Mexico City, August 2024
On January 29, 2024, certain amendments to the Civil Code for the Federal District (“Code”) and Mexico City’s Housing Law (“Housing Law”) became effective, pursuant to provisions related to the leasing of residential housing (provisions considered of public order and social interest that cannot be waived by agreement between the parties). The primary objective of these amendments is to protect the balance in the leasing market, fostering and promoting affordable rental housing for low-income people in Mexico City (the “Reform”).
Articles 2448-D and 2448-F of the Code and Articles 1, 5, 12, 13, 21, 24, 26, 53, 59, 60, and 73 of the Housing Law were amended in accordance with the following: Article 2448-D of the Code, prior to the Reform, established 10% as a limit to the annual increase of the amount paid monthly for rent; a provision that, following the Reform, now establishes that the increase on the agreed monthly rent may never be greater than the inflation rate reported by the Bank of Mexico in the previous year.
The Registry will not be public (except by judicial resolution) and will be regulated in accordance with the criteria of the Law of Transparency, Access to Public Information, and Accountability of Mexico City (Ley de Transparencia, Acceso a la Información Pública y Rendición de Cuentas de la Ciudad de México) and the Law of Protection of Personal Data in Possession of Obligated Parties of Mexico City (Ley de Protección de Datos Personales en Posesión de Sujetos Obligados de la Ciudad de México). It is important to point out that no sanction will be enforced on any lessor that decides not to register its current lease agreements.
In accordance with the Reform to the Housing Law, Mexico City’s government will establish several programs targeted to various sectors of the Mexico City community, with priority given to the low-income population, workers, single mothers, and young people between 18 and 35 years old. These programs will seek to promote equality and equity conditions that guarantee and promote the right to affordable rental housing. Additionally, Mexico City’s government will propose to the Ministry of Finance administrative and/or tax facilities to support the construction of this type of housing.