the Legislature is authorized to legislate so as to fulfill the basic needs of the People of Puerto Rico. On September 21, 1998 the Island of Puerto Rico was battered by hurricane Georges causing much damage throughout the Island. The Governor of Puerto Rico, through a proclamation, declared a state of emergency. Subsequently, and in answer to the request made by the Government of Puerto Rico, the President of the United States declared the Island to be a Disaster Area, a fact which led to the implementation of a recovery plan with the participation of Federal and Commonwealth entities. The magnitude of the disaster caused by hurricane Georges required that all the agencies of the Government of Puerto Rico deal expeditiously and effectively with their areas of competence so as to ensure the recovery of the Island in as short a time a possible.

3 3 Hurricane Georges left a trail of devastation in its path that affected all phases of the life of our people. The housing sector was no exception. Thousands of families were left homeless since over 50,000 housing units were severely affected or totally destroyed. The Government is genuinely and unquestionably interested in ensuring that every family who lost its home due to this catastrophic event return as soon as possible to their normal way of life and that it may furthermore be able to definitively possess a home of its own. This is particularly true of those citizens who were placed in shelters. The new homes for the victims of this disaster shall meet the highest planning and construction standards so as to ensure the protection of the green areas and the environment. They shall also be located in areas to be developed so as to repopulate our urban centers and so that the resident families may not have to exclusively depend on using their private automobiles. All this shall be accomplished taking into consideration the needs of physically challenged persons and of the elderly who constitute quite an important sector of our society. This interest of the Government of Puerto Rico has made necessary the creation of an interagency entity that will coordinate the recovery efforts in matters of housing. To that effect, the Governor of Puerto Rico signed the Executive Order of October 15, 1998, Administrative Bulletin No. OE which created an Interagency Task Force named Grupo: Nueva Vivienda Segura (New Homestead Group). Said Group is responsible for developing and implementing the New Homestead Program for the construction of new permanent homes to replace those that were severely damaged or totally destroyed by Hurricane Georges, through the consolidation of Federal, Commonwealth and Private funds and resources available for such a purpose.

4 4 The New Homestead Program seeks to develop 50,000 housing units and build these according to those specifications established so as to avoid a repetition of the devastation we see today. Likewise, it shall be necessary to ensure that future events of a similar destructive magnitude are not damaging to the existing properties pursuant to the public policy that seeks to build a better and safer Puerto Rico. The complex nature of the government structures and procedures has to yield to the challenge presented by the present situation in Puerto Rico. We must implement expeditious and vigorous procedures that will allow the achievement of the objectives set forth in as short a time as possible in order to successfully undertake the task of reconstructing Puerto Rico. The affirmative action of the Legislature is therefore needed if we are to efficiently implement this recovery plan. In the exercise of the police power of the state, the Legislature believes that in view of the difficult situation Puerto Rico is undergoing at this moment, it becomes necessary to exempt the government entities that participate in this initiative from the regular procedures and terms so that said entities may implement expeditious procedures for the determination of these cases. Thus shall the most efficient conservation, development and use of the existing resources be achieved in order to protect the health, safety and welfare of all the people of Puerto Rico. The Legislature of Puerto Rico, in the exercise of its constitutional powers and on the basis of the police power of the state which it upholds when facing either an emergency or an urgent public need when so required so as to protect the lives, health and general welfare of the people, hereby approves the present legislation.

5 5 BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.- Statement of Purpose The Legislature, in the exercise of the police power of the state, is authorized to adopt those measures that seek to protect the health, safety and welfare of the people. To that effect, it is the duty of the Legislature to approve laws that shall respond to the various social and economic interests and to emergency situations. Section 19 of our Bill of Rights, concerning the enumeration of rights contained in its Article II, provides that The power of the Legislative Assembly to enact laws for the protection of the life, health and general welfare of the people shall not be construed restrictively. Pursuant to the above, it is the public policy of our government to look after the best interests of its citizens. As an expression of said policy, the Government fosters the mechanisms that are proper and necessary to achieve the general welfare of the people. In order to properly attend to the increased demand and need for housing in Puerto Rico caused by the passing of the hurricane Georges through Puerto Rico on September 21 and 22, 1998, we believe it imperative to create the mechanisms needed to plan, coordinate and develop prevention and new permanent housing construction programs through the consolidation of Federal, Commonwealth, municipal and private funds and resources. The Legislature of Puerto Rico, through its power to regulate and in compliance with its obligation to look after the welfare, health and safety of the people, hereby ratifies the fact that a public emergency exists in relation to the housing problem in Puerto Rico. Therefore, the immediate need to set forth the public policy on housing in Puerto Rico is hereby declared.

6 6 It is then the responsibility of the Legislature of Puerto Rico to legislate in order to attend to this problem. To that effect this measure, which is closely related to the general welfare of the community, seeks to achieve a public goal of the highest importance. The Legislature believes that in view of this crisis, the real, expeditious and efficient alternative is the creation of an Interagency Task Force to develop and implement the New Homestead Program to alleviate the problem and engage in the construction of new dwellings to replace those that were severely damaged or totally destroyed by hurricane Georges. The goal is to develop fifty thousand (50,000) housing units and build these according to those specifications established so as to avoid a repetition of the devastation we see today. Likewise, it shall be necessary to ensure that future events of a similar destructive magnitude are not damaging to the existing properties pursuant to the public policy that seeks to build a better and safer Puerto Rico. In this sense it is unthinkable to put off programming the relocation of those homes which are presently located in areas prone to severe flooding, in areas susceptible to landslides and in certain places, subject to the pounding of cyclonic ocean swells. Section 2.- During the term of duration, which shall not exceed five (5) years, of the phase for the construction of new housing to replace those dwellings severely damaged or destroyed during the emergency created by hurricane Georges, under the New Homestead Program, the public corporations and the government agencies and instrumentalities charged with issuing permits, endorsements, advisory opinions and/or certifications shall be governed by the provisions of this Act and shall be exempted from complying with the terms and procedures established in Act No. 75 of June 24, 1975, as amended, known as the Puerto Rico Planning Board Organic

7 7 Act, Act No. 76 of June 24, 1975, as amended, known as the Regulations and Permits Administration Organic Act, Act No. 81 of August 30, 1991, as amended, known as the Commonwealth of Puerto Rico Autonomous Municipalities Act of 1991 and Act No. 170 of August 12, 1988, as amended, known as the Commonwealth of Puerto Rico Uniform Administrative Procedures Act and the regulations promulgated pursuant thereto. The agencies are authorized to establish alternate procedures and terms to expedite the issue of permits, endorsements, advisory opinions and/or certifications related to the projects to be developed through the New Homestead Program. Provided, that for the purposes of this Act special priority may be granted to those projects or dwellings that comply with at least one of the following conditions: I. those built on the same lot or tract of land where a dwelling used or owned by the person whose property suffered damages had been located whenever the circumstances allow, pursuant to the provisions of this Act. II. those designed and built with consideration to the particular needs of physically disabled or aged persons. III. those built in urban or rural areas whose existing infrastructure is adequate and that allow easy access to the business sector and the government institutions to provide basic and essential services and those that are built according to the typical development of affordable housing projects. IV. those tracts of land that are presently classified as Residential in the zoning plans or that because of their location may be classified as such.

8 8 V. those that are capable of taking advantage of the right to use the surface of real property. The construction of second-story dwellings, provided the construction and safety codes allow such construction. VI. those new construction projects that entail a greater density of dwellings per area, thus the most efficient use of the land. Section 3.- The Infrastructure Financing Authority and the Department of Housing shall be the agencies charged with certifying the projects to be undertaken under the New Homestead Program with the collaboration of the Federal Emergency Management Agency (FEMA). The Infrastructure Financing Authority shall be the agency in charge of proposing the projects to be undertaken. Section 4.- The public corporations, government agencies and instrumentalities and the municipalities concerned with the projects introduced under the provisions of this Act and directed by the Planning Board to provide comments and/or endorsements, shall have the nonextendable term of five (5) working days from the moment the petition for their comments and/or endorsements is made, to present their endorsement or opposition to the proposal to be evaluated. Should an answer not be received after said term of five (5) working days the proposal shall be deemed as endorsed. This transaction shall be done at the Expedited Transactions Center of the Planning Board. Section 5.- A term of ten (10) working days is hereby established to begin at the time the Infrastructure Financing Authority files the corresponding environmental document so that the Environmental Quality Board may state its agreement or objection pursuant to the provisions of Act No. 9 of June 18, 1970, as amended, known as the Environmental Public

9 9 Policy Act. The evaluation of said environmental document shall be conducted by the Interagency Subcommittee on Expedited Regulations created through the aforementioned Executive Order, whose members shall be authorized to evaluate and adjudicate the possible environmental impact the projects to be developed may have. The Infrastructure Financing Authority shall produce the documents and information requested involving the evaluation of the environmental documents. Likewise, the participation in the Interagency Subcommittee of representatives of the Department of Natural and Environmental Resources, the Aqueducts and Sewers Authority, the Electric Power Authority and any other government agency or instrumentality, public corporation and municipality, may be required, as determined by the Chairperson of the Environmental Quality Board. Under special circumstances the majority vote of the Interagency Subcommittee may extend the term provided to evaluate and adjudicate the possible environmental impact for a period of not more than forty-five (45) days. The above notwithstanding, the categorical exemptions granted pursuant to Section 4(c) of the aforementioned Act No. 9, related to the development and construction of dwellings, shall be extended to the projects to be built under the New Homestead Program. Section 6.- Once the Infrastructure Financing Authority has filed a location advisory opinion with the Planning Board under the New Homestead Program, in compliance with the aforementioned Act No. 9, the Planning Board shall have a non-extendable term of fifteen (15) working days to evaluate the location advisory opinion. Section 7.- Once the location advisory opinion has been approved, the Infrastructure Financing Authority shall submit the project for the consideration of the Permits and Regulations Administration. The

10 10 Administration shall have five (5) working days to evaluate and issue the corresponding permits one the project has been filed under the New Homestead Program. Section 8.- The government agencies and instrumentalities and the public corporations are hereby authorized to issue the necessary administrative orders needed to enforce and comply with the purposes of this Act. The projects under the New Homestead Program shall be exempted from the payment of any stamp, voucher or tax required for granting permits, endorsements, advisory opinions and/or certifications. Section 9.- For all procedures that require that the interested parties be notified it shall be sufficient to publish only one announcement in a newspaper of general circulation. Section 10.- The projects under the New Homestead Program shall have priority in the programs of all government agencies and instrumentalities and public corporations. Provided, that the projects shall be transacted directly with the corresponding Central Government agencies and instrumentalities and public corporations, regardless of whether the municipalities hold transfers of rank agreements. Section 11.- The party adversely affected by any resolution or order issued by any agency may only appeal by filing a petition for review with the Circuit Court of Appeals. Any petition for the judicial review of the decision of the administrative agency concerned must be filed with said Court within the jurisdictional term of twenty (20) natural days from the date a copy of the notice of the final resolution or order of the agency is recorded. The appellant shall give notice of the filing of the petition for review to the agency appealed and to all interested parties within the term established,

11 11 providing, that compliance with said notice shall be of a jurisdictional nature. The issue of a writ of review shall not paralyze the authorization of a project nor the implementation of rules, regulations, orders, resolutions, determinations, transactions and concessions, nor the effectiveness of any permit, endorsement or certification of an agency or official, nor the adjudication of a bid, nor the award of a contract that has been issued or has arisen in relation to the projects under the New Homestead Program, unless the Court issues an express order so as to prevent irreparable damages after considering a motion in support of jurisdiction to that effect. For the Court to issue said order the appellant must prove that said order is indispensable to protect the jurisdiction of the Court, that it has a high probability of prevailing on its merits, that the paralyzation order shall not cause any substantial damage to other parties, nor shall it be prejudicial to the public interest, that there is no reasonable alternative available to prevent the alleged damages and that the damages may not be compensated through monetary redress or through any other proper legal remedy, pursuant to the provisions of the Code of Civil Procedure of 1933, as amended. Any Court order may only affect that component or components of the project object of controversy and those cases whereby substantial damages are involved. Section 12.- The New Homestead Program and/or the Infrastructure Financing Authority are hereby authorized to grant financial donations or subsidies to the victims of accidents or disasters who qualify under their criteria or who are able to obtain mortgage financing to acquire a home in the open market or to rebuild their homes in safe areas. The

12 12 standards that shall govern said donations or subsidies shall be established through regulations or administrative orders. Section 13.- It is hereby provided that the bonds posted by the victims of accidents or disasters who participate in the New Homestead Program to receive water, electric power or any other service provided by the Government of Puerto Rico, shall be transferred to their new homes. Section 14.- When land property of the Government of Puerto Rico is transferred for the construction of housing projects under the New Homestead Program or when bids are adjudicated under that Program, the project as a whole shall be set aside for those families that qualify under the Department of Housing and that meet the conditions as victims of the disaster caused by Hurricane Georges as well as all other requirements established through regulations or administrative orders. None of the housing units promoted under this Program may be transferred to families that fail to qualify as victims of the disaster caused by Hurricane Georges. Section 15.- It is hereby provided that if the land to be acquired is the property of a public corporation and that it is not to be transferred through donation, the purchase or expropriation of the same is hereby authorized without the Infrastructure Financing Authority being bound to pay for the same according to its fair market price. Section 16.- The provisions of this Act shall prevail over any other general or special provision of law or any regulations inconsistent with the same. However, it is hereby provided that to award contracts under this Act, all requirements established for executing contracts with the Government of Puerto Rico must be met. The documents or certifications to be issued by the Government of Puerto Rico must be made available within five (5) days.

13 13 Section 17.- The provisions of this Act are separable and should any of them be declared unconstitutional by a court with competent jurisdiction, said decision shall neither affect nor impair any of the remaining provisions nor provide for the New Homestead Program to be detained. Section 18.- So as to comply with the pressing interest of the Government to ensure that every family that lost its home as a consequence of the passing of Hurricane Georges return as soon as possible to its normal way of life and acquire a safe home of its own, it is hereby provided that within twenty (20) days of the date of approval of this Act, the Department of Housing shall make available a form so that those persons who may qualify under the New Homestead Program may state their interest in participating in the same. As soon as said form is ready and the victims of the disaster are notified of its availability, those persons interested shall have ninety (90) days to obtain and fill out said form. Only those applications filed within this term shall be reviewed and evaluated. The Department of Housing shall let the victims of the disaster know how to obtain said form. Section 19.- It is hereby provided that those persons who acquire a home under the New Homestead Program may not transfer ownership of the same within five (5) years of the date of its acquisition or within whatever term the Federal or Commonwealth laws and regulations may provide, should these be more restrictive. Section 20.- In order to offer the People of Puerto Rico the proper guidance on this matter, the New Homestead Group is hereby directed to publish in the communications media the full text of this Act and any other pertinent information. The orientation notices must immediately begin to be made public on the radio, television and newspapers of general circulation in Puerto Rico and shall not be subject to the electoral ban provided by the

14 14 Regulations for the Control of Government Public Broadcasting Expenses for the Plebiscite of December 13, 1998, adopted pursuant to Act No. 249 of August 17, Section 21.- This Act shall take effect immediately after its approval and its provisions shall be complied with not later than five (5) years after its approval.

15 15 March 8, 2001 Dynorah R. Requena-Gallego, Esq., Acting Director of the Office of Legislative Services of the Legislature of Puerto Rico, hereby certifies to the Secretary of State that she has duly compared the English and Spanish texts of Act No. 280 (S.B. 1405) (Conference) of the 4th Session of the 13th Legislature of Puerto Rico, entitled: AN ACT to exempt the agencies, public corporations and government instrumentalities authorized to issue permits, endorsements, advisory opinions and/or certifications relative to the projects developed through the New Homestead Program, created through the Executive Order of October 15, 1998, Administrative Bulletin No. OE , etc., and finds the same are complete, true and correct versions of each other. Dynorah R. Requena-Gallego