Framework Law on Housing and Human Settlements

PURPOSE OF THE LAW: The purpose of this Law is to define the regulatory and institutional framework of the housing sector and human settlements in the country, in order to generate mechanisms that promote the implementation of a comprehensive housing policy. Likewise, it seeks to enable access to dignified housing solutions through the implementation of different housing programs, with the aim of improving the quality of life of the population; promoting territorial development, inclusive, safe and sustainable cities and human settlements, and encouraging financial inclusion.

OBJECTIVES OF THE HOUSING POLICY: The objectives of the housing policy designed and implemented by the Government of the Republic, as of the entry into force of this Law, are the following:

• 1)

  To strengthen the regulatory and institutional framework of the Housing Sector and Human Settlements, in order to satisfy the housing needs of the country;

• 2)

  To have a Sectoral Information System that allows for appropriate decision-making, in accordance with the behavior of the housing sector and human settlements;

• 3)

  To establish and define mechanisms that facilitate families' access to dignified and adequate housing;

• 4)

  To define coordination mechanisms in the functions of national, departmental and municipal public sector institutions in sectoral management that facilitate the reduction of the housing deficit;

• 5)

  To establish instruments to encourage private sector participation in the development of housing projects;

• 6)

  To establish mechanisms that facilitate housing financing;

• 7)

  To promote access to housing through financial leasing operations for housing with the option to purchase, in compliance with legal requirements. Similarly, through mortgages and other qualified financial instruments;

• 8)

  To incorporate exemptions to promote the construction, remediation, and regularization of ownership of social interest housing;

• 9)

  To contribute to the fulfillment of the objectives of sustainable development and the provisions contained in the New Urban Agenda, approved at the United Nations Conference on Housing and Sustainable Urban Development (Habitat III), Quito, Ecuador, October 2016; particularly with regard to the need to ensure that human settlements are inclusive, safe and sustainable, ensuring families' access to housing and basic public services; and,

• 10)

  The housing policy must be articulated with the territorial development and human settlements policy formulated by the Government of the Republic.

RESPONSIBILITIES OF NATIONAL, DEPARTMENTAL AND MUNICIPAL ENTITIES: For the fulfillment of the purpose of this Law, public entities of the national, departmental and municipal order, with functions related to the Housing policy, must:

• 1)

  Promote the articulation and consistency of policies and information for the development of programs that promote access to housing;

• 2)

  Establish reliable information systems and conduct studies on the needs, inventories, modalities and characteristics of housing and the population;

• 3)

  Actively participate in the fulfillment of the objectives of the National Housing System referred to in this Law;

• 4)

  Grant incentives and support for the acquisition, construction and improvement of housing;

• 5)

  Ensure that housing projects executed have livability conditions that allow for the safeguarding of fundamental rights of persons; in particular, those of the most vulnerable groups;

• 6)

  Within the scope of their competencies, make decisions that promote the identification, management and enablement of land in their territories for the development of comprehensive housing projects and guarantee access of these developments to public services. The identification of land for the purposes referred to in this paragraph must be incorporated in the Land Use Planning Plans of each Municipality;

• 7)

  Incorporate State resources for the promotion or execution of social interest housing programs;

• 8)

  Prioritize the construction, provision and operation of services complementary to housing, such as facilities intended for education, health, security, social welfare, economic development, information technologies, communications and the provision of domestic public services, among others;

• 9)

  Promote mechanisms for generating family income and social support for the population benefiting from the development of social interest housing projects, especially for lower-income households; and,

• 10)

  Implement registration, permit and licensing systems, based on, but not limited to: electronic government, that facilitate procedures for processing, granting and corresponding payments. The Government of the Republic must establish incentives in terms of resource allocation for housing, equipment and road and services infrastructure to municipalities that have adapted their land use planning plans to the provisions of this Law.

CREATION OF THE STATE SECRETARIAT OF HOUSING AND HUMAN SETTLEMENTS (SEVIAH): There is hereby created the State Secretariat of Housing and Human Settlements (SEVIAH), whose purpose is the formulation, coordination, execution and evaluation of the public policy on housing and human settlements in the country. The State Secretariat of Housing and Human Settlements (SEVIAH) forms part of the General Administration of the State referred to in Article 29 of Decree No. 266-2013 dated December 16, 2013 and published in the Official Gazette "La Gaceta" on January 23, 2014, Edition No. 33,336, containing the Law to Optimize Public Administration, Improve Services to Citizens and Strengthen Transparency in Government. All functions regarding the policy of housing and human settlements that are under the responsibility of other State Secretariats or other public entities are assumed by the State Secretariat of Housing and Human Settlements (SEVIAH). The President of the Republic, in Council of Ministers, must define the structure and internal organization of the State Secretariat of Housing and Human Settlements.

PRINCIPAL FUNCTIONS OF THE STATE SECRETARIAT OF HOUSING AND HUMAN SETTLEMENTS (SEVIAH): Without prejudice to those that may be subsequently assigned by the President of the Republic, the State Secretariat of Housing and Human Settlements (SEVIAH) must fulfill the following functions:

• 1)

  To design, propose and direct the public policy of the Housing Sector;

• 2)

  To coordinate the National Housing System and define its public policies;

• 3)

  To define the sector's goals for each Government period and design plans aimed at the continuous improvement of the system for the short, medium and long term and monitoring systems for verification of their compliance;

• 4)

  To periodically evaluate the institutions, results and impacts of the execution of Housing policy;

• 5)

  To define and implement instruments that allow economically disadvantaged families to have access to dignified housing;

• 6)

  To design and implement the Information System of the Housing Sector and Human Settlements referred to in this Law;

• 7)

  To monitor compliance with the objectives of Housing policy and the development of programs related to the sector, executed by other entities that make up the National Housing System;

• 8)

  To promote the financing and construction of dignified, inclusive, safe and sustainable housing;

• 9)

  To define conditions for the execution and technical, legal, financial and economic structuring of housing projects in any part of the national territory;

• 10)

  To define the minimum standards that housing must meet in terms of quality, spaces, accessibility, availability of public services and location;

• 11)

  To develop technical assistance processes in the Republic of Honduras on the pertinent matters of this Law;

• 12)

  To design and execute programs and projects aimed at the remediation of property, its regularization, titling and registration, prioritizing social interest housing;

• 13)

  To design and implement schemes and programs for the provision of domestic public services, construction, provision of social equipment and economic development for housing projects, prioritizing social interest housing;

• 14)

  To coordinate an Inter-institutional Committee for Facilitation of Administrative Procedures, as a coordinating body of all national and municipal organizations and offices and concessioned operators of municipal and/or regional public services; to facilitate the obtaining of permits for construction and operation of housing projects; furthermore, with other entities of the Government of the Republic that manage comprehensive administrative facilitation processes;

• 15)

  From the corresponding budgetary item, the State Secretariat of Housing and Human Settlements (SEVIAH) may allocate resources for the payment of guarantees issued by Reciprocal Guarantee Funds, intended for mortgage credits or financial leasing operations with the option to purchase the housing covered by the bonds; and,

• 16)

  Others related to the objectives of this Law. The Executive Branch, through the State Secretariat of Housing and Human Settlements (SEVIAH), must create municipal, departmental and regional coordinations in matters of Housing and Human Settlements. The State of Honduras must allocate budgetary resources for the proper fulfillment of the functions delegated to the State Secretariat of Housing and Human Settlements, in accordance with what is stated in this Article.

ORIGIN OF THE HONDURAN HOUSING FUND (FONHVIVIENDA): The Social Housing Fund created through Article 181 of the Constitution of the Republic of Honduras, as an institution whose purpose is housing development in urban and rural areas of the country, for the purposes of this Law, the Honduran Housing Fund (FONHVIVIENDA), as a deconcentrated entity of the State Secretariat of Housing and Human Settlements (SEVIAH), with a priority focus on social interest housing, with its own assets and administrative and financial independence, named Honduran Housing Fund (FONHVIVIENDA). The Honduran Housing Fund (FONHVIVIENDA) has the following principal functions:

• 1)

  To apply the regulations issued by the State Secretariat of Housing and Human Settlements (SEVIAH), in relation to the assignment of housing bonds;

• 2)

  To administer the resources of the national budget and others intended for the assignment of housing bonds;

• 3)

  To regulate the granting of housing bonds prioritizing their assignment for the benefit of the development of Social Interest Housing;

• 4)

  To establish Trusts for the administration of the resources in its charge, which must comply with the obligations referred to in Article 22 of this Law;

• 5)

  To allocate housing bond resources to the granting of interest rate coverage, in accordance with what is established in this Law;

• 6)

  To report to the Sectoral Information System the information relative to the assignment of housing bond resources and the execution of housing projects in which the Fund's resources are executed;

• 7)

  To execute housing bond reimbursement processes when the conditions for such are met;

• 8)

  To allocate other resources from its budget for the granting of interest rate coverage for the acquisition of housing, in accordance with the regulations issued by the State Secretariat of Housing and Human Settlements; and,

• 9)

  Others for the fulfillment of the objectives of this Law that are assigned to it through its Board of Directors.

DIRECTION OF THE HONDURAN HOUSING FUND (FONHVIVIENDA): The Direction and Administration of the Honduran Housing Fund (FONHVIVIENDA) must be under the responsibility of a Board of Directors and an Executive Director.

BOARD OF DIRECTORS AND EXECUTIVE DIRECTION OF THE HONDURAN HOUSING FUND (FONHVIVIENDA): The Board of Directors and Executive Direction of the Honduran Housing Fund (FONHVIVIENDA) must be comprised of:

• 1)

  The Secretary of Housing and Human Settlements, or their legal substitute, who shall preside;

• 2)

  The State Secretary in the Office of Finance, or their legal substitute;

• 3)

  The State Secretary in the Office of Economic Development or their legal substitute;

• 4)

  The Executive President of the Bank for Production and Housing (BANHPROVI), or their legal substitute;

• 5)

  A delegate proposed by the Honduran Chamber of Construction (CHICO), or their alternate;

• 6)

  A delegate proposed by the Honduran Association of Banking Institutions (AHIBA), or their alternate;

• 7)

  A delegate proposed by the Honduran Council of Private Enterprise (COHEP), or their alternate; and, 8) A delegate proposed by the Network of Social Housing Development Organizations (REDVISOL), or their alternate. The Board of Directors of the Honduran Housing Fund (FONHVIVIENDA) must issue its Regulations, which must indicate at minimum the frequency of its meetings, the conditions for its convocation, its deliberative quorum and the conditions for the preparation of minutes recording its decisions. For decision-making, consensus among all Members of the Board of Directors must be sought, who are obligated to cast their votes in favor or against. Otherwise, decisions must be made by simple majority. They shall receive no dietary allowance or compensation for their functions. The members of the Board of Directors must act consulting the public policy of the Sector and have, at minimum, the following functions:

  • 1)

    To approve the planning instruments of the Honduran Housing Fund (FONHVIVIENDA), in accordance with sectoral goals and public policy instructions from the State Secretariat of Housing and Human Settlements;

  • 2)

    To monitor the execution of programs and budget under the responsibility of the Honduran Housing Fund (FONHVIVIENDA);

  • 3)

    To define the general policies and strategies under which the Honduran Housing Fund (FONHVIVIENDA) operates; and,

  • 4)

    To study and approve the annual budgetary requirements of the Honduran Housing Fund (FONHVIVIENDA). The Executive Director must be appointed by the Board of Directors, with the function of directing, coordinating and controlling the execution of the functions and powers under the responsibility of the Honduran Housing Fund (FONHVIVIENDA), in accordance with the provisions of this Law and its regulations and in accordance with the decisions of the Board of Directors of the entity. The Director of the Honduran Housing Fund (FONHVIVIENDA) acts as its Legal Representative by delegation of the Board of Directors and must attend its sessions with voice but without vote.

PARTICIPATION OF THE STATE SECRETARIAT OF HOUSING AND HUMAN SETTLEMENTS IN THE NATIONAL HOUSING SYSTEM: Within the scope of its functions as rector of the Housing policy of the country, the State Secretariat of Housing and Human Settlements (SEVIAH) must participate in the following bodies:

• 1)

  To be an integral member of the Assembly of Governors of the Honduran Bank for Production and Housing (BANHPROVI), in accordance with what is established in Article 12 of the Law of the Honduran Bank for Production and Housing (BANHPROVI);

• 2)

  To attend any body related to its functions, especially those referring to housing policy, to which it would have been designated as participant before the entry into force of this Law, the State Secretariat of Infrastructure and Public Services (INSEP) or the National Commission on Housing and Human Settlements (CONVIVIENDA);

• 3)

  To be an integral member of the Board of Directors of the Institute of Property (IP) in application of what is provided as a prerogative of the President of the Republic in Article 8 of the Property Law, of Decree No. 82-2004 dated May 28, 2004 and published in the Official Gazette "La Gaceta" on June 29, 2004, Edition No. 30,428;

• 4)

  To be an integral member of the National Commission on Property Policy and Standards (CONAPON), referred to in Article 18 of the Property Law, of Decree No. 82-2004 dated May 28, 2004 and published in the Official Gazette "La Gaceta" on June 29, 2004, Edition No. 30,428; and,

• 5)

  Such others as determined by the President of the Republic and related to the functions under its responsibility.

OF THE NATIONAL HOUSING SYSTEM: The National Housing System is the ensemble of actors that develop activities conducive to promoting the population's access to housing solutions. The actors involved must act in accordance with this Law and in pursuit of transparency, rationality, efficiency and effectiveness in the use of resources intended for the generation of housing solutions; based on the policies, programs, plans and projects established by the State. For this purpose, the State Secretariat of Housing and Human Settlements (SEVIAH) must exercise coordination of the National Housing System. The State Secretary of Housing must promote the articulation of the National Housing System. Likewise, the State Secretary of Housing and Human Settlements (SEVIAH) has the power to invite other public or private actors and organizations of the National Housing System, and must therefore integrate existing information systems such as the National System of Territorial Information (SINIT), the Single Collection System (SUR) and the Territorial Standards Registry (RENOT). The act of creation of these advisory or consultative bodies by the State Secretariat of Housing and Human Settlements (SEVIAH) must clearly indicate its composition, operating conditions, the functions it must exercise, its permanent or temporary character and the conditions for decision-making, through specific regulations. The execution of housing policy, through plans, programs and projects defined by the Government of the Republic must take into account the integrality of the National Social Housing System and the coordination of its various actors, as well as the budgetary availability and the conditions of the target households.

ENTITIES THAT COMPRISE THE NATIONAL HOUSING SYSTEM: The following public and private entities that carry out activities related to the following matters are part of the National Housing System:

• 1)

  PROMOTION AND EXECUTION: National, departmental or municipal organisms and entities, non-governmental organizations, organizations of citizen origin and private companies that promote, execute or carry out housing solution programs or projects. Such is the case of the Honduran Housing Fund (FONHVIVIENDA), the National Electric Energy Company (ENEE), the National Autonomous Service of Aqueducts and Sewerage (SANAA), the Municipal Water and Sanitation Units (UMAPS) and/or different concessionaires and others of similar nature;

• 2)

  TECHNICAL ASSISTANCE AND PROMOTION: National, departmental or municipal organisms and entities, non-governmental organizations, organizations of citizen origin and private companies that provide technical assistance and promote social organization. Such is the case of the Honduran Chamber of the Construction Industry (CHICO), the Association of Housing Urbanizers and Promoters of Honduras (ASUPROVIH), the Association of Municipalities of Honduras (AMHON), the National Institute of Statistics of Honduras (INE), the Permanent Commission for Contingencies (COPECO), the Institute of Property (IP), the College of Architects of Honduras (CAH), the College of Civil Engineers (CICIH) and others of similar nature; and,

• 3)

  FINANCING AND REGULATION: Organisms and entities authorized to carry out financial operations intended to fulfill the objectives of the system, as well as activities related to housing financing. Such is the case of the Central Bank of Honduras (BCH), the Honduran Bank for Production and Housing (BANHPROVI), the Private Contributions Regime (RAP), Public Pension Systems, the National Commission of Banks and Insurance (CNBS), private organizations of financial development, the Honduran Association of Banking Institutions (AHIBA), societies administering Reciprocal Guarantee Funds; Credit Unions and Savings Cooperatives, the Foundation for the Development of Urban and Rural Social Housing (FUNDEVI) and others of similar nature.

CREATION OF THE SECTORAL INFORMATION SYSTEM: The State Secretariat of Housing and Human Settlements (SEVIAH) is responsible for the design, implementation and operationalization of the Sectoral Information System, to which the entities of the National Housing System must report. The Sectoral Information System must contain:

• 1)

  Information on the behavior of the housing sector in terms of supply: permits or licenses, start of works, sales, disbursements of housing credit loans or financial leasing operations for housing, among others;

• 2)

  Information on the quantitative and qualitative housing deficit of the country, by departments and municipalities. To advance this activity, the State Secretariat of Housing and Human Settlements (SEVIAH) must define, jointly with the National Institute of Statistics (INE), the methodology by which it must verify whether the country's households find themselves in any of the two (2) modalities of housing deficit;

• 3)

  Information on the number and conditions of housing bonds granted within the framework of housing policy, as well as monitoring of the execution of bonds and physical execution of housing projects in which public resources are invested;

• 4)

  Historical information on the beneficiaries of Bonds or any other mechanism to promote access to housing, financed with State resources;

• 5)

  Information on the progress of property regularization processes, especially those that allow access to social interest housing, for monitoring the process from its beginning to registration of the beneficiary's property title;

• 6)

  Information on housing tenure and spending conditions of the country's households;

• 7)

  Information on the Rental market in the country, including data on the number of households accessing housing through traditional rental, without transfer of property and the number of contracts registered in the Administrative Department of Tenancies (DAI);

• 8)

  Information on the Financial Leasing of Housing market in the country, including data on the number of households accessing financial leasing with the option to transfer property; and,

• 9)

  Territorial information of public order, such as statistical, census, registry and any other type of databases, which have an impact on territorial development, in accordance with what is established in Article 52 of the Land Use Planning Law. The State Secretariat of Housing and Human Settlements (SEVIAH) must provide for the inclusion of additional information in the Sectoral Information System and shall indicate the terms and conditions in which other public entities of the National Housing System must report the information under their responsibility. Likewise, information that may be obtained from private entities of the National Housing System must be incorporated in the Sectoral Information System. All public entities of the National Housing System are obligated to provide the information referred to in this Article, for delivery to the Sectoral Information System, under the terms and conditions defined by the State Secretariat of Housing and Human Settlements (SEVIAH).

OBLIGATION TO GENERATE STUDIES AND REPORTS, BASED ON THE SECTORAL INFORMATION SYSTEM: The State Secretariat of Housing and Human Settlements (SEVIAH) must publish periodic reports prepared based on information from the Sectoral Information System, which must contain annual information on the supply and demand conditions of the country's housing market and the social impact generated. The reports published by the State Secretariat of Housing and Human Settlements (SEVIAH), in accordance with what is established in this Article, must have a minimum frequency of one year. The first must be published within the year following the entry into force of this Law and in it the housing deficit of the country must be estimated, based on the latest census.

DEFINITION OF SOCIAL INTEREST HOUSING: For all purposes, Social Interest Housing is understood to be that whose value does not exceed eighty (80) times the legal monthly minimum wage, on its highest current scale. The State Secretariat of Housing and Human Settlements (SEVIAH) must define, through regulation, special typologies of social interest housing that allow the lowest income households to have a dignified housing solution. Social interest housing must comply with all elements that ensure its livability in dignified, inclusive, safe, sustainable and adequate conditions, as well as the minimum quality standards of design, architecture, construction, urbanization and equipment defined by the legal order. For the purposes of this Law, the value of the legal monthly minimum wage in force must be calculated by taking the highest monthly value of the minimum wage in the different production and services categories, defined in the current table issued by the State Secretariat of Work and Social Security (STSS).

DEFINITION OF SOCIAL INTEREST HOUSING BOND: The Social Interest Housing Bond is a State contribution, in money or in kind, to facilitate access to social interest housing, or the improvement of its livability conditions, in any of the modalities referred to in Article 16 of this Law. The social interest housing bond that the Honduran Housing Fund (FONHVIVIENDA) assigns may be granted: 1) To the beneficiary household, as a non-reimbursable contribution, to be applied in any of the modalities referred to in Article 16 of this Law, provided that the household and the beneficiary comply with the conditions defined by the State Secretariat of Housing and Human Settlements (SEVIAH) for access to programs that promote access to housing or the improvement of its livability conditions; and, 2) For the execution of social interest housing projects, provided that with the resources of the Bond the access to social interest housing is facilitated or promoted by households that comply with the targeting conditions defined for the programs that are part of public policy. The system of bond assignment, as well as the application, monitoring and management indicators thereof, must be open and public information, therefore, be an integral part of the online network of the National Housing System.

MODALITIES OF APPLICATION OF THE SOCIAL INTEREST HOUSING BONUS: The Social Interest Housing Bonus has the objective of allowing a household to have a housing solution under satisfactory conditions of space, public services, quality and location or to initiate the process to obtain them in the future. Consequently, the Social Interest Housing Bonus can be applied in any of the following modalities:

• 1)

  Construction, financing or acquisition of social interest housing;

• 2)

  Acquisition of lots intended for self-construction programs or construction of social interest housing;

• 3)

  Celebration of rental contracts with option to purchase social interest housing, in which the Bonus can be allocated in whole or in part for:

  • a)

    Initial and anticipated payment of installments or monthly payments of the contract;

  • b)

    Administrative expenses associated with the contract;

  • c)

    For the exercise of the purchase option; and, d) Total or Partial Payment of Principal or Interest of a defined number of installments.

• 4)

  Acquisition of construction materials for social interest housing;

• 5)

  Improvement, repair or adequacy of social interest housing; and,

• 6)

  Green Housing Resilient to Climate Change. Authorization is granted for the installation of bidirectional systems for measuring the generation of renewable energy in new social interest housing, which facilitate the sale and dispatch of energy through the national transmission and distribution network, tending to capture savings and/or new income that improve the patrimony of families living in the housing. The limits and other provisions related to the incorporation and commercialization of said energy in the national electrical system must be regulated through Executive Decree approved by the President of the Republic in Cabinet Council, prior consultation with the Electrical Energy Regulatory Commission (CREE).

BENEFICIARIES OF THE SOCIAL INTEREST HOUSING BONUS: The Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) must design a comprehensive housing policy that allows the creation of social interest housing programs that adapt to the socioeconomic conditions of different population segments in the country. The Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) must define the conditions that households must meet to access the Social Interest Housing Bonuses granted by the Honduran Housing Fund (FONHVIVIENDA), as well as the conditions that projects must meet to be co-financed or financed with Social Interest Housing Bonus resources. Without prejudice to what is established in this Article, the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) must prioritize housing attention for households with income less than or equal to four (4) Current Legal Minimum Monthly Salaries in its highest scale, through any of the modalities referred to in Article 16 of this Law. Beneficiaries of the Social Interest Housing Bonus whose housing solutions have been affected by natural disasters, uninsured, duly qualified and processed before the competent authorities, have the right to access a Social Interest Housing Bonus again, according to the conditions established for this purpose by the Government of the Republic. Those who have accessed a Social Interest Housing Bonus granted by the State through its institutions or housing programs, for a value less than that of the social interest housing specified in Article 14 of this Law, which have been granted but have not been effectively applied to a housing solution, must receive an increase in the value of the assigned Bonus, without the resources granted exceeding the value of social interest housing, provided that the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) so defines and in accordance with the terms and conditions established by said entity. In any case, the sum of benefits received by the same family, as a Bonus, must not exceed the value of social interest housing.

RETURN OR TRANSFER OF THE SOCIAL INTEREST HOUSING BONUS: The Housing Bonus must be returned to the Honduran Housing Fund (FONHVIVIENDA) when the beneficiary transfers ownership of the housing solution in which it has been applied or ceases to reside in it before the period defined by the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) has elapsed, without specific permission based on reasons of force majeure defined by said entity. The beneficiary must return the Housing Bonus to the Honduran Housing Fund (FONHVIVIENDA) if it is proven that there was falsity in the documents presented to accredit the requirements established for its granting. The obligation to return the social interest housing bonus does not apply when there is a transfer of the housing subject to the bonus to a new occupant, if the occupant is eligible and qualifies for the benefit in accordance with the provisions and regulations established by the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH). The restitution of the social interest housing bonus through its return to the Honduran Social Housing Fund (FONHVIVIENDA) or transfer to a new eligible occupant as a beneficiary must be made as defined by the Regulation of this Law. In housing projects where the State participates as a donor of land, services, recreational parks, urbanization and other assets or services financed by the State that result in benefits at no cost per housing unit, the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) must account for the contribution of these donations in a way that avoids duplication of benefits and destabilization in the real estate market. The foregoing does not apply in cases of housing delivered within the framework of social programs in which the State makes a total donation of the housing. CHAPTER II VALUE OF THE SOCIAL INTEREST HOUSING BONUS

VALUE OF THE SOCIAL INTEREST HOUSING BONUS: The value of the Social Interest Housing Bonus must be differentiated for each housing program defined by the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH), in accordance with the socioeconomic characteristics of the beneficiary population and formalized through the Regulation mandated by Article 42 of this Law. The value of the Social Interest Housing Bonus must not be less than eleven percent (11%) of the value of the social interest housing to be acquired by lease or purchase.

DISTRIBUTION OF RESOURCES FOR THE SOCIAL INTEREST HOUSING BONUS: The Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH) must establish procedures for equitable distribution of resources based on the concentration of the housing deficit (quantitative and qualitative) of households in situations of poverty and extreme poverty. In development of this function, it must define differentiated values of the social interest housing bonus value by regions, departments or municipalities, in accordance with their particularities. CHAPTER III ALLOCATION AND ADMINISTRATION OF RESOURCES FOR THE GRANTING OF SOCIAL INTEREST HOUSING BONUSES

ALLOCATION OF RESOURCES FOR SOCIAL INTEREST HOUSING BONUSES: From National Budget resources, an annual sum equivalent to and not less than one hundred fifty thousand (150,000) current monthly minimum salaries must be allocated, taking as a basis the minimum wage of the highest amount in its different production and service categories, provided by the Secretariat of State in the Ministry of Labor and Social Security (STSS), for the granting of bonuses for social interest housing, through the Honduran Social Housing Fund (FONHVIVIENDA). The resources referred to in this Article must come from three percent (3%) of the increase in the Sales Tax (ISV), incorporated into the Solidarity and Social Protection Fund for the reduction of extreme poverty referred to in Decree No. 290-2013 dated January 8, 2014 and published in the Official Journal "La Gaceta" on April 5, 2014, Edition No. 33,398 or the norms that modify, constitute or substitute it or from any other source of financing of the General Budget of the Republic.

MECHANISMS OF ADMINISTRATION OF RESOURCES: The resources allocated to the Honduran Housing Fund (FONHVIVIENDA) for the granting of Social Interest Housing Bonuses must be administered, in whole or in part, through Trusts, through the celebration of contracts in which the Honduran Housing Fund (FONHVIVIENDA) must act as Trustor. The resources transferred to said Trusts are understood to be budgetarily executed. The Trusts that are established must also be empowered to:

• 1)

  Structure, promote and encourage housing projects;

• 2)

  Initiate contracting, execution and administration processes of the different stages of works and housing projects to be financed with the administered resources. These contracting processes are subject to the principles of efficiency, transparency, publicity, equality and free competition;

• 3)

  Issue certifications of availability of resources destined for social interest housing projects to be financed;

• 4)

  Administer the resources contributed by any public or private entity to the Trust, subject to prior authorization of the Trustor and under the conditions defined by the latter; and,

• 5)

  Perform the Compensation of the Housing Bonus granted on the interest rate. TITLE IV HOUSING FINANCING CHAPTER I CONDITIONS OF FINANCING OPERATIONS FOR ACCESS TO HOUSING

OBJECTIVES OF THE FINANCIAL SYSTEM IN MATTERS OF HOUSING FINANCING: It is the responsibility of the Government of the Republic of Honduras to collaborate with the Long-term Housing Financing System in accordance with the following objectives and criteria:

• 1)

  Protect the patrimony of families represented in housing;

• 2)

  Implement and strengthen financial mechanisms or instruments that allow facilitating access to financing of social interest housing for Honduran families;

• 3)

  Define jointly with the different actors of the system, the criteria to qualify beneficiaries for the granting of credits and financial lease operations of housing with option to purchase.

• 4)

  Promote the development of efficient mechanisms for long-term housing financing, with emphasis on those that facilitate access to social interest housing financing; and,

• 5)

  Promote the construction of housing, particularly social interest housing.

CONDITIONS OF HOUSING CREDITS WITH PUBLIC FUNDS: The Government of the Republic of Honduras, at the proposal of the Honduran Housing Fund (FONHVIVIENDA), must establish the conditions of long-term housing credits that apply to the social interest housing bonus or that are financed directly or indirectly through public funds or institutions; and must comply at a minimum with the following requirements:

• 1)

  Be intended for the purchase of the first or second housing, new or used, purchase of land and construction or improvement of comprehensive housing.

• 2)

  Have a repayment period of thirty (30) years maximum; and be guaranteed with mortgages constituted on the financed housing of first and second mortgage.

• 3)

  When using resources from the Honduran Social Housing Fund (FONHVIVIENDA), it must have a maximum loan amount that does not exceed the ceilings established by the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH);

• 4)

  Allow total or partial prepayment of the debt balance at any time without any penalty and without contemplating the capitalization of default interest;

• 5)

  For its granting, the entity granting the credit must obtain and analyze information regarding the respective debtor and the guarantee, based on best practices and taking into consideration the policies issued for such purposes by the governing body and supervising entities. State second-floor banks must rediscount credits and define their policies in the context of what is defined by the Secretariat of State in the Ministry of Housing and Human Settlements (SEVIAH); and risks must be managed adequately in accordance with best practices and current regulations; and,

• 6)

  The loan installments cannot represent a percentage of personal or family income exceeding that established by Supervised Financial Institutions (IFIS) in the case of own resources and/or the percentage established by the public institution that grants financing directly or indirectly.

FINANCIAL LEASE OF HOUSING: For the purposes of this Law, Financial Lease operations of Housing are understood to be those in which the contract relates to real estate intended for family residential use, with option of acquisition thereof, once the requirements established in the current legal system are met. Said contract must represent a Promissory Title of Property and also a Title of Credit and for its validity must be registered in the Immovable Guarantees Registry administered by the Property Institute (IP), for which the Property Institute (IP) must implement a special registry for this purpose. The provisions defined in the Tenancy Law are not applicable to Financial Leases of Housing, whose objective is to regulate common rental or operative lease and where the beneficiary is not subject to the transfer of the property. The purchase and sale of real estate and financial lease with option to purchase for the housing purposes established are exempt from the payment of Sales Tax (ISV), in accordance with what is provided in Article 15 of the Sales Tax Law (ISV). For tax purposes, the depreciation of real estate: land and housing, subject of financial lease operations, must be carried out in full over the term of the contract.

FINANCIAL LEASE OF HOUSING WITH PUBLIC FUNDS: The Government of the Republic of Honduras, at the proposal of the Honduran Housing Fund (FONHVIVIENDA), must establish the conditions of Financial Leases of Housing that apply to the social interest housing bonus or that are financed directly or indirectly through public funds or institutions; and must comply at a minimum with the following requirements:

• 1)

  Financial Lease of Housing contracts must be explicit regarding the conditions of the interest rate, terms, amount of purchase option, insurance, closing costs and additional charges applicable to the operation and communicated to the National Banking and Insurance Commission (CNBS);

• 2)

  The term for the lease phase of the respective contract must be a maximum of thirty (30) years;

• 3)

  The value of the purchase option initially established for the closing of the contract must not exceed ten percent (10%) of the initial value of the leased property;

• 4)

  The lessee can make extraordinary payments at any time without any penalty and has the right to choose whether the amount paid reduces the monthly installments, the lease term or the value of the purchase option of the property. Similarly, the lessee can exercise the purchase option at any time, provided that the contractual value is paid. The foregoing without prejudice to the payment of current obligations that derive from risk coverage or other contractual commitments;

• 5)

  For its granting, the leasing entity must obtain and analyze information regarding the respective lessor and the guarantee, based on best practices and taking into consideration the policies issued for such purposes by the governing body and supervising entities. Risks must be managed adequately in accordance with best practices and current regulations;

• 6)

  The real estate subject to the contract must be administered by trusts specialized in leasing and administration of real estate, which are directly obligated to the lessor to pay the flows from the leases, in addition to the functions corresponding contractually. In the same manner, the trusts must transfer the housing to their holders when the conditions are met and in case of contract failure, recover the property after liquidation and final settlement with the lessee of the amortized contributions, as applicable, and return the property to the lessor in accordance with the conditions of the contract;

• 7)

  The trusts specialized in leasing and administration of real estate must comply with the norms and provisions defined by the National Banking and Insurance Commission (CNBS); as well as grant the guarantees applicable to lessors and lessees;

• 8)

  Payments by the lessee cannot represent a percentage of personal or family income exceeding that established by Supervised Financial Institutions (IFIS) in the case of own resources or the percentage established by the public institution that grants financing directly or indirectly; and,

• 9)

  The lessee is obligated to maintenance expenses to pay for public services of drinking water, electrical energy, telephone and others, in addition to the maintenance of common areas, municipal taxes, real estate taxes and insurance.

VIABILITY OF PAYMENT OF HOUSING CREDIT OR FINANCIAL LEASE OPERATIONS OF HOUSING: When it is supervised institutions, the National Banking and Insurance Commission (CNBS) must ensure that the parameters for evaluating the payment capacity of the debtor or lessee for the timely payment of a housing credit or a Financial Lease operation of Housing is in accordance with what is established in this Law. When it is social interest housing financing, the defined parameters that must be verified by the National Banking and Insurance Commission (CNBS) must take into account the value of the Social Interest Housing Bonus, susceptible to being assigned to the household, to determine its payment capacity.

RESTRUCTURING OF MORTGAGE CREDITS OR FINANCIAL LEASE OPERATIONS OF HOUSING: At any time of the mortgage credit or Financial Lease operation of Housing, the financial entity can agree with its debtor or lessee a restructuring of the contract, adjusting the amortization system to the true payment capacity of the debtor or lessee, in accordance with the Law and regulations applicable to Intermediate Financial Institutions. Public institutions that grant funds or credits whose objective is housing financing are obligated to incorporate clauses in their agreements or contracts that allow for refinancing or re-indebtedness of the financing, so that they are adjusted to the payment capacity of the debtor or lessee, in accordance with the Law and regulations applicable to Intermediate Financial Institutions.

GUARANTEE OF MORTGAGE CREDITS AND FINANCIAL LEASE OPERATIONS: To guarantee the institutionality and proper functioning of the reciprocal guarantee system, when the mortgage credit and/or financial lease, for housing purposes, is backed by a guarantee issued by the first Reciprocal Guarantee Funds Managing Society, authorized by Article 39 of Decree No. 205-2011 dated November 15, 2011 and published in the Official Journal "La Gaceta" on January 26, 2012, Edition No. 32,731, which contains the Law of the System of Reciprocal Guarantee Funds for the Promotion of Micro and Small Enterprises, Social Housing and Technical-Professional Education or any other society constituted for this purpose, the National Banking and Insurance Commission (CNBS) will define the conditions in which the granting of the guarantee will affect the reduction of the reserve that the financial entity must generate. In any case, the credit reserve required by the National Banking and Insurance Commission (CNBS) for real estate credits with mortgage guarantee cannot exceed the difference resulting between the outstanding balance of the credit and seventy percent (70%) of the appraisal value of the mortgaged property; the previously required value must be reduced in the proportion covered by a Guarantee Fund. In no case can the value to be recorded as an eventual asset be less than seventy percent (70%) of the appraisal of the mortgaged property, unless this value is higher than the debt balance, in which case it must be accounted for at the value of said balance. To the extent compatible, the same considerations must be applied to credits to constitute financial leases of housing and to the leases themselves. CHAPTER II SPECIAL REGIME OF AUTOMATIC DEBIT BY PAYROLL

NATIONAL REGISTRY OF AUTOMATIC DEBIT BY PAYROLL: The National Registry of Automatic Debit by Payroll for Housing is created, in charge of the Honduran Housing Fund (FONHVIVIENDA). Persons interested in obtaining financing under this Law must register in the National Registry of Automatic Debit by Payroll for Housing, in order to authorize, in an irrevocable manner, that Payment Installments for credits or leases granted by regulated financial institutions of the country be automatically debited from payroll, exclusively for the acquisition, construction, repair or improvements of housing.

REGARDING REGISTRATION: The borrower must register in the National Registry of Automatic Payroll Deduction, requesting registration with the Honduran Housing Fund (FONHVIVIENDA), granting irrevocable authorization so that while maintaining active balances of any loan granted by regulated financial institutions, any employer may deduct from payroll the installments of the credit for the acquisition, construction, repair or improvement of housing, through the procedure established in the Regulation of this Law. Once registration is completed, the National Registry of Automatic Payroll Deduction must issue an electronic Registration Certificate with the respective registration number, which may be presented to the financial institution interested in granting a credit. This registration of payroll deduction authorization must be notified to the employer by the employee or mortgage creditor. CHAPTER III ALLOCATION OF RESOURCES FOR HOUSING FINANCING

ALLOCATION OF RESOURCES FOR HOUSING: The Honduran Bank for Production and Housing (BANHPROVI) must define in the Annual Budget Project for Operations and Investments, as well as in the Annual Operating Plan of the Institution, the minimum percentage of resources that must be allocated for financing housing solutions, in accordance with the goals of the Republic's Government defined for the Housing Sector. The percentage referred to in this Article must be supported by the Board of Directors of the Honduran Bank for Production and Housing (BANHPROVI) and must have the favorable vote of the State Secretary in the Departments of Housing and Human Settlements (SEVIAH), or its delegate in the Assembly of Governors. The resources of the Honduran Bank for Production and Housing (BANHPROVI) allocated for housing must be distributed under the conditions defined by the Assembly of Governors, with the favorable vote of the State Secretary in the Departments of Housing and Human Settlements (SEVIAH), or its delegate.

RESOURCES FOR INTEREST RATE COVERAGE: For the purpose of creating conditions that facilitate housing financing, the Honduran Housing Fund (FONHVIVIENDA) may allocate resources from its budget to establish a Trust, whose purpose is to offer interest rate subsidies to debtors of housing credit or lessees of financial lease operations of housing granted by financial entities, in accordance with the regulations issued by the Government of the Republic of Honduras. To the Trust referred to in this Article, resources from the Honduran Bank for Production and Housing (BANHPROVI) and other public institutions and any other institution that decides to participate, allocated to promote housing financing, may be allocated. Through the corresponding agreements executed with the participating financial institutions, the Government of the Republic of Honduras must define the conditions under which the resources of the Honduran Housing Fund (FONHVIVIENDA), allocated for the interest rate subsidy referred to in this Article, may be allocated to mortgage credits or financial lease operations of housing with purchase option granted by the aforementioned financial institutions or granted by non-profit non-governmental entities, and the other powers to carry out this type of operation. Resources allocated for interest rate coverage and a Social Interest Housing Bonus may coincide in the same housing solution, provided that the sum of these does not exceed the maximum amount established in Article 14 of this Law. CHAPTER IV SECURITIZATION OF MORTGAGE PORTFOLIO AND FINANCIAL LEASING

SECURITIZATION OF MORTGAGE PORTFOLIO AND FINANCIAL LEASING – MORTGAGE SECURITIES: Financial entities may issue mortgage and financial lease securities representative of credits granted to finance the construction and acquisition of housing, including their guarantees or securities representative of rights over them and over the guarantees that support them, when they have as their purpose to dispose of them in the capital market. Such securities must only have, from the respective issuers, the guarantees or commitments regarding the administration and financial performance of the assets, as provided in the corresponding emission regulations. Financial entities may also transfer their credits and lease contracts including the guarantees or rights over them and their respective guarantees, to securitization companies or to other institutions authorized by the Government of the Republic of Honduras, so that these may issue securities, under the conditions provided in this article, to be placed among the public. The National Banking and Insurance Commission (CNBS) must establish the requirements and conditions for the issuance and placement of the different securities issued in development of what is provided here, in accordance with the provisions of Decree No.8-2001 dated February 20, 2001 and published in the Official Gazette "La Gaceta" on June 9, 2001, Edition 29,499, which contains the Securities Market Law and the rules that amend, replace or regulate it.

SECURITIZATION COMPANIES FOR MORTGAGE ASSETS AND FINANCIAL LEASING: In accordance with what is established in the Securities Market Law, its Regulation and other applicable provisions and what is provided regarding securitization companies referred to in this Law, they have as their exclusive corporate purpose the securitization of mortgage assets and financial lease contracts that will be subject to the surveillance and control of the National Banking and Insurance Commission (CNBS), which must define the conditions for their constitution and operation. TITLE V INCENTIVES AND EXEMPTIONS TO PROMOTE ACCESS TO HOUSING

COMPENSATION OF SALES TAX ON CONSTRUCTION MATERIALS FOR SOCIAL INTEREST HOUSING: Builders who develop social interest housing have the right to compensation for Sales Tax (ISV) paid in the acquisition of materials for the construction of social interest housing. The compensation shall be made by means of a Credit Note, in a proportion of up to one quarter percent (4%) of the value registered in the deeds of sale of the new property as acquired by its purchaser, whose value does not exceed the maximum value of Social Interest Housing, in accordance with what is established in this Law. In accordance with this Law, the payment of taxes or duties, fees and surtaxes in force in Honduras, national or municipal, for the granting of construction and/or urbanization permits or licenses, environmental permits, plan review, payments for incorporation into the sanitary and drinking water system, charges for technical services provided by municipal, state and decentralized institutions, are hereby exempted, insofar as they relate to social housing.

INCENTIVES FOR SOCIAL INTEREST HOUSING FINANCING: New operations intended for financing social interest housing, through mortgage credits or financial lease operations of housing, shall not generate taxable income for a term of five (5) years, counted from the payment of the first amortization installment or monthly rent, as applicable. For social interest housing credits that have the backing of the reciprocal guarantee issued by the Reciprocal Guarantee Fund Management Companies, financial institutions have the exemption in the constitution of reserves for the part covered by the reciprocal guarantee in accordance with the rules for the evaluation and classification of credit portfolio issued by the National Banking and Insurance Commission (CNBS); likewise, social housing loans with issued guarantee are incorporated within the category of "Assets with zero percent (0%) Risk" up to the insured amount.

TAX BENEFIT FOR RETURNS ON MORTGAGE SECURITIES FOR HOUSING FINANCING: Financial returns accrued during the term of securities issued in mortgage portfolio securitization processes are exempt from Income Tax (ISR) and complementary taxes, provided that the period provided for their maturity is not less than five (5) years. The National Banking and Insurance Commission (CNBS) must regulate the other conditions for obtaining this benefit. For purposes of enjoying the benefit addressed in this Article, the securities cannot be reacquired or retained by their issuer. In no case shall the inflationary component or value maintenance of such securities constitute taxable income.

BENEFITS IN THE PAYMENT OF TRANSFER TAX FOR SOCIAL INTEREST HOUSING: Natural and legal persons accessing new and/or used social interest housing, which are financed or cofinanced with resources from the Social Interest Housing Bonus granted by the Honduran Housing Fund (FONHVIVIENDA), and in which the household beneficiary of the Bonus is a party, are exempt from the payment of Transfer Tax for Real Property.

TRANSITION REGIME: The provisions relating to the State Secretary in the Departments of Housing and Human Settlements (SEVIAH), created by means of this Law, and the Honduran Housing Fund (FONHVIVIENDA), must be applicable once the President of the Republic in Council of Ministers properly regulates its formation and operation; meanwhile, the public entities that as of the date of entry into force of this Law exercise functions related to housing policy and the allocation of Social Interest Housing Bonuses, must maintain competence for the exercise of the functions in their charge. The regulation in relation to Social Interest Housing Bonuses must continue to be applied until the State Secretary in the Departments of Housing and Human Settlements (SEVIAH) enters into operation and issues new regulations for this purpose. The Programs for the awarding of bonuses created within the framework of the National Housing Policy implemented by the National Commission on Housing and Human Settlements (CONVIVIENDA) must be incorporated for execution by the Honduran Housing Fund (FONHVIVIENDA).

REGULATION: The State Secretary in the Departments of Housing and Human Settlements (SEVIAH) is responsible for issuing the Regulation of this Law, after consultation and socialization with the different sectors of the Housing Sector, and the same must be prepared within ninety (90) business days following the publication of this Law. TITLE VI FINAL, TRANSITIONAL AND REPEALING PROVISIONS

LIQUIDATION OF THE SOCIAL HOUSING FUND (FOSOVI): The Executive Power is authorized to regulate the conditions under which the Social Housing Fund (FOSOVI), created by Decree No.167-1991 dated October 30, 1991 and published in the Official Gazette "La Gaceta" on December 16, 1991, Edition No.26,619, must be liquidated. The assets and rights resulting from the liquidation process must become part of the patrimony of the State Secretary in the Departments of Housing and Human Settlements, specifically to the Honduran Housing Fund (FONHVIVIENDA).

The Honduran Bank for Production and Housing (BANHPROVI) and other participating institutions are ordered to perform the liquidation of the funds transferred by the State Secretary in the Department of Finance, in execution of Decree No.229-2011 dated December 7, 2011 and published in the Official Gazette "La Gaceta" on January 14, 2012, Edition No.32,721, by means of which the financing for the construction of five thousand (5,000) housing units for the Basic Scale of the National Police and Auxiliary Personnel dependent on the State Secretary in the Department of Security affiliated with the Association of Police and Auxiliary Personnel (ASODEPA) was authorized. The State Secretary in the Department of Finance is ordered to transfer the financial resources resulting from the liquidation performed by the Honduran Bank for Production and Housing (BANHPROVI) to the State Secretary in the Departments of Housing and Human Settlements. Likewise, the Executive Power is authorized to liquidate other public entities or housing programs that have been created with the same purposes set forth in this Law, for the State Secretary in the Departments of Housing and Human Settlements (SEVIAH), and/or for the Honduran Housing Fund (FONHVIVIENDA), or to define the conditions under which such entities must be linked to the new institutional framework, as dependencies of the entities created in this Law. The President of the Republic in Council of Ministers may form boards or other bodies in charge of executing the liquidation and/or restructuring processes referred to in this Article.

The Honduran Bank for Production and Housing (BANHPROVI) and other participating institutions are instructed to perform the liquidation of the funds transferred by the State Secretary in the Department of Finance, in execution of Decree No.401-2013 dated January 20, 2014 and published in the Official Gazette "La Gaceta" on March 26, 2014, Edition No.33,389, by means of which the financing for the construction of twelve thousand (12,000) housing units for teachers and auxiliary personnel of the different educational levels of the country affiliated with the COMMITTEE FOR TEACHER AND AUXILIARY HOUSING IN HONDURAS (PROVIDOAH) was authorized. The State Secretary in the Department of Finance is instructed to transfer the financial resources resulting from the liquidation performed by the Honduran Bank for Production and Housing (BANHPROVI) to the State Secretary in the Departments of Housing and Human Settlements. Likewise, the Executive Power is authorized to liquidate other public entities or housing programs that have been created with the same purposes set forth in this Law, for the State Secretary in the Departments of Housing and Human Settlements (SEVIAH), and/or for the Honduran Housing Fund (FONHVIVIENDA), or to define the conditions under which such entities must be linked to the new institutional framework, as dependencies of the entities created in this Law. The President of the Republic in Council of Ministers may form boards or other bodies in charge of executing the liquidation and/or restructuring processes referred to in this Article.

REPEALING PROVISIONS: Decree No. 167-1991 dated October 30, 1991 and published in the Official Gazette "La Gaceta" on December 16, 1991, Edition No. 26,619, containing the Law of the Social Housing Fund (FOSOVI), and Decree No. 348-2002 dated October 24, 2002 and published in the Official Gazette "La Gaceta" on November 19, 2002, in Edition No. 29,939, containing the authorization of the housing financing bonus FONAPROVI 2002, are hereby expressly repealed.

Repeal Decree No. 229-2011 dated December 7, 2011, published in the Official Gazette "La Gaceta" on January 14, 2012, Edition No. 32,721 and its amendments, related to the authorization of financing to the National Police.

Repeal Decree No. 401-2013 of January 20, 2014, published in the Official Gazette "La Gaceta" on March 26, 2014, Edition No. 33,389 and its amendments containing the LAW OF HOUSING FINANCING FOR TEACHERS.

GRADUAL AND PROGRESSIVE BUDGETARY SUFFICIENCY: In order to achieve the sufficiency and sustainability of the Social Interest Bonus program referred to in Article 21 of this Law, the allocation of budgetary resources that must be appropriated by the State Secretariat in the Office of Finance within the General Budget of the Republic approved each year by the National Congress, must consider the following incremental table of gradual and progressive adjustment: Year Allocation 2020 between 51,000 to 77,000 minimum wages 2021 between 64,000 to 80,000 minimum wages 2022 between 80,000 to 100,000 minimum wages 2023 between 100,000 to 125,000 minimum wages 2024 between 125,000 to 150,000 minimum wages As of 2025 it shall be greater than 150,000 minimum wages

For the determination of the budgetary allocation of Social Interest Bonuses referred to in Article 21 of this Law, the State Secretariat in the Office of Housing and Human Settlements must present to the Cabinet of Ministers for its corresponding approval a plan for the allocation of budgetary resources, to increase them once the minimum value referred to in Article 21 is reached, and the allocated budget floor shall be the one established in the aforementioned Article and cannot be reduced.

Trusts established by the State in its capacity as settlor shall be understood to be governed by the rules established in the Commercial Code and in the Trust Agreement that is executed; for such purposes, the patrimony or assets that are the object of the legal transaction of the trust implies the assignment of rights and transfer of ownership in favor of the trustee, who before third parties shall have the status of owner of the trust rights or assets and shall exercise its ownership powers in accordance with the rules established for its operation.

EFFECTIVE DATE: This Decree enters into force as of the date of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Chamber of the National Congress, on the twenty-third day of the month of January of two thousand twenty. ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROZA MARTÍNEZ SECRETARY To the Executive Branch. Therefore. Let it be executed. Tegucigalpa, M.D.C., February 17, 2020 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF THE PRESIDENCY EBALJAIR DÍAZ LUPIÁN