P.R. Laws tit. 21, § 6621
Two-thirds (⅔) of all the property owners of an area who wish to develop an improvement project therein may voluntarily establish themselves as an owners’ association under the provisions of this chapter through written consent to such effect. Said associations shall be organized as nonprofit corporations according to the provisions of Act No. 144 of August 10, 1995, as amended, known as the “General Corporations Law of 1995”, or any subsequent law, and shall also comply with the provisions of this chapter and with the applicable municipal ordinances. Except when in conflict with the provisions of this chapter, any regulations promulgated pursuant to the provisions herein, or any applicable municipal ordinance, the association shall have all the powers, privileges, and obligations of a nonprofit corporation created pursuant to the “General Corporations Law of 1995”, or any subsequent law. However, any activity not expressly included in this chapter in which any association participates, either directly or indirectly, including, but not limited to lending money to any natural or juridical person, or creating or acquiring a subsidiary or affiliate corporation, shall be previously approved by the company, according to the rules and regulations it may deem necessary to promulgate for such purposes. The term of existence of these associations, which may be indefinite or fixed for the duration of the improvement project or projects as agreed to by the members of such associations, shall be determined in their certificate of incorporation. The certificate of incorporation shall establish the specific purposes for which the association is established. Once incorporated, the association shall meet all tax law requirements in order to enjoy the benefits they provide for nonprofit entities. The provisions of this chapter do not prevent a developer from establishing an owners’ association, following the applicable procedures set forth herein, before the sale of the properties within the tourism improvement district by which the buyers of said district properties shall have to abide. The district’s developer shall retain, in his/her discretion, the control of the association, as provided in the municipal ordinance authorizing the establishment of the tourism improvement district, provided that not more than ninety-five percent (95%) of the properties planned for the district have been handed over to their owners.
History —Aug. 8, 1998, No. 207, § 2.001; Dec. 16, 2009, No. 171, § 2, eff. 30 days after Dec. 16, 2009.