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Venezuela Parliament approves law to boost housing construction after earthquakes
🇵🇾 Paraguay /Energy & Infrastructure

Venezuela Parliament approves law to boost housing construction after earthquakes

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement Approved/passed
  • Venezuela's Parliament approved a reformed law aimed at boosting housing construction and protecting buyers and builders.
  • The reform, previously the "Law Against Real Estate Fraud," is now the "Law for the Promotion and Protection of Housing Construction."
  • The new legislation includes measures like developer-established trusts and stricter penalties for non-compliance, following earthquakes that displaced thousands.

Venezuela's Parliament, under Chavista control, has approved a significant reform of a law designed to stimulate housing construction and enhance protections for both builders and buyers. This legislative action comes nearly two months after a double earthquake left over 17,900 people homeless and claimed nearly 6,500 lives.

Jorge Rodríguez, president of the National Assembly (Parliament), announced the transformation of the former "Law Against Real Estate Fraud" into the "Law for the Promotion and Protection of Housing Construction." He stated that the new law will facilitate quicker access to housing for buyers.

The reformed law comprises 40 articles that outline parameters for contracts, sales, and responsibilities. It also establishes oversight mechanisms to be conducted by the Ministry of Housing and Habitat. Key provisions include the mandatory creation of a trust fund by construction companies and requirements for more permits. Contracts must now detail the specific characteristics of the housing units and the execution timeline.

We have profoundly modified the previously called Law Against Real Estate Fraud and have turned it into a new law, it is the Law for the Promotion and Protection of Housing Construction.

— Jorge RodríguezExplaining the purpose and transformation of the legislation.

Penalties for non-compliance or violations, such as delays in document submission, permit issues, or disregard for preventive measures, have been strengthened. Fines can range from the equivalent of 300 to 54,000 times the value of the highest-valued currency, based on the daily exchange rate. The euro is currently the highest-valued currency in Venezuela, according to the Central Bank of Venezuela (BCV).

Previously, Rodríguez estimated a need for 25,000 new homes for those displaced by the magnitude 7.2 and 7.5 earthquakes on June 24. A biometric census was initiated in temporary camps to accurately assess housing needs. The acting president has pledged to provide housing for the affected population before the end of the year.

will allow buyers to 'access housing quickly'.

— Jorge RodríguezDescribing a key benefit of the new law.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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