Background and Context
Infonavit, Mexico’s national housing fund, has announced a plan to regularize homes that have been illegally occupied and those owned by delinquent borrowers. As of now, there are approximately 843,000 “troubled” homes, with 168,000 already censused. Among these, 145,000 are occupied by individuals other than the accredited owners or by borrowers who have stopped paying their credits. Additionally, there are 23,000 vacant or vandalized homes.
Infonavit’s Policy and Approach
Infonavit will maintain the policy from the López Obrador administration of avoiding forced evictions. Instead, they will offer a rental scheme with affordable payments and the option to purchase at economical prices, including non-Infonavit beneficiaries. There will be no coercion; each occupant will be negotiated with to regularize their situation. If they refuse, they can continue occupying the home but won’t be legal owners.
For delinquent borrowers, the plan includes restructuring their debts, considering the debtor’s economic capacity; freezing balances, automatic reductions in interest rates, and discounts on the balance; and converting credits from minimum wage times to fixed monthly payments and interest rates.
Infonavit intends to conduct pilot phases in states with high abandoned housing rates, such as the State of Mexico, Chihuahua, or Baja California.
Government Response and Criticism
The day after the announcement, Secretary of the Interior, Rosa Isela Rodríguez, clarified that property rights of those who can prove they filed a complaint for theft against occupiers will be respected.
Key Questions and Answers
- Is it correct to legalize the illegal? No, it is not. Legalizing the illegal provides an perverse incentive for those needing a home, encouraging them to illegally occupy someone else’s property instead of working and paying for it.
- How does this plan affect property rights and the rule of law? This plan demotes law compliance, violates private property rights, and weakens the rule of law. It sets a negative precedent and implies governmental leniency towards crime.
- What are the potential consequences for Infonavit’s resources? The impact on Infonavit’s resources, ultimately funded by workers and employers, remains to be seen.
Broader Context: Mexico’s Housing Crisis
Mexico is in a critical phase of investment, marked by an increase in international arbitration cases and legal transformations in fiscal, energy, and judicial sectors, according to the Mexican Chamber of International Commerce.
There are multiple active cases related to investments, including six in the mining sector, two in finance, two in energy, one in fiscal matters, and one in telecommunications.
