Selling tiny bits of Catemaco is BIG business.
Aside from the dozens of established colonias (neighborhoods) in Catemaco, there are also dozens of newer colonias in the hills of Catemaco that are sparsely populated, generally lack city water, electricity and paved roads. Almost monthly newer colonias are being promoted, and sold, without any municipal services.
Veracruz has a substantial, reasonable set of laws on the books that are supposed to control subdivisions (colonias). These laws require water, drainage, sewage and adequate roads.
All these laws in Catemaco and elsewhere in Mexico are circumvented by receiving permission from a municipal mayor to subdivide a terrain. Usually this involves a strawman purchase of up to 10 % of the lots involved in the subdiivision in favor of the mayor.
A current political aspirant of Catemaco announced a new colonia to house 156 families, offering the lots at 4500 pesos with a 2000 pesos downpayment, designed for extremely low income habitants in a federally protected reserve. Naturally none of the lots have any municipal facilities.
On a daily basis, inhabitants of the previously established colonias with a few built homes, demand that the municipal government provide them with water, electricity and drainage. And, as political expediency permits, rudimentary facilities are extended to these areas, primarily in order for the current mayor to garner good will and steal at least 10% of the cost of the projects.
The built out costs of these older and new colonias is enormous and an extraordinary hardship on municipal finances, primarily because of extraordinarily low property taxes in Catemaco and most of Mexico.
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