Key Benefits:
ACT
(December 23)
Official Journal No. 43,827 of 23 December 1999
For which rules on housing are dictated, the objectives and general criteria to which the National Government must be subject to regulate a specialized system for its financing are identified, In addition, the Commission has proposed that the Commission should be in a position to take into account the situation of the Member States and the Member States.
COLOMBIA CONGRESS
DECRETA:
GENERAL PROVISIONS
ARTICLE 1o. LAW ENFORCEMENT ACT. This law sets out the general rules and outlines the criteria to which the National Government should be subject to regulate a specialised long-term, individual housing finance system, linked to the consumer price index and to determine special conditions for housing of urban and rural social interest.
PARAGRAFO. Without prejudice to the provisions of this law, the entities of the solidarity sector, the mutual savings and credit associations, the financial cooperatives, the employee funds, the National Fund of the Savings and any other entity other than credit institutions will be able to grant housing credits denominated in Colombian legal currency or in units of real value, UVR, with the characteristics and conditions approved by their (a) the management of the management body, provided that the depreciation systems do not provide for (a) capitalisation of interest, and no penalties for total or partial pre-payments.
ARTICLE 2o. OBJECTIVES AND CRITERIA OF THIS LAW. The National Government will regulate the specialized system of long-term housing financing to set the conditions necessary to make the constitutional right to housing decent, of compliance with the following objectives and criteria:
1. Protect the heritage of families represented in housing.
2. To protect and promote savings for the financing and construction of housing, while maintaining the public's confidence in the collection instruments and in the credit institutions issuing them.
3. Protect users from housing credits.
4. To promote the development of efficient long-term housing finance mechanisms.
5. Ensure that the granting of the credits and their attention consult the debtors ' ability to pay.
6. Facilitate access to housing in conditions of fairness and transparency.
7. Promote housing construction under financial conditions that make housing affordable for a greater number of families.
8. Prioritize housing programs and solutions for areas affected by natural disasters and terrorist acts.
ARTICLE 3o. REAL VALUE UNIT (UVR). The Real Value Unit (UVR) is a unit of account that reflects the purchasing power of the currency, based exclusively on the variation of the DANE-certified consumer price index whose value will be calculated in accordance with the methodology established by the Economic and Social Policy Council, Conpes. If the Conpes is to modify the UVR calculation methodology, this modification shall not affect the contracts already entered into, nor the mortgage bonds or securities issued in housing mortgage portfolio securitization processes already placed in the market.
National Government will determine the equivalence between the UVR and the Constant Purchasing Power Unit, UPAC, as well as the UPAC's transition regime to the UVR.
ARTICLE 4. PARTICIPANTS. Haran part of the specialized housing finance system:
1. The Superior Council of Housing.
2. Credit institutions that grant loans for this purpose.
3. Savers and investors.
4. The debtors.
5. The builders, and
6. Other actors carrying out activities related to housing finance such as mortgage funds, trust companies in their capacity as self-employed wealth managers, securitiating companies and other agents or intermediaries.
ARTICLE 5o. CONVERSION OF SAVINGS AND HOUSING CORPORATIONS. As of the current law, savings and housing corporations will have the nature of commercial banks. For this purpose, they shall have a period of thirty-six (36) months in order to make the necessary adjustments in order to adapt to their new nature.
Banking establishments holding shares in savings and housing corporations that are converted into commercial banks under the provisions of this law shall be required to participate in the five (5) years following the validity of this law.
ARTICLE 6o. SENIOR HOUSING COUNCIL. Create the Higher Housing Council, as the National Government's advisory body on all aspects related to housing.
The Council will be shaped like this:
1. The Minister of Economic Development or his delegate, who will preside over it.
2. The Minister of Finance and Public Credit or his delegate.
3. The Director of the National Planning Department or its delegate.
4. The Banking Superintendent or his delegate.
5. The Superintendent of Securities or its delegate.
6. The Superintendent of Societies or its delegate.
7. The Superintendent of Family Allowance or his delegate.
8. A representative of the popular housing organizations.
9. A representative of the builders.
10. A representative of the credit institutions.
11. A representative of the individual home credit users, chosen in accordance with the regulations issued by the National Government.
12. A representative of the workers, elected in accordance with the regulations issued by the National Government.
13. A representative of the Family Compensation Boxes, elected by the Superior Council of Family Allowance.
14. A representative of the national real estate sector, elected in accordance with the regulations issued by the National Government.
The Council will have a Technical Secretariat, in accordance with the provisions of the regulation, to whom it will be responsible, to calculate and disclose the daily value of the the Real Value Unit.
PARAGRAFO. The Council created in this article will assume the functions of the Higher Housing Council that is dealt with by Law 3a. of 1991.
ARTICLE 7o. MEETINGS AND FUNCTIONS OF THE SENIOR HOUSING COUNCIL. The Housing Board shall meet at least twice a year and shall have the following functions:
1. To advise the National Government on the formulation, coordination and implementation of the Housing Policy, particularly that of social interest.
2. Review costs for housing acquisition, such as charges for taxes, fees, fees.
3. To evaluate periodically the results obtained in the development of the programs for the implementation of the housing policy.
4. Ensure compliance with the objectives and criteria of the specialized long-term housing finance system, as enshrined in this law.
5. Establish and disclose statistics that affect housing construction and financing.
6. Ensure compliance with transfer and information conditions in the activities of the different entities involved in the specialized long-term housing finance system.
7. To recommend to the Board of the Bank of the Republic the intervention temporary in the margins of intermediation of the credits destined to the financing of housing.
8. Recommend the insurance and risks that must have the assets to be financed.
9. Recommend incentives for the acquisition and marketing of bonds and mortgage securities.
10. To submit annually to the Congress of the Republic a report on the quantitative and qualitative, urban and rural housing deficit, at the national and regional level, in a global and socio-economic stratum.
11. The others who assign the law to him.
HOUSING FINANCE RESOURCES
ARTICLE 8o. RESOURCES FOR HOUSING FINANCE. In addition to the operations authorized by the Organic Statute of the Financial System and without prejudice to the powers of the Banking and Securities Superintendents in their areas of competence, the Government National regulations will regulate new operations for housing finance, expressed in UVR, in accordance with the provisions of this law, and will establish special incentives to channel resources from paid savings to the a view to housing finance.
48 of Law 1753 of 2015. The new text is as follows: > Credit establishments are authorized to issue mortgage bonds which will be framed within the following guidelines.
1. They will be securities securities of credit content.
2. They shall be issued by credit institutions and shall be solely for the purpose of fulfilling credit agreements for the construction of housing and for their long-term financing.
3. Loans that obtain financing through the issuance of mortgage bonds must be guaranteed with first-degree mortgages, which will not be able to guarantee any other obligation.
4. Claims that have been financed by mortgage bonds may not be sold, transferred or transferred in any way, nor subject to any charge, nor used as guarantees by the issuer of the respective bonds, with the exception of indicated in the following article.
However, the issuer credit facility may agree with another credit facility that the credit institution assumes the obligation to pay the bonds, for which the corresponding mortgage portfolio will yield, in accordance with the rules that the The National Government shall issue an issue with the approval of the Banking Superintendence, prior to the approval of the Advisory Board and the consent of the Assembly of the bondholders.
5. The issuer, or who has assumed the obligation to pay the bonds, shall be responsible for the administration and management of the assets to be financed by them, to the holders of such bonds. For this purpose, you must enter into an administrative contract.
6. The Banking Superintendency shall establish accounting disclosure obligations that ensure the public's adequate knowledge of the value of that part of the assets which, however, shall not be included in the balance sheet of the credit institutions. they are part of the general garment of the creditors of the same, in the event of liquidation of the issuing institution, in accordance with the provisions of the following Article.
7. The Superintendency of Securities will point out the requirements and conditions for the issuance and placement of the bonds that are issued in development of what is planned, which will have to promote its homogeneity and liquidity. In any event, the bonds referred to in this Article shall be dematerialised and may be traded through the Stock Exchanges.
ARTICLE 10. A SETTLEMENT EVENT OF A CREDIT ESTABLISHMENT HAVING MORTGAGE BONDS IN CIRCULATION. Where, by any circumstance, it is decided to liquidate a credit establishment that has in circulation mortgage bonds, or has assumed the the obligation to pay them in accordance with the provisions of Article 4 (4) of the previous Article shall apply in relation to mortgage bonds, the following rules:
1. It shall be understood that both the credits financed by those bonds, and the funds raised to apply them and the guarantees or rights that they provide or support, belong to the bondholders and not to the institution in liquidation. For the purpose, the credits and other assets belonging to the set of holders of each of the issues shall be identified, to which they shall be given, for all purposes, separate treatment.
In the case provided for in this Article, the mortgage loans supporting the bonds shall not be part of the general garment of the issuer's creditors or who has assumed the obligation to pay them in the settlement process and, therefore, they shall be excluded from the mass of goods of the same for any legal effect.
2. In no case shall the entity in liquidation yield, with the responsibility of paying the bonds, the mortgage portfolio.
3. The Superintendency of Securities will convene the assemblies of holders of such securities to decide, in respect of each issue, either on the disposal of the credits and the corresponding total prepayment of the respective bonds, or on the transfer to another credit establishment or a trust company in its capacity as an independent asset manager of the bond management contract, including the transfer of the claims and their respective guarantees, and delivery of the funds raised and the amount outstanding and of the other guarantees or rights granted to them by the or support. In the event of the transfer of the administrative contract, the transferee shall only be responsible for the administration of the issue.
4. If you opt for the disposal of the credits granted under this system and for any reason will remain a remnant after the payment of the mortgage bonds, the mortgage will be returned to the entity in liquidation.
PARAGRAFO 1o. In case the sale of the mortgage assets or the disposal of the management contract is decided, the bondholders will be understood to lose their quality of creditors of the entity in liquidation.
In the event that, within the 90-day period, the transfer of the contract of administration of the issue or the sale of the assets is not decided, the provisions of this Article shall not apply and, for the same reason, the mortgage assets shall be reintegrate into the settlement mass and the bondholders shall be understood to be recognised by their respective creditors in the settlement process.
PARAGRAFO 2o. If any credit establishment or a trust company in its capacity as an autonomous asset manager accepts the assignment of the management contract, it must inform the centralized repository of securities where the bonds are entered, which such issue only has the guarantee of the mortgage portfolio.
PARAGRAFO 3o. For all legal purposes, the operations referred to in the third paragraph of this Article shall be understood to be perfected with the sole agreement between the legal representative of the bondholders and the new administrator or the acquirer of the mortgage portfolio, as the case may be. Such an agreement shall be sufficient for the new administrator or the new owner of the appropriations to be entitled to administer, charge and even execute judicially the guarantees given or the appropriations in question, with the powers that the former administrator, or the creditor, as the case may be.
ARTICLE 11. MARKET MAKERS. The National Government shall establish conditions for the legal persons subject to the supervision and control of the Banking or Securities Superintendents, which have the financial capacity and the liquidity that determines the national government, to act as originators and as market creators of the bonds and mortgage securities referred to in this law. For these purposes, the National Government will design and adopt mechanisms that allow the provision of interest rate, liquidity and credit risk coverage, among others.
The National Government will create and promote the necessary mechanisms to secure the secondary market for bonds and mortgage securities and the conditions under which such mechanisms will be offered.
TITULARIZATIONS
ARTICLE 12. MORTGAGE PORTFOLIO SECURITIZATION AND HOUSING LEASING CONTRACTS. 71 of Law 1328 of 2009. The new text is as follows: > Without prejudice to the legal authorization of trust companies, credit institutions and entities described in article 1or this law may be entitled to issue securities representative of (i) mortgage portfolio corresponding to disbursed mortgage loans and future mortgage loans in the development of contracts for the sale of future mortgage loans, and (ii) leasing contracts housing, to finance construction and housing acquisition, including their guarantees or representative titles of rights in respect of the same and the guarantees which support them and the immovable property which constitute their object in the case of housing leasing contracts, where they are intended to be used in the capital market. Such securities shall only be provided by the respective issuers, with guarantees or commitments in respect of the management and financial performance of the assets, which are provided for in the relevant emission regulations.
Credit institutions will be able to provide guarantees to the representative titles of construction real estate projects.
Credit institutions and entities described in Article 1or this law may also transfer their mortgage portfolio corresponding to disbursed mortgage loans and loans. Future mortgage on the development of contracts for the purchase and sale of future mortgage loans, including guarantees or rights on them and their respective guarantees, as well as housing lease contracts including Buildings which constitute their object, to securitised companies, to companies In order to ensure that they issue mortgage securities subject to the rules applicable to the securitization of such assets, they shall be subject to the same conditions as those of the national government. mortgage assets. Mortgage securities issued on the basis of housing lease contracts shall be subject to the same rules, conditions and benefits applicable to securities issued in the development of mortgage portfolio securitization processes in the terms defined in this law and in its relevant regulatory standards.
When in development of this authorization assets are mobilised directly or transferred for subsequent mobilisation, the assets transferred shall not be deemed to be returned to the originator's or the issuer's assets, in the case of in which the latter is in concordat, settlement, or any other process of a bankruptcy, in accordance with the provisions of Article 68 of Law 964 of 2005 or in the standard that replaces it or modify.
The National Government will point out the requirements and conditions for the issuance and placement of the different securities issued in the process of securitization of mortgage assets, promoting their homogeneity and liquidity. In any event, the securities referred to in this Article shall be dematerialised.
PARAGRAFO. The transfer of any credit, warranty, contract or right over the same, to be carried out in the development of processes for the mobilization of mortgage assets in accordance with the provisions of the present Article 1 shall not produce any effects of novation and shall be understood to be exclusively refined with the transfer of the title representative of the relevant obligation or by the assignment of the housing lease contract. Such transfer shall not generate any rights or notarial fees or stamp duty.
In the processes of securitization of housing leasing contracts, the transfer of ownership of the immovable property subject to such contracts shall be perfected in the head of the securitiative companies, the trust companies or the of the other institutions authorized by the National Government, through the assignment of the housing lease contract. For this purpose, the corresponding transfer document must state that it has the sole basis for the development of a process of securitization of the housing lease contract. Public deed shall only be necessary when the transfer of the domain of the property is carried out in the form of housing leasing in favour of the locatary, once the acquisition option is exercised and its value is paid.
The Financial Superintendence will have, in respect of the processes of securitization of assets referred to in this article, the powers provided for in the last paragraph of article 15 of Law 35 of 1993.
ARTICLE 13. RIGHTS OF HOLDERS OF MORTGAGE SECURITIES. In no case shall the securities issued in the securitization processes grant their holders the right to request or initiate divisive processes with respect to the universality or mass constitute the underlying claims and/or the guarantees that they provide for them.
ARTICLE 14. COMPANIES ENTITLED. The companies that are entitled to this law will have as their exclusive social object the securitization of mortgage assets and will be subject to the supervision and control of the Superintendency of Securities.
ARTICLE 15. AUTHORIZATION TO THE GOVERNMENT. Authorize the Nation so that, directly or through the Fund of Guarantees of Financial Institutions, participate in the capital of one or more titularizing societies.
TAX REGIME FOR MORTGAGE BONDS AND REPRESENTATIVE MORTGAGE PORTFOLIO SECURITIES
ARTICLE 16. TAX BENEFIT FOR LONG-TERM SAVINGS BOND YIELDS FOR HOUSING FINANCE. 81 of Act 964 of 2005. The new text is as follows: > They will be exempt from income tax and complementary, the financial returns caused during the validity of securities issued in mortgage portfolio securitization processes and mortgage bonds. of the purpose of this law, provided that the time limit laid down for its expiry is not less than five (5) years. The securities and bonds provided herein may be divided into capital and/or interest-bearing coupons. In any event, the securities or bonds must include conditions for the repayment of the loans granted to them.
For the purposes of enjoying the benefit of this article, securities or bonds may not be repurchased or redeemed by their issuer.
Will profit from the benefit here enshrined in securities issued in mortgage portfolio securitization processes and mortgage bonds covered by this law, which are placed on the market within eleven (11) years of the date of issue of this law.
In no case shall the inflationary component or value maintenance of such securities or bonds constitute a taxable income.
LONG-TERM HOUSING FINANCE REGIME
ARTICLE 17. CONDITIONS OF THE INDIVIDUAL HOUSING CREDITS. Without prejudice to the provisions of the first article of this law, the National Government shall establish the conditions for long-term individual housing credits, which shall have to be exclusively referred to as UVR, in accordance with the following general criteria:
1. To be destined for the purchase of new or used housing or the construction of individual housing.
2. To have an interest rate, calculated on the UVR, that will be charged in due form and cannot be capitalized. This interest rate shall be fixed for the entire duration of the credit, unless the parties agree to a reduction of the credit and shall be expressed solely and exclusively in terms of an effective annual fee.
3. To have a period for the depreciation of five (5) years at least and thirty (30) years at the latest.
4. To be guaranteed with first-degree mortgages constituted on funded housing.
5. To have a maximum amount that does not exceed the percentage, which the National Government establishes in general, on the value of the respective housing unit, without prejudice to the rules provided for the financing of housing of social interest subsidiable.
6. The first instalment of the loan will not be able to represent a percentage of the higher family income to which the National Government establishes, by regulation.
7. Depreciation systems will have to be expressly approved by the Banking Superintendence.
8. The appropriations may be pre-paid in whole or in part at any time without penalty. In the case of partial pre-payments, the debtor shall have the right to choose whether the amount paid decreases the value of the quota or the period of the obligation.
9. In order to be granted, the credit establishment must obtain and analyse the information concerning the respective debtor and the guarantee, on the basis of a technically suitable methodology which allows the foreseeable development of the price to be projected the property, as well as the debtor's income, in such a way that it can reasonably be concluded that the credit for its entire life could be timely and sufficiently guaranteed.
10. Be insured against risks to be determined by the National Government.
PARAGRAFO. Notwithstanding the provisions of this article, credit institutions and all other entities referred to in Article 1or. of this law, may grant housing credits denominated in Colombian legal currency, provided that such credit operations are granted with a fixed interest rate throughout the term of the loan, the non-payment systems (a) the payment of the obligation at any time without any penalty shall be expressly accepted and expressly accepted. All other provisions laid down in this law for appropriations for the financing of individual housing shall apply to these operations.
In addition, at the request of the debtor, the obligations set out in UPAC by credit institutions and by all other entities referred to in Article 1or. of this law, may be renamed in Colombian legal currency under the conditions set out in the previous paragraph.
ARTICLE 18. DISBURSEMENTS. The appropriations referred to in the previous Article may be disbursed by credit institutions in legal currency or at the request of the debtor, in mortgage bonds expressed in UVR, in the terms of the Banking and Securities Superintendences, each within the scope of their respective competences. In any case, the credits for the financing of housing of social interest will have to be disbursed in Colombian legal currency and can be granted in Colombian legal currency.
ARTICLE 19. INTEREST ON ARREARS. In the long-term housing loans covered by this law, interest on arrears is not presumed. However, when they are agreed, it is understood that they will not be able to exceed one and a half times the agreed remuneration interest and may only be charged on the expired quotas. As a result, housing credits may not contain accelerated clauses that consider the entire obligation to be expired until the corresponding legal claim or the failure to comply with the arbitral justice in the terms set forth in the corresponding arbitration clause. The moratorical interest includes the remuneration.
ARTICLE 20. CONTRACTUAL HOMOGENEITY. The Banking Superintendence shall establish uniform conditions for the content of the terms of the credit and its guarantees, by which the active financing operations of the long-term individual housing.
During the first month of each calendar year, credit institutions will send all their home mortgage credit debtors for clear and understandable information, including at least one projection of what is interest payable in the next year and those that will be charged with the monthly fees in the same period, all in accordance with the instructions that the Banking Superintendency gives annually. Such a projection shall be accompanied by the assumptions made for carrying out the project and shall be indicated in an express manner, that the changes in these assumptions will necessarily imply modifications to the projected amounts. On the basis of this information, debtors may apply to credit institutions for the first two months of each calendar year for the restructuring of their claims to adjust the repayment plan to their actual capacity. payment, if necessary, to extend the period originally planned for its total cancellation.
ARTICLE 21. INFORMATION DEER. Credit institutions shall provide information that is true, sufficient, timely and easy to understand for the public and for debtors with respect to the terms of their claims, as determined by the the Banking Superintendence.
During the first month of each calendar year, credit institutions shall send to all their home mortgage credit debtors an information under the terms of this Article.
ARTICLE 22. FAMILY ASSETS. The debtors of individual housing credits that comply with the provisions of this law may constitute, on the acquired properties, the family patrimony that is not foreclosed by the total value of the respective property, in the form and conditions laid down in Articles 60 of Law 9a. of 1989 and 38 of Law 3a. of 1991.
The provisions of the foregoing paragraph shall only take effect when the housing credit has been granted at least 50% (50%) of the value of the property. The family assets thus constituted shall be forfeited when the balance of the debt represents less than 20% (20%) of that value.
Without prejudice to the provisions of the foregoing paragraph, once the family patrimony is established and the debt is in force, it cannot be lifted without the authorization of the mortgage creditor. Such authorization shall be required in the form of public writing by which the act is solemnly solemnly.
ARTICLE 23. NOTARIAL RIGHTS AND REGISTRATION FEES. The notarial rights and registration fees that are caused by the creation or modification of mortgage taxes, in favor of a participant in the specialized system of financing housing, to ensure an individual housing credit, will be settled at seventy per cent (70 per cent) of the applicable ordinary rate. The cancellation of mortgage credit charges for housing shall be considered an unquantum act.
For the purposes of notarial rights and registration fees, the constitution of the family estate in which Article 22concerned, whose inimilitability shall be deemed to be lifted only in favour of the creditor the mortgage that financed its acquisition, or who succeeds it in its rights, in all cases will be considered as an unquantum act.
ARTICLE 24. ASSIGNMENT OF CREDITS. 38 of Law 1537 of 2012. The new text is as follows: > At any time, individual home mortgage loans and their guarantees may be transferred, at the request of the debtor, to another financial institution or to any of the entities referred to in the paragraph of article 1or of this law.
For this purpose, the entities referred to in Article 1or this law or the securitization companies or trust companies, as the case may be, shall authorize, within a period not exceeding ten (10) working days, the transfer of the credit and its guarantees, once the debtor delivers the binding offer of the new creditor. The financial superintendence will regulate the conditions for legalisation of disposals.
Such a transfer shall be understood to be exclusively refined with the transfer of the title representative of the corresponding obligation and shall have the effects provided for by Article 1964 of the Civil Code. In any case of a mortgage guarantee in accordance with the provisions of this Article, it shall support the credit paid by the new creditor for the payment of the transfer.
The assignment of credits will not generate notarial rights, registrals and stamp duties.
ARTICLE 25. CREDIT FOR HOUSING CONSTRUCTION. For loans granted to finance housing construction projects, the provisions of Article 17, numerals 2, 4, and article 18 above. The National Government shall establish the other conditions for the granting and disbursements of such claims, as well as the subrogation systems in so far as the constructed dwellings are sold.
HOUSING OF SOCIAL INTEREST
ARTICLE 26. The territorial planning plans must include ample and sufficient areas for the construction of all types of social housing defined by the development plans and by the government regulations in such a way as to guarantee the coverage of the housing deficit for housing of social interest.
order to guarantee the reactivation of the construction for the benefit of the acquirers, it will extend until June 30, 2000, the deadline for the municipalities, districts and the island of San Andres to adopt the plans for the (3) months the periods referred to in Law 505 of 1999, except those of the article 10 of the Law, shall be extended for three (3) months.
The National Government will establish incentives for the allocation of resources for housing, equipment and road infrastructure and services, which do not constitute transfers, aimed at municipalities and districts that have adopted their territorial arrangements before 30 June 2000.
PARAGRAFO 1o. For those municipalities that are held after the enactment of this law, the time limit for up to two (2) years, counted from the election of the first municipal mayor to be adopted the plans of territorial planning prior to the compliance with the legal and regulatory requirements established for such effects and referred to in the Law 388 of 1997 and the concordant ones that modify or add it.
PARAGRAFO 2o. Extend the deadline for up to one more year, counted from the current law for the municipalities that have been erected within the year before the enactment of this same law, so that adopt the plans of territorial planning prior to the compliance with the legal and regulatory requirements established for such effects and referred to in Law 388 of 1997 and the concordants that modify it or additionen.
ARTICLE 27. CRITERIA FOR THE REGIONAL DISTRIBUTION OF THE RESOURCES OF THE HOUSING ALLOWANCE OF SOCIAL INTEREST. The national resources of the family allowance for housing of social interest provided for in Law 3a. From 1991, they will be distributed as established by the regulations that the National Government will issue for the purpose, which must include, among others, technical criteria that maximize the social benefits of the respective investments, contribute Regional to equity, allow to address the calamities caused by natural disasters, enhance the programs of VIS by self-management or associative systems and the improvement of the housing VIS.
ARTICLE 28. OBLIGATION ON CREDIT INSTITUTIONS TO ALLOCATE RESOURCES TO THE FINANCING OF HOUSING OF SOCIAL INTEREST. Financial institutions shall allocate annually, for the five (5) years following the term of this law, as At least 25 percent (25 percent) of the increase in the gross housing portfolio, the granting of credit to finance the construction, improvement and acquisition of housing of social interest. The National Government shall regulate the percentage and special conditions to be used for the housing of the disabled.
The obligation provided for in the first subparagraph of this Article shall be deemed to be fulfilled if the respective entities demonstrate that during the stipulated period, they made investments in mortgage bonds or mortgage securities originating in (a) a housing portfolio securitization process of a social interest that is subsidized by the same amount.
PARAGRAFO. For all housing of social interest the interest rate may not exceed eleven (11) points during the year following the validity of this law.
ARTICLE 29. DESTINATION OF HOUSING SUBSIDIES OF SOCIAL INTEREST. <Paragraph 1o. with the title modified by article 1 of Law 1114 of 2006. The new text is as follows: > In accordance with article 51 and article 359 paragraph 2, of the National Constitution, of the of the National Budget will be allocated an annual sum of at least equivalent to one million four thousand nine hundred one (1,004,901) minimum monthly legal salaries in force, in order to allocate them to the grant of Housing of Interest Social Urban and Rural. The budget item in question shall not be subject to any budget cut cases.
To comply with Article 51 of the Colombian Constitution, state or mixed entities that promote, finance, subsidize or implement housing plans The social interest subsidies, directly or indirectly, will design and implement urban and rural housing programs, especially for people who have up to two (2) minimum wages and for the unemployed. These programmes will be carried out in different ways in the terms of Law 3a. of 1991.
PARAGRAFO 1o. <Paragraph modified by article 1 of Law 1114 of 2006. The new text is as follows: > The Government will allocate annually 20% of the appropriate budgetary resources for rural VIS. At the end of each term if the total of the resources in the rural housing had not been placed, the remainder will be used to meet the urban demand.
PARAGRAFO 2o. <Paragraph added by article 1 of Law 1114 of 2006. The new text is as follows: > Officers, noncommissioned officers and professional soldiers of the Military Forces; the officers, non-commissioned officers and members of the executive level, agents of the National Police; civilian personnel serving the Ministry of National Defense, Military Forces, and Police National; official teaching staff; teachers linked to establishments Private education; independent workers and those who earn a full salary will be able to join the National Savings Fund. Membership shall be made upon request by the person concerned through voluntary savings in accordance with the regulations issued by the National Government.
In no case will this voluntary savings make part of the ordinary savings that the Military Housing Fund make of the officers, noncommissioned officers, executive level, agents, professional soldiers, and civilian or non-uniformed personnel of the Ministry of Defense. National, Military Forces and National Police. The cease-fire of this personnel will continue to be transferred to the Military Housing and Police Promoter Fund for its administration, as set out in Decree 353 of 1994, as amended by Law 973 July 2005.
Colombians resident abroad may join the National Savings Fund under the same conditions provided for in this paragraph.
PARAGRAFO 3o. < *Text corrected in the terms of Statement C-458-15 ><Paragraph as modified by article 1 of Law 1114 of 2006. The new text is as follows: > Municipal and district authorities will require all housing projects to make it compulsory to have one percent (1%) of homes built and in projects of less than one hundred (100) housing one of them for the population disabled < * in disability situation >. Housing for the disabled shall not have any architectural barriers within it and shall be adapted for such population, in accordance with the regulations to be issued by the National Government for the purpose.
ARTICLE 30. GUARANTEES FOR MORTGAGE BONDS TO FINANCE PORTFOLIO VIS SUBSIDIABLE AND FOR SECURITIES ISSUED IN PROCESSES OF SECURITIZATION OF PORTFOLIO VIS SUBSIDIABLE. The National Government, through Fogafin, will provide guarantees for mortgage bonds for to finance a subsidized VIS portfolio and for securities issued in processes of securitization of a subsidiary VIS, issued by credit institutions, in terms and under the conditions specified by the National Government.
The resources of the housing allowance of social interest may be allocated to the granting of these guarantees. The amount of such resources shall be that corresponding to the premium assumed or to the payment of the contingency, where this is the case, and shall be in addition to the sums allocated in the national budget for the grant of direct benefit to the Housing acquirers of subsidized social interest.
The board of directors of the Inurbe, with the favorable vote of the Minister of Economic Development, will determine the amount of additional resources that may be granted in the form of a guarantee for the purposes expressed in the previous paragraph.
They may also be granted in the form of government commitments to meet a percentage of each of the periodic fees charged by the debtors of housing loans of social interest or to cover part of the lease fee in the terms and conditions established by the National Government.
PARAGRAFO. When social interest subsidies are granted in the form of guarantees, the corresponding contingency must be estimated on technical bases, for the purposes of quantifying the corresponding allocation.
ARTICLE 31. NOTARIAL RIGHTS AND REGISTRATION FEES. The notarial rights and registration fees that are caused by the creation or modification of mortgage taxes, in favor of a participant in the specialized system of financing housing, to ensure an individual housing credit of unsubsidized social interest, will be settled at forty per cent (40%) of the applicable ordinary rate.
The notarial rights and registration fees that are caused by the creation or modification of mortgage charges, in favor of a participant in the specialized housing finance system, to guarantee a credit (a) individual housing of social interest, which, by reason of its amount, may be the subject of direct subsidy, shall be settled down to 10% (10%) of the applicable standard rate.
For the purposes of notarial rights and registration fees, the constitution of the family estate in which Article 22concerned, whose inimilitability shall be deemed to be lifted only in favour of the creditor the mortgage that financed its acquisition, or who succeeds it in its rights, in all cases will be considered as an unquantum act. Similarly, the cancellation of charges will be considered an act without value.
PARAGRAFO. As provided for in this Article, it shall apply without prejudice to the rules establishing more favourable rates, in respect of acts relating to housing of social interest.
ARTICLE 32. FINANCE RESOURCES FOR HOUSING OF RURAL SOCIAL INTEREST. Destinese 20 percent (20%) of the resources from the forced investments that Finagro has, to the financing of housing of rural social interest, either for the the construction of programs or for the acquisition, improvement and individual construction in its own place, under the conditions that the National Commission of Agricultural Credit will establish for the purpose, subject to the provisions of the Superior Council of Housing.
PARAGRAFO 1o. In those cases where the resources provided for in this article are not used for reason of the demand, Finagro may allocate them to the agricultural promotion through the financing of the activities Agricultural products in accordance with the provisions in force and their social object.
PARAGRAFO 2o. For the purposes of this article, Finagro will permanently carry out activities aimed at promoting this line of financing.
ARTICLE 33. In the case of a pension scheme, the amount of the allowance is paid to the person who is entitled to the benefit of the pension. the case of a person who is a member of the institution, he or she is entitled to the benefit of the pension. their allocation.
ARTICLE 34. APPLICATION TO HOUSING FINANCE LOANS OF SOCIAL INTEREST. The provisions of this Law shall apply to the loans for the construction and financing of housing of social interest in which it does not contradict its provisions. special.
For the purposes of this law, housing of social interest shall be understood to satisfy the requirements laid down by the legislation in force in this field.
CONFLICT RESOLUTION MECHANISMS
ARTICLE 35. ARBITRATION AGREEMENT.
ARTICLE 36. ARBITRATION PROCEDURE.
ARTICLE 37. COSTS AND EXPENSES.
TRANSITION REGIME
ARTICLE 38. DENOMINATION OF OBLIGATIONS IN UVR. Within three (3) months following the date of this law, all obligations expressed in UPAC will be expressed in UVR, according to the equivalence determined by the National Government. This term shall be expired without the documents in which the obligations have been amended, shall be understood as expressed in UVR, by the Ministry of the present law.
PARAGRAFO. Financial institutions are empowered to redeem the securities denominated in UPAC in advance. Similarly, at the choice of the debtor, savings accounts and other liabilities, in UVR or in pesosmay be.
ARTICLE 39. ADEQUACY OF THE CONTENT OF THE TERMS AND CONDITIONS OF THE APPROPRIATIONS. The credit institutions must adjust the content of the conditions of the long-term individual housing loans, paid out by the before the date of validity of this law to the provisions laid down therein. For this purpose, they will have a period of up to one hundred and eighty (180) days counted from the time of this law.
Notwithstanding the foregoing, the promissory notes by which the debts are instrumented, as well as the guarantees thereof, when they are expressed in UPAC or in pesos, will be understood by their equivalence, in UVR, by the ministry of this law.
PARAGRAFO 1o. The reliquidation of the credits in the terms of this chapter and the corresponding documents in which the conditions of the individual housing credits are established in the long term, will constitute a novation of the obligation and therefore will not cause stamp duty.
PARAGRAFO 2o. Within three (3) months of the duration of this law, and at the request of who at December 31, 1999, can accredit that it is attending a housing credit that is in the name of another natural or legal person, may require the financial institutions to update the information and to proceed to the respective subrogation, provided that demonstrate that they have the right payment capacity. Under this Article, the appropriations may be the subject of the appropriations provided for in this Article.
ARTICLE 40. SOCIAL INVESTMENT FOR HOUSING. In order to contribute to making the constitutional right to housing cash, the State shall invest the sums provided for in the following Articles to pay to the obligations in force that have been contracted with credit institutions, which are intended for the financing of individual housing in the long term and to contribute to the formation of savings to form the initial share of debtors who have delivered their payments in payment of their housing, in the terms provided for in Article 46.
PARAGRAFO 1o. The credits referred to in this article will only be made for one credit per person. Whenever a person has individual long-term credit for more than one home, he/she must choose the person on which the credit will be paid and inform the credit institution or the respective credit institutions of which he/she is liable. If there is more than one credit for the financing of the same dwelling, the credit may be made on all of them. If the credit has been restructured in the same entity, the relief shall be effected taking into account the date of the originally agreed credit.
PARAGRAFO 2o. Who accepts more than one credit in violation of the provisions of this numeral, must return in a term of thirty (30) days the credits that it would have received in development of the provisions of this law and the (i) a decision on the development of the system; if it does not do so, it will incur the criminal penalties established for the diversion of public resources. The refund of the sums paid outside the period mentioned above must be carried out with default interest, calculated at the maximum rate allowed by the law.
ARTICLE 41. (a) the appropriations referred to in the previous Article be made on the balances in force at 31 December 1999 of the loans granted by the credit institutions for the financing of the long-term individual housing as well:
1. Each credit facility will take the balance in pesos at December 31, 1999, of each of the loans, that will be kept up to date on the last banking business day of the year. 1999.
For the purposes of determining the total balance of each obligation, the value added on the same date shall be added to the credit granted by the Financial Institutions Guarantee Fund, Fogafin, pursuant to the provisions of Articles 11 and 12 of the Extraordinary Decree 2331, 1998, where applicable.
2. The credit establishment shall provide the total balance of each of the credits, for which the UVR shall be used by the UVR for each of the days between 1 or 1. From January 1993 to 31 December 1999, I published the Ministry of Finance and Public Credit, in accordance with the methodology set out in Decree 856 of 1999.
3. The National Government will pay to the obligations that are on the day of December 31, 1999 the total amount of the difference that yields the relief indicated in the (a) number of the preceding, by the delivery of the securities referred to in paragraph 4. of this article, orin the manner determined by the National Government.
PARAGRAFO 1o. For the reliquidation of credit balances for long-term individual housing finance, granted by credit institutions in legal currency, will be established. equivalence between the DTF and the UPAC, in terms determined by the National Government, in order to compare the behavior of the UPAC with that of the UVR, for purposes which have the same markdown as that corresponding to the credits agreed to in UPAC.
PARAGRAFO 2o. Credit establishments will have a period of three (3) months, counted from this law to perform the relief. The interest of arrears to which there is a place by way of amortization fees not served during this period, will be discounted from the value that the delinquent debtor will correspond to him for the credit for the reduction of the balance of his credit.
PARAGRAFO 3o. If the beneficiaries of the credits provided for in this article are in arrears of more than twelve (12) months, the balance of the respective obligation shall be increased by the value of the payment received. The establishment of credit shall return to the national government securities referred to in the fourth paragraph of this Article for that value. In any event, if the credit is unpaid and the guarantee is made effective, the credit establishment shall return to the National Government the proportional share corresponding to the sum collected.
PARAGRAFO 4o. The National Government is authorized to issue and deliver Treasury Titles, TES, denominated in UVR and with the performance that it determines, with monthly payments, in the amounts required to meet the cancellation of the sums to be paid to the mortgage loans. These titles will be issued to ten (10) years. These operations will only require the validity of the decree ordering its issuance and determine the terms of the securities, which may be issued by future vigencies and based on the resources from the forced investments. established by this law.
ARTICLE 42. CREDIT TO THE CREDIT THAT IS IN ARREARS. The mortgage debtors that are in arrears as of December 31, 1999, will be able to benefit from the credits provided for in the article 40, whenever the debtor manifests in writing to the financial institution its desire to avail itself of the credit relief, within ninety (90) days of the date of the law.
Fulfilled the above, the financial institution will proceed to write off the default interest and restructure the credit if necessary.
In turn, the National Government will pay these obligations the total amount of the difference that will yield the debt relief, carried out in accordance with the provisions of Article 2 (2) of the href="ley_0546_1999.html#41"> 41 above, by delivery to the respective credit establishment of the titles referred to in the fourth paragraph of the same article 41.
PARAGRAFO 1o. If the beneficiaries of the credits provided for in this article are in arrears of more than twelve (12) months, the balance of the respective obligation shall be increased by the value of the payment received. The establishment of credit shall return to the national government securities referred to in paragraph 4. of article 41, by that value. In any event, if the credit is unpaid and the guarantee is made effective, the credit establishment shall return to the National Government the proportional share corresponding to the sum collected.
PARAGRAFO 2o. The reliquidations referred to in this article will also apply to them the numeral 1 of the previous article 41 , as well as that provided for in the 1o paragrafes. and 2o. of the same article.
PARAGRAFO 3o. Debtors whose obligations are expired and on which judicial processes are placed that within ninety (90) days Following the entry into force of this law, you will be entitled to the reliquidation of your mortgage credit, you will be entitled to request suspension of the aforementioned processes. Such suspension may be granted automatically by the respective judge. In the event that the debtor agrees {within the time limit} the relief of his/her obligation, in accordance with the provisions of this article, the process will be terminated and his/her file will proceed without further processing. If within the year following the restructuring of the credit the debtor incurs in arrears again, the processes will be restarted at the request of the financial institution and with the demonstration of the default, at the stage where they were at the time of suspension, and after updating their value.
