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Table Value of Construction Used for the Calculation of Houses Leases

Through a resolution issued on November 20th, 2012, in the Official Gazette of the Bolivarian Republic of Venezuela No. 40.054, it is established:
Table Value of Construction (Bs./Mts2) by types of single family and multifamily houses leases which will be used for the calculation of fair value established by the Law for Adjustment and Control of Housing Lease.

This table contains the values of constructions based on article 74 of the Law for Regulation and Control of Rents, in order to apply a fair value to leases, which will be determined by the National Housing Leases Superintendence within its legal capabilities. The norms contained in the present resolution are obligatory to all subjects regulated by the Law.

It is understood as:
Single Family Homes: Those in differentiated plots, which serve as a home for a single family. They can be isolated, townhouses or next to each other and even those dwellings designed to be inhabited by a single family but are rented out in sections such as a living facilities are single family homes.
Multi Family Homes: Buildings constructed as apartments, containing various families with services and good shared.

An inspection table will be applied for single and multi family homes in order to obtain scores that determine the Value of Construction in order to apply the Value of Reposition (VR) in accordance with construction aspects in their structure.

In order to value internal works and exterior works done afterward, the proprietor must indicate their value through a certified document in the competent municipal office.
Formula to determine the Rent Fee
Value Scores and Formulas for Calculation, indicated in the Ruling of the Law for the Control and Regulation of Rent.

The Rent Fee is determined by a formula indicated in the Article 23 of the ruling which contains the following values: RF=(VH/12) x %AR

RF: Value of the Rent Fee.
VH: Value of the Home.
%AR: Percentage of Annual Rentability, which must oscillate between 3% for multi renter or 5% for the single renter (Article 23 of the Ruling for the Law of Rent Control).

That way, the Value of the Home is calculated with the following formula: VH= (AVH/MCI) x MS
AVP: Actual Value of the Property.
MCI: Meters squared that con be sold in the Property.
MS: Meters squared in the Property.

The Actual Value of the Property is calculated with the formula: AVP=RV x (1-K/100) x SV x GV
AVP: Actual Value of the Property.
RV: Reposition Value.
K: Depreciation of the property, found in a table called “Condition of the Property” in Article 21 of the Ruling.
SV: Coefficient of Seismic Vulnerability found in article 22 of the Ruling.
GV: Geographical Variation, found in a table called “Coefficient of Geographical Variation” found in Article 24 of the Ruling.

The Value of Reposition is determined in the following formula: VR= VAC x MCI
VAC: Value of Annual Costs of square meter of construction based on the type of construction of the property, which is found on the table called “Types of Single and Multifamily Homes” found in Article 20 of the Ruling.
MCI: Total Square Meters of the Property.
 
In the cases in which the renter acquires the property of the home in accordance with the methods found in the present resolution and the Law regulating the matter, and pretend to sell it are forced to do so under the same circumstances and calculations. In case of contravention, the new buyer can request and sue the difference in the amount corresponding with the calculation of a fair price done at the date in which the sale was done.

The values specified in the present resolution will be valid until December 31st of 2013.
The correct application of the present Resolution is the Responsibility of the National Superintendence of Rent Control which will enter into vigor on the date of its publication in the Official Gazette of the Bolivarian Republic of Venezuela, which was November 20th, 2012.