Streamlined Permitting for Small Businesses and Post-Disaster Reconstruction in Puerto Rico

In response to the challenges brought by hurricanes Irma and María, the 2020 earthquakes, and the COVID-19 pandemic, Puerto Rico’s Legislature has approved important amendments to the Reform of the Puerto Rico Permitting Process Act (Act 161-2009). These amendments are designed to simplify and accelerate the permitting process for small and medium-sized enterprises (or “PYMEs”, based on the Spanish term) while enabling faster government reconstruction efforts following natural disasters.

Under the revised Article 8.16 of Act 161, PYMEs may now obtain a use permit automatically through a self-certification process. This is possible when the applicants certify under oath that they meet all applicable legal and regulatory requirements and that their business activity has no environmental impact, or when a licensed engineer or architect certifies compliance with zoning rules, district parameters, fire prevention standards, health regulations, and any other applicable requirements. This change seeks to reduce bureaucratic delays, cut costs, and encourage business development, while still maintaining safeguards against misuse.

The Act also amends Article 9.11 of Act 161 to designate as “Exempt Work” any public project carried out by a Puerto Rico government agency, public corporation, instrumentality, or municipality to repair or reconstruct infrastructure damaged by atmospheric events, provided the goal is to restore it to its pre-event condition. These projects will not require a construction permit, allowing for more agile post-disaster recovery. The exemption extends to modifications that address design flaws, enhance resilience, or comply with federal requirements, but it does not apply to works in historic sites or other specially regulated areas.