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Public Law Alert – April 2020

ALERT - PUBLIC LAW

Provisions related to the application of the Special Regulations for Urban Development and Building in the national territory and extension of the validity of the Licenses issued under Law 29090

Today Legislative Decree No. 1469 has been published, which amends Law 29090, establishing measures for the reactivation of the real estate and construction sector, paralyzed by the spread of the coronavirus (COVID-19). The regulation has established the following:

(i) Make details regarding the application of the Special Regulations for Urban Development and Building for the execution of projects that are developed in the national territory corresponding to social housing, which are those housing solutions subsidized by the State, whose maximum value and requirements are established within the framework of the “Techo Propio”, “Crédito Mivivienda” programs, as well as any other product promoted by the Ministry of Housing.

(ii) The relevance in the enactment of Legislative Decree No. 1469 lies in the fact that, as is well known, the Special Regulation has been declared inapplicable in certain urban areas by local governments, for which these entities had resorted to the Principle of Competition, arguing that the execution of social interest housing projects must previously have been included in the provincial Urban Development Plan.

It has been specified that the technical regulations issued by regional, local or district governments must be in accordance with the regulation established in the Special Regulation with the inclusion provided for in the Legislative Decree under comment.

(iii) On the other hand, the rule under comment has also established that, the applications that are submitted to the municipalities to obtain the Urban Development and Building Licenses under the Special Regulation shall also include the reception of works or the conformity of work or building declaration both in a single file and payment of the right of review.

(iv) It has also been established that real estate developers must advertise that the projects are carried out under the Special Regulation, and this condition must also be included in the purchase and sale contracts that they sign. The license issued by the Municipality must also state that the project is executed according to the conditions and characteristics of social housing.

(v) Finally, the Legislative Decree has established that the validity of the Licenses included in Law 29090 shall be extended for the period in which the state of emergency is maintained, to which thirty (30) working days shall be added.

Any query on the matter may be acquitted by the lawyers of our Administrative Office. Contact doctors Carlos Carpio (ccarpio@estudiorodrigo.com); Hugo Silva (hsilva@estudiorodrigo.com); and/or, Hugo Sarria (hsarria@estudiorodrigo.com).