Housing Minister Iván Poduje announced the government will reverse the Colonia Dignidad expropriation decree due to budget constraints. The move aims to prioritize housing and reconstruction funds but has drawn opposition criticism for overlooking memory and human rights commitments. PS and Frente Amplio lawmakers call for dialogue with President José Antonio Kast.
Housing and Urbanism Minister Iván Poduje revealed in a La Tercera interview on March 29 that he will issue a decree revoking the Colonia Dignidad expropriation, a project from the previous government. "Nos están pidiendo recursos para tasarlo. Nosotros no vamos a hacer eso, porque no tenemos los recursos y, además, porque implica básicamente expropiar una localidad completa que ya tiene casas, viviendas, una zona urbana", Poduje explained. He cited a 2026 budget committed 97% by inherited debts and a 3% cut from Finance, prioritizing social housing over costly projects estimated at $47 billion for the urban part.
Colonia Dignidad, now Villa Baviera, operated as a detention, torture, and murder center during the civic-military dictatorship and afterward, with Chilean and foreign victims, according to courts. Previous governments declared it a national monument under Michelle Bachelet and scheduled its expropriation under Gabriel Boric to turn it into a memory site.
The Partido Socialista (PS) bloc rejected the decision for lacking dialogue and victim consideration, urging President Kast and the Justice Minister to respond. Frente Amplio, led by Lorena Fries and Carolina Tello, called it a human rights setback: "Se están poniendo en juego los números por sobre la justicia, la reparación, la memoria y las personas", Tello said. Former Justice Minister Jaime Gajardo termed it a "bofetada directa a la memoria".
From the government side, Deputy Gloria Naveillán (PNL) backed prioritizing Viña del Mar and Biobío reconstruction, while Ximena Ossandón (RN) suggested reviewing only the symbolic part. Poduje stressed: "Cero ideología. Es puro criterio de prioridad social".
