Infonavit Reform Raises Concerns Over Workers' Savings and Its Subsidiary
This Thursday, the Senate approved a reform that empowers Infonavit to build, sell, and lease homes, but concerns remain about the oversight of the subsidiary and the use of workers' savings. While the plan aims to address the housing shortage in the country, experts consulted by Expansión argue that the changes will not resolve the structural problem.
Positive Aspects: Even though the new subsidiary will operate as a commercial entity, it must adhere to principles of transparency, efficiency, economy, and authority of Infonavit. The Board of Directors will oversee the subsidiary’s performance. Its expenses will be included in what the General Assembly approves as part of the total operational expenses, which will not exceed 0.55% of the institute's total resources. Additionally, Article 41 Bis mandates that all activities of the subsidiary generate economic value and profitability, which will be audited by the National Banking and Securities Commission and the Ministry of Finance.
“It’s encouraging that housing is a priority on the government’s agenda. Promoting social housing is essential to address an urgent need in the country,” commented Juan Carlos Hartasánchez, director of corporate affairs at Tuhabi. “Infonavit has the capacity to make a real change in housing accessibility,” he added. Carlos Martínez, former general director of Infonavit, emphasized that “the most innovative part” of the reform is social rent, something that hadn’t been implemented in the sector, which could establish a system of public rents similar to that of some developed countries, where a maximum of 30% of salary is paid.
However, the main concern regarding what was approved is the oversight of the subsidiary that will be responsible for building homes. Since this company will be privately owned, a property of Infonavit, its audits cannot be conducted by the Superior Audit Office of the Federation, as it only verifies the use of public resources, while Infonavit's funds are private and belong to the workers. Fernando Soto-Hay, founder of Tu Hipoteca Fácil, suggested that audit committees could have been established from the outset, composed of representatives from the government, employers, and workers, to supervise the projects.
The operation of the construction company could entail risks, and there are concerns that legislators, beneficiaries, and Infonavit lack the necessary control. We will have to wait for the operational rules to be established to understand how the subsidiary will function, its responsibilities, and funding methods. “It is vital that any changes in Infonavit maintain a balance between the interests of workers, the government, and employers. Transparency in the management of the 2.4 trillion pesos that Infonavit oversees is crucial,” said Juan Carlos Zentella Gómez, a member of the Mexican Urban Planners Association.
The financial balance of Infonavit will include income from employer contributions, loans, property sales, and rents from the subsidiary. “All of this will be reflected in its financial statements,” emphasized a former director. Hartasánchez noted that Infonavit is efficient in providing loans to its beneficiaries. “It’s essential to find a balance between expanding access to social housing and strengthening financing, ensuring that neither area is neglected,” he added. Article 41 Bis states that construction is a secondary activity to that of loans. This is relevant because loans should be granted first, and what remains will be allocated to construction.
The Board of Directors will annually validate the investment budget for construction, ensuring that there are always sufficient resources for loans to workers, as approved in the financial plan. Soto-Hay warned about the risk that offering homes for sale and lease at below-market prices could result in losses in workers' housing subaccounts. Additionally, Martínez Velázquez mentioned that by law, Infonavit cannot provide returns below inflation, so as long as the institute continues to grant loans with a return, workers' savings would remain at least in line with inflation.
Fernando Soto-Hay also expressed concerns over the use of private resources for public purposes in the reform. Questions arise about how construction will be carried out. “Will partnerships be formed with companies? Will it be conducted through auctions or direct assignments?” he inquired. The parity model maintained by Infonavit, where the government, workers, and employers have an equal number of representatives, is questioned, as the general director will be appointed by the government and have veto rights, which could hinder board decisions. “This reform could be a way to irresponsibly seize large amounts of money. Over time, this will likely affect the profitability of millions of workers' housing subaccounts,” Soto-Hay warned.
“Homes will be built without an adequate urban vision or integration into cities. The problem won't be solved solely by the reform. A comprehensive urban policy that considers the needs of cities and interurban land use is needed,” he emphasized.
Measures such as the timely and complete payment of workers' rents, which will be deducted from their salaries, were approved, along with the obligation to care for the homes and notify Infonavit of any damage or defects. Additionally, the use of homes for purposes other than residence is prohibited.
In conclusion, Hartasánchez stated that this reform missed the opportunity to modernize and digitize Infonavit, making it more efficient. “I hope the government takes advantage of the bureaucratic simplification law to carry out this modernization,” he concluded. The reform stipulates that the institute's resources, including the National Housing Fund for Workers, will be allocated to build homes through the subsidiary, which may also rent properties to workers, provided certain criteria are met, such as providing clear and timely information about the fund's financial situation and risks.
It is determined that Infonavit’s audit will be the responsibility of the Superior Audit Office of the Federation, which will review its function as an autonomous fiscal entity, as well as the management of resources and the execution of the budget, both in operational expenses and construction. According to the Federal Labor Law, payments to cover fund loans cannot exceed 20% of salary for loans and 30% for rents.
It is important to remember that the reform to Infonavit brings both opportunities and risks. Transparency and proper oversight of the resources will be key to ensuring that investments in housing truly benefit the workers and do not just become a double-edged sword that ends up affecting their savings. The modernization and digitization of Infonavit should continue to be a priority to ensure that housing solutions address the population's needs rather than complicate the situation further.
