HISPANIC FEDERATION RELEASES INDEPENDENT REPORT ON THE IMPACT OF SHORT-TERM RENTALS IN PUERTO RICO & COMMUNITY-DRIVEN SOLUTIONS TO ADDRESS CONCERNS
For Immediate Release: February 21, 2024
Contact: media@hispanicfederation.org
PUERTO RICO – Hispanic Federation, the nation's premiere Latino nonprofit membership organization, today released an independent, comprehensive report regarding the impact of short-term rentals in Puerto Rico and the community-driven solutions that can protect and preserve communities. The report - entitled Proposals for Reducing the Impact of Short-Term Rentals (STRs) on Community Displacement - highlights how the dramatic increase in STRs combined with the lack of robust regulation has led to significant community challenges across the archipelago such as limited housing access, displacement, and quality of life concerns. It also proposes community-driven solutions to mitigate these problems through fair and balanced regulations of this fast-growing tourism business.
The community-driven recommendations include classifying certain short-term rentals as businesses and applying the licenses, permits, and other applicable commercial activity requirements; distinguishing between owners of multiple short-term rental units from those with primary residences they occasionally rent out to supplement their income; increasing the room tax from its current 7% to a range of 9-11% to support oversight and public services; and community participation in decision-making; among other specific regulatory changes. None of the report's participants recommended a ban on STRs, noting that there are some benefits of this commercial activity. However, they pointed out the urgency of regulating them to achieve a fair balance between these benefits and the negative impacts they may have on the community in which they are located.
The report was commissioned by Hispanic Federation to El Enjambre and was produced through interviews with diverse, affected communities, STRs sector representatives and experts, and other key stakeholders. With this report, Hispanic Federation is hoping to elevate community voices to inform and strengthen regulation of the STR industry that will protect communities from displacement and promote long-term housing access.
“With so much to offer visitors, tourism will always be an important part of Puerto Rico’s economy. However, it cannot come at the expense of Puerto Rico’s residents and communities. Lawmakers in Puerto Rico are responsible for balancing the opportunities created by short-term rentals with their primary duty to protect the rights and needs of communities. Ultimately, we hope this report will promote productive dialogue among the government and other stakeholders and present the urgency to pass strong and fair regulation now,” said Frankie Miranda, president and CEO of Hispanic Federation.
In less than a decade the number of STRs in Puerto Rico has risen from approximately 1,000 in 2014 to more than 25,000 in 2023. According to the report, that increase has already led to several challenging changes in community dynamics and housing access. The changes have also had an impact on the residents’ quality of life and raised concerns about displacement, gentrification, and fair business competition.
Mariana Reyes, Director of Taller Comunitaria la Goyco, a community-based nonprofit on Loiza street in San Juan that participated in the report, said, “In the sector of Loíza street, housing options have reduced significantly, however, there are 622 short-term rental units available. It is necessary to regulate that use to protect communities.”
Gloria Cuevas, a displaced community resident from Rincon and now living in Mayaguez who shared her experiences in the report, said, “As a person who has been displaced multiple times by owners who preferred to convert their properties into short-term rentals, I understand that this phenomenon revealed the gap that exists between social classes and that every day is more present on our archipelago, as it is in many places of the world. The ones with the most resources continue acquiring while those of us with less resources keep losing.”
Between September and December 2022, El Enjambre met with residents from diverse impacted communities including Aguadilla, Rincón, Cabo Rojo, San Juan, and Culebra, among others, as well as experts in planning, law and real estate and other key stakeholders such as the Association of Condominium Titleholders, owners of other hospitality businesses, and the Association of Hotels and Tourism. The report also included an analysis of STR regulations implemented in US and international cities.
“The report seeks to articulate and present the point of view and recommendations of communities with a high density of short-term rentals, focusing on the impacts on housing and community life,” said Alejandro Cotté Morales, cofounder of El Enjambre and coauthor of the report, along with Lyvia N. Rodríguez Del Valle, Mikael Rosa Rosa, and Raúl Santiago Bartolomei.
To continue the discussion started by the report and identify potential policy recommendations, Hispanic Federation, in collaboration with the University of Puerto Rico Graduate School of Planning, and El Enjambre Colectivo, will hold a one-day summit in San Juan entitled, Nos Quedamos: Alternativas Justas Para Regular Los Arrendamientos a Corto Plazo en Puerto Rico on Thursday March 7, 2024. The summit will feature multisector local, state, and international voices with experience on the topic of STR and housing and includes a keynote by Leilani Farha, current Global Director of The Shift and former United Nations Special Rapporteur on the right to adequate housing. It will be attended by community leaders, hotel and tourism industry and government representatives, experts on housing and planning, among others. Registration is free and open to the public.
With respect to elevate the dialogue on the impacts of short-term rentals, Dulce del Río Piñeda, organizational coordinator for Mujeres de Islas, a community-based nonprofit in Culebra that also participated in the report expressed, “It’s up to each one of us to elevate the voices of the residents who inhabit Culebra, walking together towards collective solutions to ensure the permanence of this and future generations, the tenancy of vulnerable communities, and the right to return of those who could not stay. If we don’t have where to live, all the rest will go, the essence of Culebra will vanish.”
ABOUT HISPANIC FEDERATION’S WORK IN PUERTO RICO
Hispanic Federation's long-term commitment to Puerto Rico began more than five years ago, when Hurricane Maria made landfall. HF was a first responder to the crisis and has been a major funder and driver of Puerto Rico’s recovery efforts, investing more than $53 million in philanthropic investments to advance Puerto Rico’s just and sustainable recovery from natural disasters and the COVID-19 Pandemic. HF has collaborated with over 150 community organizations and dozens of major initiatives across Puerto Rico, contributed to over 250 rooftop solar energy projects, and bolstered over 2,500 small businesses, micro-entrepreneurs, and farmers. In September of 2022, Hispanic Federation released a comprehensive report - Building a Stronger and More Resilient Puerto Rico - detailing the success and impact of these recovery efforts and the road ahead to build Puerto Rico’s resilience. An update on this work was provided in October 2023.
ABOUT HISPANIC FEDERATION:
Hispanic Federation (HF) is a nonprofit membership and advocacy organization, founded in 1990, committed to empowering and advancing the Hispanic community, with a focus on low-income, marginalized and immigrant Latinos. With programs in 40 states, Puerto Rico, the U.S. Virgin Islands and the District of Columbia, HF’s focus areas include immigration, economic empowerment, civic engagement, disaster relief, philanthropy, education, health, and the environment. HF also maintains ongoing public education campaigns and meets the organizational development needs of its member agencies through grant-making and capacity-building assistance.
ABOUT THE REPORTS AUTHORS, EL ENJAMBRE:
El Enjambre accompanies and advises organizations that work towards justice and equity, and that seek to strengthen their work. Its cofounders, Lyvia N. Rodríguez Del Valle and Alejandro Cotté Morales each have more than 28 years of experience in participatory planning, action, and reflection and in the management of public policy, innovative instruments, and institutions with an agenda defined by the grassroots community. Lyvia is a regional and urban planner with ample executive experience and in topics of self-managed settlements, tenancy, city and environment. Alejandro is an organizer and community social worker with a doctorate in political science. Both are adjunct professors at the University of Puerto Rico. For this report, the team was joined by Mikael Rosa Rosa, political science doctoral candidate at the University of Chicago, and by Raúl Santiago Bartolomei, housing expert and associate professor in the Graduate School of Planning at the University of Puerto Rico, Rio Piedras.
