All Forum Posts by: Victor Chico

DISCLAIMER: I am NOT an expert on Puerto Rico mortgage law. This is my opinion and you should consult with a lawyer.

That being said, I don't think there is any prohibition in Puerto Rico for a private individual to hold mortgage in Puerto Rico. Our property law was inherited from Spain. Therefore, we don't have the same mechanisms for property protection as in the USA, but we have mechanisms that will achieve the same results.

@Dennis Rodriguez... let me know what you want to know about private lenders in a private message and I will get back to you. I have an idea on something that might work for private lenders.

The law does protect the children more. You have to notify the Family Services (Departamento de la Familia) and that gives the tenant 30 additional days. I have not had the experience of evicting adults with children yet. However, stay posted. Sadly, I might have to do it in a month or two.

Lending is same as the US. We are a US territory. FHA loans, HUD...same process, regulations and laws.

There is a "fast track" eviction process. In reality, it takes anywhere from 45 to 90 days to get someone out (depends on the case). I am an attorney and the few evictions I have done have gone by fast (around 30 to 45 days).

Saludos! I am here to learn and help.

Saludos desde la Isla del Encanto!

@Michael Blank

I believe you have the general overview of how it works. My hunch (see first post) was correct in the sense that for small projects it's not worth the hassle of LIHTC. In Puerto Rico, LIHTC are used for projects above 50 units and most are awarded to 100+ unit projects.

Currently, I am researching the HOME Investment Program for the small projects (5-10 units) that I want to develop.

I found a great resource online for LIHTC here: http://www.lizbramletconsulting.com/

I contacted Ms. Bramlet via email and explained what I wanted to do and she confirmed my hunch and gave me the contacts for some local resources that have experience in my area with these programs.

Hope this helps!

@Bradley Bogdan, thanks for confirming what I was already starting to suspect. It seems that anything below 50 units is not worth the LIHTC hassle cost-wise. In addition, neither my partner, nor myself have ever received or gone through the LIHTC process.

Hopefully, somebody will chime in about HOME. From what I have been reading, it's the way to go.

Hello:

I looking for someone who has had experience with the above mentioned programs. Here is my story...

I have a single family home in a big lot. I rent it under Section 8. I have already spoken with a friend who's an architect/engineer and the lot can accommodate 4 to 5 additional units. Since this will all be low income housing, I am looking for financing alternatives.

I have read about Low Income Housing Tax Credits (LIHTC) and what I am reading tells me (if I am reading it right) that for a project of this size (i.e., 6 units tops) the costs involved in getting and issuing the credits will not make the project cost-effective.

Therefore, I am currently pondering the option of developing using funds from the HOME Investment Program and then put permanent financing in place with a HUD's Multifamily Loan.

So, if you have had any experience with what I mention above, PLEASE share. I will buy you coffee (or preferably beer) whenever you are in my neck of the woods (sunny Puerto Rico).

Saludos @Brian G.:

Please share the numbers. I have rental property in the north of Puerto Rico, but would like to get some property in the metro area.

Thanks!