P.R. Laws tit. 17, § 1029
The following conditions shall be stated in the deed as restrictive conditions and shall constitute a real lien on the property:
(a) The beneficiary shall be bound to reimburse the Housing Finance Authority of Puerto Rico the total or a portion of the subsidy received under this chapter, in the event he/she decides to sell, barter, bequest or otherwise convey the property within a period of six (6) years from the date the subsidy is granted, pursuant to the following table:
If the conveyance occurs Amount of subsidy to be during the: reimbursed: First and Second Year 100% Third Year 80% Fourth Year 69% Fifth Year 40% Sixth Year 20%
If the beneficiary of the Program dies, his forced heirs shall not be bound to comply with the stated reimbursement if the property had been legitimately conveyed to them by testamentary or intestate succession. If the heirs became owners of the property within the six (6)-year period mentioned above, and within said period, decide to sell, barter, bequest or otherwise convey the property, they shall be bound to make the reimbursement as stated above.
When a co-owner beneficiary of the Program decides to sell, barter or otherwise convey his/her share in the real property to another co-owner, he/she shall be bound to reimburse that portion of the subsidy corresponding to his/her share, applying the percentages indicated in this section. In case of divorce, the Secretary of Housing shall provide through regulations the criteria to be used to determine if the separated spouse will have to reimburse the subsidy.
If the subsidy reimbursement is required, it shall have to be made prior to, or simultaneously with the juridical procedure that will give rise to the transfer of ownership, it being essential and indispensable that the Housing Finance Authority of Puerto Rico appears in the documents conveying ownership, for the purpose of giving consent and releasing the property from the lien, once the reimbursement is made.
(b) The beneficiary shall not lease the property nor use it for any purpose other than as his permanent domicile.
(c) The property shall not be mortgaged without the prior written consent of the Housing Finance Authority of Puerto Rico, and shall be restricted to those financing or lending institutions approved by the Bank.
The restrictive conditions consigned herein shall exist as long as the mortgage is in force, subject to what is established in subsection (a) of this section.
History —Dec. 10, 1993, No. 124, § 11; Sept. 29, 2004, No. 498, § 4.