Amendment to the National Workers' Housing Fund Institute in Mexico

An amendment focused on the National Workers' Housing Fund Institute (Instituto del Fondo Nacional para la Vivienda de los Trabajadores or INFONAVIT) in Mexico was published on Feb. 21, 2025, in Mexico's Official Gazette of the Federation, addressing housing with a social orientation.

This amendment has the following key objectives:

• the construction of housing by INFONAVIT or its subsidiary company, either for purchase by workers or for social rental purposes
• the promotion of housing offers intended for social rental with a purchase option

Likewise, the reform has set forth the following benefits for workers:

• The positive balance in workers' housing subaccounts may be used as a guarantee for loans, which will only cover missed payments if the worker loses their employment relationship (applicable for loans granted by INFONAVIT and financial institutions).
• Updating balances, amortization payments or additional charges on loans granted to workers are prohibited.
• Workers may designate, at the time the loan is granted or at a later date, the individuals who, in the event of their death, may inherit the property under the loan as beneficiaries.
• Workers under the social rental scheme may exercise their right to purchase at any time, with previously paid rent possibly being credited toward the final purchase price.
• Salary deductions to cover payments or rent arising from social rental, acquisition, construction, repair, extension or improvement of housing, or the payment of acquired liabilities, may not exceed 20 percent of the salary for loans and 30 percent for rent payments.
• The obligation to make contributions will be suspended when no wages are paid due to absences under the terms of the Social Security Law, provided that timely notice is given to the INFONAVIT, in accordance with Article 31.
• In cases of medical leave issued by the Mexican Social Security Institute, the obligation to make INFONAVIT contributions will remain in force.
• When it comes to deductions for INFONAVIT loans obtained by workers, the obligation to withhold will not be suspended due to absences or medical leave under the terms of the Social Security Law.

Implementation Deadlines

The reform, adding and repealing various provisions of the law of the National Workers' Housing Fund Institute and the Federal Labor Law regarding socially oriented housing, came into effect on Feb. 22, 2025.

Finally, the transitory articles set forth that, within 180 days upon the entry into force of this decree, policies and rules must be issued to regulate the granting of social rental housing under Article 51 of the Law of the National Workers' Housing Fund Institute. Additionally, INFONAVIT's governing bodies must issue the necessary regulations and make the corresponding amendments to its internal legal framework to ensure compliance with the decree within 360 calendar days from the date it takes effect.

Conclusion

In summary, the purpose of the amendment is to enable workers to use the loans granted by INFONAVIT to rent housing, with the option to purchase, allowing paid rent to be credited toward the final purchase price. Additionally, the reform imposes on employers the obligation to continue paying workers' loans in cases of medical leave or absences, in accordance with the Social Security Law.

Holland & Knight's labor and employment attorneys are available to support companies in understanding and implementing these new INFONAVIT provisions. For further information, please do not hesitate to contact the authors.

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