P.R. Laws tit. 13, § 10632
(a) Denial and reconsideration. — The Executive Director may deny any application filed under this chapter when he/she determines in his/her best judgment that it does not merit the granting of credit, taking into consideration the facts presented, the criteria provided in this chapter for the evaluation of the applications for credit, and the other requirements and conditions provided in this chapter and in the regulations that are adopted thereby.
Once the owner has been notified of a denial by virtue of the provisions of this section, he/she may request a first and only reconsideration from the Executive Director, pursuant to the terms and conditions established by the regulations that the Authority promulgates for these purposes, according to the provisions of §§ 2101 et seq. of Title 3, as amended. When reconsidering the application, the Executive Director may consider any other term or condition, that does not exceed the benefits provided by this chapter, and which, in his/her sound judgment, is needed to ensure the best interests of the Commonwealth of Puerto Rico and the purposes of this chapter.
(b) Grounds and procedures for revocation; recovery of credit. — The Executive Director may revoke all or part of the credit granted to the owner under this chapter after allowing the owner to appear and be heard. The Executive Director may determine that said revocation shall be effective from the date the owner fails to comply, according to the following cases:
(1) When the owner fails to comply with the rental requirement, imposes a rental rate that is greater than allowed as a maximum rent, or for noncompliance with any of the obligations that have been imposed under this chapter, the regulations promulgated thereunder, or by the terms found in his/her qualification certificate or the credit certification, as the case may be. A revocation of credit under this subsection shall bind the owner, excluding the acquirer, to reimburse the credit received according to the year that noncompliance occurred, as established in § 10633 of this title; Provided, further, That the reimbursement of the credit thus revoked, shall include any applicable interest, surcharges and penalties. This penalty shall be owed by the owner, excluding the acquirer, as taxable income for the following taxable year.
(2) When the benefits of this chapter have been obtained by false or fraudulent representations, including but not limited to false or fraudulent representations related to the description of the housing project, its itemization of eligible costs and investment, the description of the housing units to be or not to be used for rental to low or moderate income families, compliance with the conditions of the qualification certificate, the credit certification, this chapter, its regulations, or any other fact or circumstance that, in whole or in part, have motivated the approval of the credit application. The revoking of credit under this clause shall bind the owner, excluding the acquirer, to reimburse the total amount of credit received by the owner, plus any applicable interest, surcharges, and penalties. Said amount shall be owed by the owner, excluding the acquirer, as taxable income for the following taxable year.
History —Oct. 4, 2001, No. 140, § 13; Aug. 13, 2008, No. 261, § 10.