VenEconomy // Venezuelans are left empty-handed

VenEconomy: The National Assembly has approved, following its first debate, an amendment to the Tenancy Act in force since 1999, turning it into a new Real Estate Leasing Act. Here are some of the changes introduced by the amendment:

Tenancy and the need for housing is a human right under the parameters of a socialist state.

Housing is a non-mercantile social right. No value will be given to the owner's right to dispose of his property or to exploit it by leasing it. Above that constitutional right is the right of the tenant to have a roof over his head and to not be left on the street.

Tenants may not be evicted from the homes they occupy under any circumstances, regardless of the time they have been living there. In the government's opinion, a person cannot be left on the street after having had a roof over his head, even if it is not his property.

Guaranteeing protection for tenants or leaseholders will be applicable in cases of buildings that are more than 20 years old. Tenants will have right of tenure and be entitled to have the property allocated to them.

An owner who rents a property will not be able to transfer title and possession or encumber said property except in favor of the tenant, who will be the only person entitled to acquire it. And if the tenant does not have the economic means to purchase it, he will be allocated the property to use and enjoy, but will no be granted property rights. The State, if it purchases the property, may also subsequently lease it or grant the tenant a mortgage to purchase it under the Housing Policy Act or other specific loan plans.

The State will set the price of the property, based on a percentage of the family income or wage. The real estate subject to this law will not be sold at market prices.

Part of the rental paid up until a given time will be considered a down payment when defining the sale of old properties. The idea is that the preferential right not be exercised when the owner decides to sell the housing unit, but before.

Real estate will not appreciate in value depending on supply and demand and inflation, but it will depreciate taking account of time of use. In calculating a fair price for the sale of old housing that has been rented, a depreciation of 1.20% a year could be applied, based on the durability of the construction materials and not taking account of inflation.

This law is another attack on private property, where owners and tenants run the risk of being left empty handed, and, what is worse, far from solving the housing problem, it will make it more acute.