House Bill Seeks to Spell Out Who Skips CRIM Property Tax on Federally Backed Affordable Rentals

A bill filed in the Puerto Rico House of Representatives aims to settle who gets out of paying CRIM property tax when they offer federally backed affordable rentals. House Bill 1533 was filed at CRIM's own request and referred to the House Municipal Affairs Committee, as reported on October 30 ¹. The odd part is the timing: the law that already granted this relief, Act 37-2024, remains frozen by the Financial Oversight and Management Board ².

Background: an approved exemption that never took off

Act 37-2024 amended Article 7.092 of the Municipal Code to restore the property tax exemption for subsidized housing projects, including those operating under Section 8 ³. In practice, the law covers programs such as USDA Rural Development, Section 8 and some projects run by the Housing Department ².

The problem is fiscal. On May 12, 2025, the Board notified the government that Act 37 violates PROMESA and the certified fiscal plans ². By September 2025, Board executive director Robert Mujica reiterated that the law "cannot take effect" until the Board determines it complies with PROMESA ². The Federation of Mayors warned that municipalities would lose $35.7 million a year based on the Executive's own estimates, and that the hit would also reach the CAE and the Extraordinary Fund, which are fed by CRIM revenue ².

That is the backdrop for the new bill: the exemption exists on paper, but nobody knows exactly who it would cover or how it would be calculated.

What HB 1533 says

Filed by New Progressive Party Reps. Omayra Martínez-Vázquez and Luis Pérez-Ortiz, the bill amends Article 7.092 of the Municipal Code again ¹. Its main points:

• Relief is limited to qualifying affordable residential units and necessary common areas. Commercial spaces, offices, independently operated parking and market-rate apartments are out ¹.
• It covers project-based Section 8 contracts and newly built or substantially rehabilitated HOME, LIHTC or CDBG developments. Other federal programs could also qualify if the housing secretary certifies them as substantially equivalent ¹.
• It excludes tenant-based Section 8 vouchers when they are the only support. A landlord who merely accepts vouchers would not qualify ¹.
• For mixed-use properties, CRIM would prorate the exemption by square footage, number of qualifying units or another objective method set by regulation ¹.
• It recognizes eligibility for projects operating or under way as of August 13, 2020, but does not authorize refunds, credits or forgiveness of taxes, interest, surcharges or penalties already due, assessed or paid ¹.
• It directs the Housing Department and CRIM to implement it, including regulations on renewing and revoking exemptions. It would take effect immediately ¹.

The bill's statement of motives concedes the measure "could have a considerable fiscal impact," but argues it provides "legal certainty to preserve investments" and that the availability of safe, affordable rentals is a public policy priority ¹. As an example of a project financed with federal recovery funds and low-income housing tax credits, the report cites the 292-unit Valley Village in Santa Isabel ¹.

Numbers that matter

• $35.7 million: estimated annual loss for municipalities, per Executive estimates cited by mayors ².
• $33.5 to $35.7 million: annual revenue-loss range for fiscal years 2025 through 2028, cited by the Board when it objected to Act 37 in May 2025 ¹.
• 292 units: size of Valley Village in Santa Isabel ¹.
• August 13, 2020: cutoff for recognizing projects operating or under way ¹.

What it means for you

If you rent in a subsidized complex, the tax exemption does not change your rent today. But owners of these projects run on thin margins, and property tax is a fixed cost that can weigh on maintenance or on the decision to stay in the program. The bill's stated goal is to preserve those investments ¹.

If you own or develop affordable rentals, the fine print is the key: the bill distinguishes between contracts tied to the building and vouchers tied to the tenant, and only the former would qualify ¹. If you are a mayor or work in municipal finance, the debate is different: every exemption is revenue CRIM does not collect ².

How to / Checklist

1. Identify what federal support your property has: project-based Section 8 contract, HOME, LIHTC, CDBG or other. Check your financing documents ¹.
2. If you only house tenants with Section 8 vouchers, note that under the filed text that alone would not earn the exemption ¹.
3. Map out the affordable units and necessary common areas. Commercial space, offices and independent parking would be excluded ¹.
4. Check with CRIM (crimpr.net) on how your property is classified today and whether you have an exemption in force, revoked or pending ¹³.
5. Track HB 1533 on the legislature's SUTRA system (sutra.oslpr.org) and submit written comments to the House Municipal Affairs Committee if hearings are announced ¹.
6. Ask the Housing Department (vivienda.pr.gov) whether your federal program could be certified as "substantially equivalent" ¹.
7. Do not stop paying taxes already assessed while waiting for the law: the bill grants no forgiveness or refunds ¹.

What's next

The bill sits in the Municipal Affairs Committee, with no hearings or dates announced ¹. Even if it passes and the governor signs it, the Board remains an obstacle. The Board has made clear its review is limited to fiscal compatibility and that substantial changes to Act 37 would need to be reassessed ². The bill itself admits a potentially considerable fiscal impact ¹. The underlying question is whether the government can prove to the Board that the exemption fits within the certified fiscal plans.

Sources

1. News is my Business, "Puerto Rico bill would widen rental housing tax exemptions," October 30, 2026.
2. Metro Puerto Rico, "JSF reitera que ley sobre exenciones del CRIM no puede entrar en vigor," September 10, 2025.
3. Act 37-2024, Office of Management and Budget, Virtual Library (bvirtualogp.pr.gov).