Consolidating property

Approach The government of Peru has maintained a close policy dialogue with the Bank in areas such as institutional reform and decentralization.

In order to achieve multi-institution participation and impact, project components were directly linked to the country’s development program and cross sector activities with the Ministries of Justice and Housing, as well as the armed forces (through the IGN).

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Consolidating debt through a new mortgage is one way of refinancing an existing loan.

Challenge With the creation of a reliable and accessible property rights system in Peru, the Project hopes to promote growth and reduce poverty in a sustainable way, as tenure security stimulates private investment and fosters the process of slum upgrading through increased access to water and sewage services, increased investments in housing structures, and the reduction of households in unsuitable conditions.

Furthermore, as the result of an increased collection of property taxes, participating municipalities will need to become more accountable as new sources of revenue will increase citizens’ demand for service delivery.

For example, the part in the city, and the part not in the city may have different tax rates.

This is important because if the information about the property is found to be inaccurate, the consolidation application may be denied, forcing the landowner to begin the process all over again.

Sometimes this is required for administrative purposes.

Other times requesting a consolidation can allow you to receive only one bill.

Where subdivision applications need to be made to Local Authorities (in terms of Ordinance 15 of 1986 and 20 of 1986), CDJ recommends a town and regional planner be used.

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