Puerto Rico committee hears concerns over proposed procurement rules for gated-community associations

The House of Representatives' Commission on Municipal Affairs held a public hearing March 12 on Proyecto de la Cámara 306, a proposal to amend article 3.10 of Law 107 (the Puerto Rico Municipal Code) by adding a new subsection to set procurement rules for councils, boards or associations of residents of gated or access-controlled developments. Presenters representing building and condominium associations urged lawmakers to revise the bill to avoid imposing excessive administrative and financial burdens on voluntary resident associations.

The bill under review would, in its current draft, require a minimum of three bona fide quotations for every acquisition and a formal auction process for any contract that reaches or exceeds $10,000, and would require associations to adopt internal regulations documenting procurement procedures. At the hearing, industry and community representatives said those requirements, while intended to improve transparency, could be impracticable in many Puerto Rico communities.

Why it matters: proponents of the measure told the commission they want greater transparency and controls to reduce conflicts of interest and mismanagement. Opponents and adviser groups said the bill’s rigid three-quote rule and mandatory auction threshold would be disproportionate for small, volunteer-run associations with limited budgets and administrative capacity, and could delay urgent maintenance or security work.

Key testimony and recommendations

Licenciado Roberto Lefrán Morales, representing the Asociación de Constructores de Hogares de Puerto Rico, told the commission that his group "no podemos estar de acuerdo con el requerimiento de subastas o cotizaciones" because it would impose legal and…