What's Happening?
Puerto Rico is facing a significant housing crisis exacerbated by gentrification, particularly in areas like Santurce, San Juan. This crisis is driven by tourism development and an influx of U.S. citizens
taking advantage of tax incentives under Acts 20, 22, and 60. These laws, which offer tax benefits to new residents, exclude long-term Puerto Rican residents, contributing to displacement. In response, community groups are exploring models like the Permanent Real Estate Cooperative (PREC) to promote community ownership and prevent displacement. This model, developed in collaboration with the People of Color Sustainable Housing Network and the Sustainable Economies Law Center, aims to remove real estate from the speculative market and foster community stewardship.
Why It's Important?
The housing crisis in Puerto Rico highlights broader issues of economic inequality and displacement, which are prevalent in many urban areas across the U.S. The PREC model offers a potential solution by promoting community ownership and reducing reliance on speculative real estate markets. This approach could empower local communities, particularly marginalized groups, by providing more stable and affordable housing options. The success of such models could influence housing policies and practices in other regions facing similar challenges, promoting more equitable urban development.
What's Next?
The implementation of community ownership models like PREC in Puerto Rico requires legal and financial support. Advocates are calling for more flexible cooperative housing laws and sustainable funding to support these initiatives. There is also a need for narrative change to shift public perception towards community-based solutions. Collaboration with organizations like the Kataly Foundation, which supports integrated capital strategies, could provide the necessary resources to advance these efforts. The ongoing dialogue and research into community ownership models will be crucial in addressing the housing crisis and preventing further displacement.
Beyond the Headlines
The housing crisis in Puerto Rico is not just an economic issue but also a cultural and social one. The influx of high-net-worth individuals and tourists is changing the cultural landscape, often at the expense of local communities. The PREC model not only addresses housing affordability but also aims to preserve cultural heritage and community identity. This approach challenges the dominant narrative of development and progress, advocating for a more inclusive and sustainable model of urban growth.
