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Puerto Rico hearing orders review of condominium boards; consumer agency backs probe but warns of limits
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Summary
Representative Ricardo Chino Reyes, president of the House Commission on Older Adults and Social Welfare, opened a public hearing Oct. 8 to consider House Resolution 267, which directs a legislative review of condominium boards’ administrative and financial practices.
Representative Ricardo Chino Reyes, president of the House Commission on Older Adults and Social Welfare, opened a public hearing Oct. 8 to consider House Resolution 267, which directs the House committees on Housing and Urban Development and Older Adults and Social Welfare to investigate administrative and financial practices of condominium owners’ associations in Puerto Rico.
The Department of Consumer Affairs (DACO) expressed support for the resolution’s goals but warned that its legal authority is limited. Licenciado Gabriel J. Cicardo Ucasio, appearing on behalf of DACO Secretary Valery Rodríguez Erazo, said the department’s role under the condominium law is to adjudicate controversies about noncompliance with the law, the master deed and internal rules, not to audit or otherwise investigate the administrative or fiscal management of condominiums. He told the committee, “La ley de condominio no faculta al DACO investigar ni fiscalizar ni auditar la gestión administrativa y fiscal de los condominios.”
The hearing focused on several parts of the resolution, including handling of monthly fees, insurance funds, access to condominium financial records, and protections for older residents. Cicardo said DACO supports the measure’s purpose to identify areas for improvement and to better protect titleholders, but cautioned that an active investigatory role could compromise the agency’s quasi-judicial impartiality in pending adjudications. He said DACO is willing to “ilustrar a esta comisión sobre los procedimientos administrativos internos y el trámite de las querellas” without assuming the investigatory function requested in the resolution.
Cicardo also addressed expedited administrative procedures for older adults established by Law 147 of Sept. 27, 2019, saying the statute requires prioritizing cases brought by people of advanced age but that the law’s timelines do not always result in faster resolutions in condominium disputes because many cases demand expert evidence, accounting reviews and documentary proofs. “Debido a la naturaleza y complejidad de las controversias en materia de condominios… los términos de la ley 147 no siempre garantizan una resolución expedita a favor de las personas de la tercera edad,” he said, while noting DACO gives priority and differentiated attention to complaints filed by older adults.
Committee members present included Representative Roberto López and Representative Luis Junior Pérez Ortiz; Pérez Ortiz asked follow-up questions about DACO’s offer to explain internal procedures and the scope of information the agency could provide to the panel. The record shows no formal vote or directive during the portion of the hearing transcribed here.
The exchange clarifies the limits of DACO’s current statutory authority under the condominium law and the Uniform Administrative Procedure Act: DACO can adjudicate disputes but said it is not statutorily empowered to perform fiscal audits or administrative oversight of condominium boards. The agency recommended that legislative findings from the investigation could inform future amendments to the condominium law and to DACO’s regulations.
The commission did not make a final decision during the recorded remarks. DACO said it would provide additional information if the commission requests it and reiterated its commitment to protect consumers within the powers granted by its organic law.
