P.R. Laws tit. 5, § 4634
All housing cooperatives that are active according to the registry of the Cooperative Development Administration may convert into a member-owner cooperative housing regime provided that they comply with the following requirements:
An amendment to the articles of incorporation and the bylaws is approved pursuant to this chapter. The cooperative submits to the Cooperative Development Administration a conversion plan together with the approved amendments to obtain the approval of the Administration.
The conversion plan shall address the following matters:
(a) The manner in which the cooperative shall settle or renegotiate the mortgages or other financial obligations that burden the cooperative or the real property, pursuant to the local or federal regulations that apply;
(b) the formula to be used to calculate the sponsorship of each member for purposes of exchanging said financial interest for the value of the housing unit, in whole or in part, and the manner in which that portion of the value of the housing unit to be covered shall be financed;
(c) the manner in which it shall be provided for the conservation of the reserves produced in this chapter and the contributions to be made by each member;
(d) submit a draft of the master deed to be submitted to the Property Registry, and
(e) any other matter that is provided by regulation to ensure a fair, equitable and feasible transition plan.
History —Sept. 1, 2004, No. 239, § 35A.44.