Background on Infonavit and the Issue
As the Mexican federal government aims to diagnose and address abandoned homes across the country, the Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit) finds itself at the heart of a controversy following director Octavio Romero’s statements about providing options for illegally occupied abandoned properties.
Diverse Opinions on the Matter
Romero’s statements have sparked differing opinions, with many criticizing the proposed regularization of illegal home occupations, arguing that it undermines private property rights.
Abandoned Housing
- Left abandoned.
- Vandalized.
According to Romero Oropeza, there are approximately 168,000 abandoned or vandalized homes. Of these, 145,000 are occupied and 23,000 are either abandoned or vandalized.
“Out of these 168,000 homes, 145,000 are occupied, not abandoned. They’re being occupied by individuals who originally took out a mortgage but no longer make payments, or by people without housing who see these properties as abandoned and occupy them illegally,” Romero Oropeza explained during a June 16 morning press conference.
Proposed Solutions and Controversy
Based on the census conducted by the Secretariat of Well-being covering 843,000 households, Infonavit aims to propose three types of solutions:
- When occupied by a credit holder: Restructure the loan through freezing, reducing interest rates, monthly payments, and deducting from the principal balance.
- When occupied by a third party: Regularize through social rental schemes with the option to purchase.
- When the property is abandoned or vandalized: Rehabilitate and offer through social rental schemes with the option to purchase.
Regarding the second point, which sparked controversy, Romero Oropeza clarified that the intention is to propose solutions to those occupying identified properties without causing any evictions.
“We propose that they can acquire it at a very affordable price, book value, if not rightful beneficiaries, through a rent-to-own scheme. As they pay the rent, they also build ownership of their home over four to five years,” he added.
Conflicting Opinions
Romero Oropeza’s statements provoked opposition, primarily from the business sector, which argued that Infonavit was created to safeguard workers’ assets, not endorse illegal occupations or turn non-beneficiaries into property owners.
“We categorically reject any initiative that rewards illegal housing takeovers and demand that competent authorities—especially the Infonavit Assembly—stop any attempts to legalize occupations outside the law,” stated a joint communique from these associations:
- The Mexican Association of Brokerage Institutions.
- The National Chamber of Commerce, Services, and Tourism of Mexico City.
- The Confederation of Industrial Chambers of the Mexican Republic.
- The Confederation of Employers’ Associations of Mexico.
- The Mexican Business Council for Foreign Trade, Investment, and Technology, A.C.
- The National Council of the Mexican Tourism Industry.
In response, Chief Executive Claudia Sheinbaum asserted that the measure does not infringe on private property rights and emphasized that it’s not about “taking a home from its rightful owner.” She urged against misinterpretations.
“We need to determine if someone owes Infonavit, so they stop paying the debt. Address what was paid and why they didn’t occupy it. Leaving these homes in an irregular state is absurd,” she stated.
Legal Aspects
According to Fernando Soto-Hay Pintado, director of Tu Hipoteca Fácil, for Infonavit to offer schemes for abandoned homes, it must first conduct legal procedures to become the property’s owner. The scenarios include:
- Infonavit receiving the property as payment for overdue credit, resulting in a transfer of ownership and public deed documentation.
- Infonavit receiving the property from developers due to builders’ difficulties in completing projects.
- Legal procedures proving Infonavit’s property acquisition.
“The Constitution clearly defines private and public property limits, owner rights, and there are crimes related to property invasions,” Soto-Hay Pintado declared.
As of now, Infonavit has not disclosed whether it owns the invaded and planned-to-be rented-with-purchase-option properties.
Key Questions and Answers
- What is Infonavit? The Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit) is a Mexican government-run housing finance institution that provides mortgages to workers.
- What is the controversy about? Infonavit’s plan to offer rental-with-purchase-option schemes for abandoned homes has sparked debate, with critics arguing it undermines private property rights.
- What are the proposed solutions? Infonavit suggests three options: restructuring loans for credit holders, social rental schemes with purchase options for third parties, and rehabilitating abandoned properties for similar rental schemes.
- What do critics say? Critics, mainly from the business sector, claim Infonavit should protect workers’ assets rather than endorse illegal occupations.
- What does Infonavit say about property rights? Infonavit asserts that their plan doesn’t infringe on private property rights, emphasizing they aim to resolve debt issues and prevent further abandonment.
(With information from Samanta Escobar)
