DOMINICAN REPUBLIC Law and Practice Contributed by: Fabio Guzmán Ariza, Julio Brea Guzmán, Alfredo Guzmán Saladín and César Calderón, Guzmán Ariza
4. Planning and Zoning 4.1 Planning and Zoning Framework
individual person with a permanent establishment in the country. All of the following processes against the debtor will be deemed as automatically stayed or prohibited once the court approves the bankruptcy petition: • all legal, administrative, tax or arbitration claims or lawsuits, including foreclosure and sequestration processes; • computation of liquidated damages clauses and contractual or judicial penalties; • disposition of a debtor’s assets, including the filing of a non-registered deed of sale, unless otherwise authorised by the law; and • payment against debts originated prior to the restructuring request. These processes will remain stayed during the restruc - turing plan’s execution, thereby prohibiting any asset seizure actions by the creditors. The stay will be lifted if the restructuring plan fails and the court authorises the debtor’s asset liquidation. During the restructuring’s conciliation and negotiation stage, all creditors, including secured ones (registered securities, mortgages and pledges, etc), that wish to have voting rights assigned to them for the execu - tion of the restructuring plan must formally register their credits before the Bankruptcy Court, prior to the court-appointed mediator’s submission of the final report to the court. 3.10 Taxes on Loans When obtaining a mortgage, it is essential to consider the mortgage registration government taxes, which amount to 2% of the loan’s value. In some cases bank institutions can obtain an exemption on the payment of this 2% tax if the operation includes the payment of the title transfer tax of 3%. Additionally, some lenders may impose other fees or charges related to mortgage processing in addition to actual interests on said loans, and these may vary by institution.
Land use, development, design and construction in the Dominican Republic are governed by a combi - nation of national statutes and municipal regulations. The main law governing zoning is Law 975/44 of 29 June 1944 on urbanisation and public adornment. Additionally, Law 64-00 of 25 July 2000, the General Environmental and Natural Resources Law, sets forth zoning provisions for specific regions and imposes limitations on the use of lands declared as national parks and protected areas. Construction methods are regulated primarily by the Ministry of Public Works and the Ministry of Environment and Natural Resources, as constructions must comply with environmental regulations. Exceptions apply in areas designated as protected spaces, such as the Colonial Zone, where design, construction and appearance must be pre- approved by the Ministry of Tourism. All land use matters are administered by three main authorities. Municipalities are responsible for local land use clearance and establish the general rules regarding use (eg, residential, commercial, industrial, mixed), density and maximum building height. The Ministry of Tourism administers planning and zoning in tourist areas. The Ministry of Environment and Natural Resources oversees any construction or development that may affect the environment. Real estate laws are national in scope and application. 4.2 Development Process, Challenges and Enforcement To develop a new project, approvals and permits must be obtained from multiple government agen - cies. Land use clearance is processed locally at the city hall concurrently with the submission of an envi - ronmental authorisation. The Ministry of Environment and Natural Resources evaluates the environmental impact of the project through a process that includes a public hearing, which allows third parties to partici - pate and raise objections. Projects in tourism areas are reviewed by the Ministry of Tourism’s Department of Planning. The National Water System evaluates and approves the hydraulic and sanitary design plans. Once approvals are obtained from the preceding enti -
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