28 of October of 2020
Renovación urbana y titularización del impuesto predial

The Colombian Ministry of Housing, by means of Decree 1382 of 2020, established the parameters, conditions and requirements that must be met by those municipalities seeking to finance infrastructure or urban projects through the securitization of the future collection of the property tax, generated in the areas of influence of such projects. 

In order to define the strategic projects of urban renewal and related urban infrastructure that can be financed, the municipality or district should prepare an urban pre-feasibility and financing study of the project, for which the following factors should be taken into account: the diagnosis of the problem, the description of the project, the identification of the affected population, the costs, the study of the real estate market and a study that determines the increase of the unified property tax that will be generated in the area of influence.  

For each project, the study must contain the identification of the urban infrastructure, the link between the urban infrastructure and the costs and schedule for its execution.

The Ministry of Treasury clarified that this this decree is applicable only for projects linked to strategic urban renewal plans. 

According to the Decree, the construction of public facilities, road infrastructure, transportation infrastructure, public service infrastructure; restoration, preservation and defense of cultural heritage and the environment, and other urban supports inherent to the strategic project of urban renewal will be understood as urban infrastructure and therefore susceptible to be financed through this mechanism.

To establish the need to apply this financing instrument, an urban pre-feasibility and a project financing study must be approved, to identify the nature and cost of the urban infrastructure project. In addition, the Secretary of Treasury and the Secretary of Planning of the corresponding municipality should verify the potential sources of financing for urban infrastructure to determine the need of using the securitization alternative of the future collection of the property tax.

According to the decree, the property tax shall be understood as the unified value that could be collected in the area of influence of the infrastructure project within the fiscal period prior to that in which the issuance of titles is carried out.

The municipalities that seek to use this mechanism must understand that these strategic plans refer to projects contemplated in the Zoning Plan (Plan de Ordenamiento Territorial) or in the respective plan for each municipality or district.

See full text of Decree 1382 of 2020


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