What's happening? The municipality of Isabela will hold its first live public auction of public nuisance properties on June 25, along with a new format in Puerto Rico: a public affordable housing auction aimed at residents of the town, people with low or moderate incomes, and families affected by natural disasters.
The day will be divided into two events at the Anfiteatro Justo Méndez Cabrera. The public affordable housing auction will be at 10:00 a.m. and will include two properties. Only buyers who meet prequalification requirements set by the municipality may participate.
Later, at 1:30 p.m., a live public auction of public nuisance properties will be held, open to all types of buyers, including businesses, in which five additional properties will be auctioned.
There will also be a pre-auction on June 4 to answer questions about the process.
Why does it matter? Isabela is the second municipality, after San Lorenzo, to use the public auction format to sell public nuisance properties, one of several ways mayors are addressing this issue. The northwestern Puerto Rico town uses the guidance of the Centro para la Reconstrucción del Hábitat (CRH), a nonprofit dedicated to addressing the problem of deteriorated and abandoned properties.
Isabela is estimated to have approximately 2,000 public nuisance properties, of which 368 have been investigated and 115 have been officially declared nuisances, Militza Salamanca, special assistant to Mayor Miguel Enrique "Ricky" Méndez Pérez, told Platea.
In addition to the seven properties to be auctioned in the first sale, another 10 could be auctioned soon, Salamanca said. She is the contact listed on the Isabela Public Nuisance Program page.
Learn how the 1️⃣ affordable housing auction and the 2️⃣ live public nuisance auction work, who can participate and how.
1️⃣ Affordable housing auction
How does the affordable housing auction work?
The affordable housing auction is a type of public auction focused on "people with limited resources, who do not own property, who live in Isabela and who can make structural repairs to the homes," Salamanca explained. The income limit is the one set by the federal government for programs such as Section 8 ($20,000–$70,000 depending on household composition).
In this case, payment for the property may be made through a mortgage loan, which is not an option in the other type of public auction, but buyers must meet a series of requirements set by the municipality, including prequalification.
Properties in this category may not be as structurally damaged as others that go to auction, since the idea is that people can repair them with a reasonable investment, Salamanca explained.
"We are not only here to sell a house for the municipality's coffers. What we want is to help families. That is our mayor's policy, and it is what the regulations established for the sale of public nuisance properties through the affordable housing auction set out."
Javier Gutiérrez, president of the Junta de Subastas del Municipio de Isabela
What properties will be available?
Two properties will be auctioned on June 25 in the affordable housing category:
Item 1 (IS-96): Property located at Lot 71, Ave. Lulio E. Saavedra Blasco, Bo. Pueblo, Isabela. Single-family property of 318.05 square meters. Minimum value: $65,000
Item 2 (IS-115): Property located at Carr. 459 Km.14.4, Bo. Bejucos, Isabela. Single-family property of 481.78 square meters. Minimum value: $53,000
Who can participate?
In this auction format, bidders must meet three priorities established by the municipality to prequalify:
Being a resident of the community where the property is located, a resident of Isabela, or a child of parents who reside in Isabela. After those options are exhausted, the auction opens to the general public.
Preference will be given to individuals or families who qualify as low- or moderate-income.
Preference will also be given to people with R3 Program vouchers (for Repair, Reconstruction or Relocation), people who have lost their property in natural disasters, those who want to buy their primary residence, or those who own a home that is in dangerous condition with no viable path to rehabilitation and are willing to make a permuta (an exchange of one property for another). If two or more people share the same conditions, a lottery will be held in the presence of the qualified applicants, according to the Pliego de Especificaciones de la Subasta Pública SF-2026-06.
To participate in the auction, you must prequalify. Interested parties who meet any of the three priorities must visit the Oficina del Alcalde en tu Comunidad to request the documents and prequalify, a requirement to be considered in the affordable housing auction.
Presenting a mortgage prequalification is also "an essential requirement" from a financial institution or cooperative, confirming that you can afford the property and repairs.
Prequalification deadline: Thursday, June 18, 2026
How do I prequalify to participate in the affordable auction?
📝 Sign up in the registry of interested parties and fill out the application at the Oficina del Alcalde en tu Comunidad or by requesting it through juntadesubastas@isabela.com.pr.
📍 Present proof of being a bona fide resident of Isabela for at least the past year, with documents such as an electricity, water or internet bill; a landlord certification in rental cases; or state or federal tax returns.
🧑🧑🧒🧒 If you have family members in Isabela, provide their names. The municipality will conduct the appropriate investigation to verify the accuracy of the stated relationship.
💵 Income qualification within the federal Section 8 program range or within the range of $20,000 to $70,000 annually. People with incomes below $20,000 may be considered if they demonstrate the financial capacity to repair the property.
📄 Proof of income including: Social Security benefits, unemployment, pay stubs and/or income tax returns.
🧑🧑🧒🧒 Provide your household composition.
🏠 Provide proof if you are a participant in programs of the Departamento de la Vivienda.
📎 Present proof, if you participate in the TANF programs (Temporary Assistance for Needy Families), PAN (Programa de Asistencia Nutricional) or ASUME.
🏦 Remember to present a mortgage prequalification for the loan to acquire and repair the property.
How will the properties be awarded?
After prequalifying with the Oficina del Alcalde en tu Comunidad and obtaining a mortgage prequalification, on June 25 interested parties will need to submit a written economic proposal (how much they are offering for the property) and a repair proposal, using the documents that will be provided, all submitted in a sealed envelope, Platea was told by Javier Gutiérrez, president of the Junta de Subastas del Municipio de Isabela.
"Those people who qualify will enter the competition in terms of submitting their economic proposal based, first, on what the minimum cost is, as declared or appraised for that property," Gutiérrez said.
Bid evaluation. After bids are received and opened on the day of the auction, the municipality's Junta de Subastas has about 60 days to score and evaluate the bids according to established criteria, ranging from organization and development plans and being a bona fide resident of the municipality, to economic criteria (how much is offered for the property) and use of the property as a primary residence. Everything adds up to 100 points, accumulated based on compliance with each segment.
The Junta de Subastas will select the "best qualified" bidder, based on points accumulated, though need will also be considered. All bidders will be notified whether or not they were selected.
What happens after winning this affordable auction?
Those selected will have 90 days to receive mortgage approval and begin the purchase process.
Time to rehabilitate and live in the property. Those who win the auction will have one year to repair the property or show that the process has begun, and a maximum of three years to begin living in the residence.
If these terms are not met, the municipality may exercise the right of retraction on the property without compensating the titleholder (reclaiming the title and canceling the sale).
2️⃣ Open-cry auction
How does the open-cry auction of public nuisances in Isabela work?
The open-cry auction of public nuisances is open to all types of buyers, including businesses. Those interested in participating must:
Present official identification or a legal representation document in the case of businesses.
Bring a $5,000 manager's check made out to the Municipio de Isabela for each property they wish to bid on.
In this case, participation on behalf of another person is permitted with authorization or legal power of attorney.
What properties will be available?
Five properties will be auctioned on June 25 in the public auction category:
IS-125: abandoned structure at calle Amapola 29, barrio Pueblo, with a lot size of 235.69 square meters. Minimum value: $30,000
IS-99: abandoned structure at avenida Lulio E. Saavedra 130, barrio Pueblo, with a lot size of 266.65 square meters. Minimum value: $19,500
IS-54: lot at calle Marina 133, barrio Pueblo, with a lot size of 266.85 square meters. Minimum value: $17,000
IS-62: lot at calle Marina 131, barrio Pueblo, with a lot size of 500.04 square meters. Minimum value: $34,500
IS-98: abandoned structure at avenida Lulio E. Saavedra 132, barrio Pueblo, with a lot size of 406.74 square meters. Minimum value: $34,500
How it works: On the day of the auction, bidders register upon arrival at the Anfiteatro Justo Méndez Cabrera and the municipality's Junta de Subastas oversees the process.
Each property is presented with a minimum value and interested parties must raise their number to submit offers. Only offers in minimum increments of $1,000 will be accepted.
Once awarded, offers cannot be withdrawn.
If you win the auction, you must sign a purchase contract and hand over the $5,000 check. You have:
90 days to complete payment on the property from the date the contract is signed. Payment may be made by bank transfer, certified check or cash, according to the auction rules.
1 year to repair or demolish the property, which could be extended at the bidder's request, particularly in the event of a natural disaster or force majeure. The buyer then has three years to reside in the space, depending on the case.
If you fail to pay for or repair the property, the municipality may exercise the right of conventional retraction, which cancels the sale and the agreement, with the possibility that the bidder loses the deposit and faces penalties.
🏡 Our Housing coverage
How does the Centro para la Reconstrucción del Hábitat participate?
Salamanca explained that the municipality has the support of the Centro para la Reconstrucción del Hábitat (CRH). "I am a liaison between the municipality and the corporation (CRH), which is the one carrying out the investigations (of the public nuisance properties) as such. They are conducting the investigations through professional services," said the mayor's special assistant.
The CRH supports several municipalities around the Island with the identification of public nuisance properties and also offers legal services on how to take the process to court to, eventually, expropriate the properties. Its purpose is for those properties to become affordable housing or to have a useful purpose for residents.
At this time, the CRH also supports other municipalities in the creation of community land banks, another way public nuisance properties are redeveloped into affordable housing.
This content was translated with the assistance of Artificial Intelligence (AI).
