Bill would amend the General Eminent Domain Act and Municipal Code
A bill filed Tuesday in the Senate would allow municipalities to obtain title to properties declared public nuisances and register ownership in the Property Registry without first depositing or paying just compensation to owners, a proposal supporters say would speed efforts to address abandoned and deteriorated structures across Puerto Rico.
The legislation, introduced by Senate President Thomas Rivera Schatz at the request of the Federation of Mayors and the Federation of Municipal Legislators, would amend Puerto Rico’s Municipal Code and the General Eminent Domain Act to clarify that municipalities are not required to deposit compensation as a condition for acquiring title, taking possession of, or registering public nuisance properties acquired through expropriation.
Senate Bill 1594 states that once a court issues an order vesting title in a municipality, that order alone would constitute sufficient legal title for registration in the Property Registry. Property registrars would be prohibited from requiring additional documentation or proof that compensation has been deposited or paid before recording the property transfer.
According to the bill’s statement of motives, the proposal responds to recent court interpretations that have required municipalities to deposit the full amount of just compensation before an expropriation becomes effective, even in cases where courts have already vested title in a municipality, and no interested party has formally appeared in the proceedings. Lawmakers argue that those interpretations conflict with the existing Municipal Code and have slowed efforts to address abandoned properties considered threats to public health, safety and community welfare.
The legislation would establish that, in public nuisance expropriations, municipalities would only become obligated to pay compensation when a property owner or other interested party appears in court and proves entitlement to the funds. Individuals with a right to compensation would have three years after a court judgment to claim the money, with interest accruing until payment is made.
The bill emphasizes that property owners would retain their constitutional right to just compensation. However, it specifies that a court judgment setting compensation could not delay, suspend, or invalidate a municipality’s acquisition of title, possession of the property, or registration of ownership.
Supporters contend the changes are necessary because requiring municipalities to reserve public funds before an eligible claimant appears can unnecessarily delay the rehabilitation of abandoned properties. The measure argues that public nuisance expropriations constitute a special statutory process designed to allow municipalities to act quickly when properties have become vacant, deteriorated or hazardous.
Beyond the expropriation provisions, the bill would make a range of changes to municipal law, including allowing municipalities to publish notices to unknown property owners through high-reach digital platforms or social media rather than relying solely on printed newspapers, exempting purchases of food, drugs and medicines from certain competitive bidding requirements, and permitting municipalities to structure employee work schedules into shifts of up to 10 hours per day as long as the workweek does not exceed 40 hours.
The legislation would also apply the expropriation changes to pending public nuisance cases in which no final and binding determination has yet been issued.
