P.R. Laws tit. 17, § 895
There shall be exempt from income taxes, the income earned by the owner of a multi-family affordable housing project destined to be leased as well as up to ten percent (10%) of the yield on the capital invested in the acquisition and construction or rehabilitation of the property, provided that:
(a) He demonstrates, through the presentation of documents and records required by regulations, that the capital invested in the construction or rehabilitation of the multifamily project, whatever the case may be, is the product of a bona fide transaction.
(b) The rental fee of the rented housing units does not exceed the sum that the Program Administrator determines is adequate for the owner of the housing units to cover the administration and maintenance expenses of the rented property, to receive a yield on his capital investment and to meet his other obligations as an owner, pursuant to the parameters established by regulations.
(c) The income on which a tax exemption is claimed is derived from the rental fee paid by low or moderate income families.
(d) The unit rented within the multifamily housing project or the family occupying the unit does not receive a direct subsidy for the payment of the rental fee from the Government of the Commonwealth of Puerto Rico or the Government of the United States of America.
(e) The construction or rehabilitation of the housing units to which said income is attributable began after the approval of this act and before December 31 st, 2018.
The income tax exemption granted under this section may be claimed by the owner to the Secretary of Treasury and the Secretary of Housing, as long as the housing units are occupied by low- or moderate-income persons and for a term not to exceed fifteen (15) years, counted as of the date of approval of the tax exemption.
History —June 26, 1987, No. 47, p. 159, § 5; Dec. 29, 1989, No. 2, p. 643, § 4; Dec. 10, 1993, No. 121, § 3; Aug. 28, 1997, No. 105, § 3; Dec. 31, 1999, No. 369, § 3; Aug. 17, 2001, No. 118, § 4; May 11, 2004, No. 114, § 3; Dec. 14, 2007, No. 198, § 3; May 12, 2011, No. 72, § 2; Nov. 17, 2015, No. 187, § 37.