by Rod Hughes

A bill to pardon hardship cases of those who contracted public housing but have fallen far behind in their payments has passed its first reading in the the Legislative Assembly. The current law stipulates that those who do not pay back the extremely soft loans of public housing within 20 years will face foreclosure and, indeed, some legal processes are already in court.

In the 1980s, the Banhvi housing bank was created and Costa Rica, faced with a housing shortage and a population of workers who could not muster the down payments to own their own homes, began an ambitious public housing program that has continued into the present time. The presentation of housing “bonds” became a nearly monthly ceremony.

Many of the original mortgage contractors have disappeared but the debts incurred to BANHVI have lived on. At least 2,100 families were in danger of losing their shelter. Some, who had contracted their homes with such now defunct entities such as Banco Anglo or Mutual Guanacaste, had not idea whom to pay. Others suffered hard luck, such as incapacity of the breadwinner.

In many cases, the legal costs of foreclosure would be larger than anything the bank could recoup. The original debts were incurred in inflation-eroded colones and the tiny houses themselves are in most cases sadly deteriorated. The 35 votes for the bill underscores the general approval the lawmakers felt.