P.R. Laws tit. 5, § 4638
All active housing cooperatives pursuant to the registry of the Cooperative Development Administration may convert into a member-owner cooperative housing provided that they comply with the following requirements:
(1) Amendments to the articles of incorporation and the bylaws pursuant to §§ 4420—4423 of this title are approved.
(2) That the cooperative submits a conversion plan together with the approved amendments to the Cooperative Development Administration for its approval.
(3) 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;
(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 established in this chapter and the contributions that shall be made by each member;
(d) the submittal of a draft of the master deed that shall 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.48.