The new regulations will extend the permits for the homes from 30 years to 75 years, although owners will have to pay an additional annual fee. Authorities estimate there are 24,000 homes affected by the Coastal Act, Expansion reports.
The decision will certainly be controversial in many circles, including with environmentalists who believe developers should never have been allowed to build in the public coastal zones. But for the owners of the existing homes and the projects, the new legislation will provide some level of guarantee about the future.
Thousands of homes were facing the possibility of demolition. The 1988 Coastal Law provided 30-year concessions, which were due to expire in 2018. In addition to the homes, the measure affects hundreds of hotels and bars.
The new regulations restrict the owners from expanding their properties, but they will be able to upgrade or sell, with the extension in place, Expansion notes.
Government officials promoted the jobs and revenue that will be generated by allowing the homes and tourist-oriented businesses to stay. Owners will have to pay a 6 percent tax on the cadastre value of their property.
But Secretary of State for Environment Federico Ramos said the measure is not about raising revenue, noting that the new legislation “prohibits new buildings on the coast”, Expansion reports.