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Bill To Pass Moratorium On Judicial And Administrative Evictions

This past Tuesday, March 24th, a new bill was received by the Legislative Branch pertaining to a proposed moratorium on judicial and administrative evictions, which means that landlords would not be able to evict their

bill to pass

This past Tuesday, March 24th, a new bill was received by the Legislative Branch pertaining to a proposed moratorium on judicial and administrative evictions, which means that landlords would not be able to evict their tenants if they fail to pay rent during the term of this moratorium.

This law would aim to prevent individuals, legal entities, and companies, seriously affected by the current health and economic crisis from being subjected to judicial or administrative eviction processes.

As mentioned by this bill, no person who has been fired, is unemployed, or demonstrates that does not receive sufficient income to make the rent payment, may not be subjected to a judicial or administrative eviction process, for three months. The pending payments would be accumulated without interest, collected, and distributed among all the months following the moratorium period established by this law, and according to the remaining term of the corresponding lease. Each additional charge per month of the amount owed, could not exceed 50% of the amount of the monthly fee that was charged up until the moment of approval of this law.

In addition, this bill also excludes the possibility to evict companies, for a period of three months, who can demonstrate that as a result of the current health and economic crisis, their profits have been reduced by 20% or more. The decrease in profits should be certified by a public or private accountant. The pending payments would be accumulated without interest, would be collected and distributed among all the months following the moratorium period established by this law, and according to the remaining term of the corresponding lease. Each additional charge per month of the amount owed could not exceed 50% of the monthly fee that was charged up until the moment of approval of this bill.

Moreover, this Wednesday March 25th, a more updated version says that after the moratorium, tenants would have to pay the grace months through additional installments of at least 20% of the accumulated amount.

The idea behind this bill, as explained by some senators, is to seek the creation of a single consensual text, where the eviction of people who can demonstrate that their finances have been affected by Covid-19 is stopped, without creating a major impact on the economy of landlords who depend on this income every month, so as not to leave some individuals unprotected in the desire to protect others.

As mentioned by the legislators, they are fully available at the virtual negotiating table to reach a meeting point, understanding that we are in a crisis that requires urgent decisions.

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gfajardo@outlierlegal.com

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