P.R. Laws tit. 23, § 5048
The Martín Peña Canal Land Trust, hereinafter, the “Land Trust’” is hereby created as a private entity in perpetuity, which shall consist of all the lands transferred to the Corporation in accordance with this chapter, especially pursuant to §§ 5045 and 5046 of this title, whose ownership title is herein recognized, and of any other property it may acquire in the future. The Corporation shall promulgate the General Regulations for the Operations of the Martín Peña Canal Land Trust. Said regulations shall specify the manner in which the lands of the Land Trust shall be used and the participation of the Corporation and all other public and private entities in the process of identifying the lands eligible to become part of such Land Trust. It shall also specify the mechanism to appoint the members of the Board of Trustees of the Land Trust.
The Board of Trustees of the Land Trust shall serve as the fiduciary agent of the Trust. This shall not prevent the transfer of the entrusted property’s custody to any Trust institution incorporated under the laws of the Commonwealth of Puerto Rico, so that it may act as custodian of said property and its returns under terms that are compatible with the goals and provisions of this chapter. The Land Trust is hereby created with independent juridical personality, and its Board of Trustees shall have representation of the residents delegated by the G-8. The funds of the Land Trust shall be kept separately from other funds under the custody of the Corporation and maintained where the Board of Trustees of the Trust so determines, pursuant to the powers granted by this chapter and the regulatory provisions adopted pursuant thereto. The Land Trust shall retain ownership rights to the land, and may only sell or transfer the construction rights; long-term leases with inheritance rights may also be granted. The owners of property on lands of the Trust may exclusively own the structure, but not the land on which it is built. The recognition of surface rights shall be attested in a public deed to be recorded in the Property Registry within a term not to exceed twenty-four (24) months after the approval of this act.
(a) The Land Trust shall have the following goals:
(1) To help address the ownership rights issue of many District residents through common land ownership.
(2) To handle the physical or economic displacement of the low income residents that arises from the urban reconstruction projects with fairness, avoiding the disintegration and displacement of the community.
(3) To guarantee affordable housing in the District.
(4) To acquire and possess lands on behalf of the community, thus increasing local control over the land and avoiding absentee owner decision-making.
(5) To make possible the participation of the residents and the strategic investment of the private sector, and redistribute with fairness the increase in land value through the participating bonds mechanism, diversifying the sources of income of the families and reinvesting in the District.
(6) To make possible the reconstruction and valuation of the urban spaces, pursuant to the public policy established by this chapter, and the development and use of land plans adopted by the Planning Board for the District.
(7) To recover the investment of the Commonwealth in the urban reconstruction of the District to create a revolving fund that allows reinvestment in the District or in other locations with similar purposes.
(b) To meet these goals, the Land Trust may:
(1) Make the parceling convenient to the general interest in accordance with the Land Use Plan and the Integrated Development Plan, and impose restricting conditions when necessary.
(2) Acquire empty lots and lands in order to build affordable housing, whether through the public nuisance process or through eminent domain.
(3) Acquire ruined structures and debris to build affordable housing, whether through the public nuisance process or through eminent domain.
(4) Acquire the public land in the District by means of ownership transfer from the public entity to the Land Trust for the purpose of carrying out the Integrated Development Plan.
(5) Acquire the easement lands and all the remnants produced by urban improvements.
(6) Acquire by means of ownership transfer the lands and lots of public origin determined by the study directed in § 5045 of this title and to protect the patrimonial property of Puerto Rico in the District.
(7) Ensure that all the lands of the Land Trust are registered or submitted to the corresponding Property Register, and prepare the necessary documents such as the registration blueprints.
(8) Effectively manage the lands with fairness on behalf of the residents of the District.
(9) Render annual reports and all the documents required by the Commonwealth for corporations.
(10) Appraise the land at the time of the transfer or acquisition thereof and authorize, underwrite, and issue participation bonds on the land’s value to the Commonwealth based on public investment in the improvements; to citizens, by means of exchange of their land for shares according to either its weighted average value using equity criteria or its contribution to the planned development; and to other residents, by means of payment plans to be compensated with the interest corresponding to the participation bonds issued. These shares shall be granted in accordance with their weighted average value using equity criteria. The Land Trust may also grant participation bonds to individual, non-resident citizens and business persons for their investment and contribution to the planned development. A portion of the returns on the public sector shares shall be reinvested in the District. Bonds issued in favor of citizens shall receive a fixed interest established according to prevailing market rates and payable as provided. The Land Trust shall have preferential rights to the acquisition of shares. There may be a limit for the transfer or negotiation of shares among third parties. Shareholders may use their shares as collateral. These participation bonds shall be tax exempt.
(11) Acquire personal property outside of the District’s delimitation, provided that such acquisition benefits the communities of the District or contributes to the implementation of the District’s Plan.
(c) The Land Trust shall be exempt from the payment of any taxes, registration fees, charges, and license fees imposed by the Commonwealth of Puerto Rico and its municipalities, including, but not limited to income and property taxes, municipal license fees, excise taxes, and sales and use tax on goods or services used as part of their undertakings, among others. The Land Trust shall also be exempt from the payment of any charges, internal revenue stamps and vouchers, registration fees, costs or taxes required by law to initiate judicial proceedings, issuance of certifications in any office or agency of the Commonwealth of Puerto Rico, and execution of any public or private document by the Land Trust, as well as any seal, stamp, voucher, or fee required for the issuance of permits, endorsements, consultations, and/or certifications.
(d) The bonds issued by the Land Trust and the return, interest, or income derived therefrom shall be exempt from any tax or levy imposed by the Commonwealth of Puerto Rico, its agencies and municipalities, including, but not limited to the alternative basic tax imposed by § 30062 of Title 13. The principal and interest of the bonds issued by the Trust may be guaranteed by the total or partial encumbrance of any income of the Land Trust, including the use of collateral that is not exempt at source without it affecting the exempt nature of such bonds.
(e) In consideration to the sui generis nature of the Land Trust, whose purpose is not contemplated in the Puerto Rico Trust Act (§§ 3351 et seq. of Title 32), this Land Trust shall be governed by this chapter. In the event that any doubt arises with regard to the interpretation of the powers, authorities, and operation thereof, the historical experience and doctrinal development of Community Land Trusts and similar concepts shall be taken into account, as applicable.
The Corporation shall prepare a public report on the activities of the Land Trust every one hundred eighty (180) days [following] the creation thereof. It shall indicate, among others, the financial situation of the Trust, as well as any other matter that should be made public as determined by regulation.
History —Sept. 24, 2004, No. 489, § 19; renumbered as § 22 and amended on Aug. 14, 2013, No. 104, §§ 14, 15.