Transcript Slide 1

LESSONS FROM BRAZIL
scaling up slum upgrading and prevention
through national policies and program
Alessandra d’Avila Vieira
National Housing Secretary
Ministry of Cities
May, 2013
BRAZILIAN CONTEXT
 8,5 million km²
 190,7 million inhabitants - 57 million households
 26 States and the Federal District
 5.565 municipalities:



3,914 municipalities with less than 20,000 inhabitants, where 17% of the population
lives
38 municipalities with over 500,000 inhabitants concentrate 30% of the population
Development promotion and management capacities are very uneven between them
Rapid urban growth:
81,25%
84,25%
75,59%
63,84%
67,59%
54,92%
55,94%
Urban
44,06%
45,08%
Rural
32,41%
36,16%
24,41%
18,75%
15,65%
1950
1960
1970
1980
1990
2000
2010
BRAZILIAN CONTEXT
 Housing deficit of 5,5 million households
(2008): 83,5% in urban areas and 89,6%
concentrated in families earning up to 3 minimum
wages
 Over 3 million households in slums: 85% in
metropolitan areas
 Around 11 million households with lack of
urban services and infrastructure: electric
lighting, canalized water supply, sewage
collection system or septic tank, and rubbish
collection
 Estimated annual growth of 1,5 million new
households – future demographic demand
for housing 69% concentrated in the lower
income strata (up to 3 mw)
1 minimum wage (mw) R$678 (2013) = US$339
R$2,0 = US$1
ORGANIZATIONAL STRUCTURE
MINISTRY OF CITIES

Created in 2003, the main goals are:
 Regain and assert the state's ability to formulate and manage urban
development policies;
 Develop and implement the National Urban Development Policy and sectoral
policies for housing, sanitation and mobility;
 Build a federative pact to elaborate and implement the National Urban
Development Policy.

Council of Cities, created en 2004 as an important instrument of
democratic management of the National Urban Development Policy
 Collegiate organ of deliberative and consultative nature to formulate, study and
propose guidelines for urban development and monitor its implementation;
 Composition: 86 members, with voice and vote, of various social segments that
are elected at national conferences.
NATIONAL HOUSING POLICY
STRATEGIES
 Maintain investment level in upgrading and tenure
regularization
 Guarantee investment and urban land in order to deliver new
housing units to the lower income classes
 Support municipalities to develop housing planning and
instruments and to manage local territory
 Modernize and cheapen civil construction, meeting demands
on technological infrastructure, sustainability, and professional
qualification
 Provide new housing alternatives, linked to other social and
income generation policies, for population in high social
vulnerability
NATIONAL HOUSING POLICY
SLUM UPGRADING
+
HOUSING DELIVERY IN SCALE
PROGRAMS
SLUMS AND HOUSING
INADEQUACY
 Lack of services and infrastructure
 Land tenure irregularity
 Overcrowded homes
 Lack of bathroom
 Inadequate roofing
PAC- SLUM
UPGRADING
HOUSING BACKLOG
 Improvised or rustic homes
 Involuntary family cohabitation
 Excessive expenditure with rent
MY HOUSE, MY
LIFE PROGRAM
GROWTH ACCELERATION PROGRAM
(PAC)
Investments in three infrastructure axis:
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Logistical Infrastructure (highways, railways, ports, waterways
and airports)
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Energetic Infrastructure (generation and transmission of
electrical energy, petrol, natural gas and renewable energies)

Social and Urban Infrastructure (light for all, sanitation,
housing, metros, water sources)
SLUM DEFINITION

Urban territories with varying dimensions and typologies, inhabited by
low-income families and characterized by the presence of shortages
and inadequacies

Emerged as an alternative housing made by low-income people, who
occupied territories environmentally fragile without interest to the
formal market
SLUM DEFINITION
TYPES
SLUMS
IRREGULAR SETTLEMENTS
OF LOW INCOME DWELLERS
Agglomerates of
self-built houses,
arranged in a
disorganized way,
dense and lacking in
essential public
services, occupying
land of property of
others
With self-constructed
houses and lack or
precarious basic
urban infrastructure
by lack of
maintenance or
because their
execution by the
government was
incomplete, requiring
rehabilitation and
adjustment actions.
buildings sub-divided
into rented
accommodation or
assigned; crowded
and with common use
sanitation facilities
TENEMENT HOUSES
DEGRADED HOUSING
PROJECTS
HISTORY OF INTERVENTIONS

Until the 70’s - Eradication of slums
 Total removal of families for housing on the periphery of cities without
public facilities and transportation systems
 80’s and 90’s - Partial and gradual upgrading
 Implementation of basic sanitation services - water and sewerage
 Local initiatives - states and, especially, municipalities
 2000’s – Complete and integrated upgrading
 Implementation of actions to face all the needs diagnosed in the area
 The Federal Government incorporates slum upgrading as an axis of
housing policy
INTERVENTIONS CONCEPTS

The scale of the problem no longer involves the removal of all
families for housing projects
INTERVENTIONS CONCEPTS

COMPLETE: Configuring a polygonal where will run all works and
services necessary for the elevation of the urban and housing
conditions of the settlement

INTEGRATED: Incorporation of settlements into the formal city,
with approach of urban issues, housing, land, social and
environmental
INTERVENTIONS COMPONENTS
URBAN
INTEGRATION
Implementation
of:
 basic
infrastructure
 containment and
soil stabilization eliminate risks
 construction of
public facilities
 adjustment of
the road system
and land
subdivision
HOUSING
Aiming to
decrese the
density and the
reordering of
the settlement
may occur :
 relocation (in
the same area)
or
 resettlement
(in other areas)
households
The other
houses may
receive housing
improvements
such as
bathrooms and
new roofs
LAND
ADJUSTMENT
The land adjustment
is an essential and
mandatory
component.
 It must occur
during the
execution of works
 both for the
families that will be
consolidated and
the ones that will be
resettled
ENVIRONMENTAL
Aiming to
prevent further
occupations in
areas where
families are
removed from,
they shall be
restored to a
proper
destination
considering:
 the natural
topographic
profile and
 urban and
social
characteristics of
the location
SOCIAL
WORK
Actions that
promote:
 autonomy
 social
leadership and
 development of
the beneficiary
population in
order to promote
sustainable
development
PAC – SLUM UPGRADING
DAMS BILLINGS AND GUARAPIRANGA – SÃO PAULO/SP
Sanitation, drinking water, paving, storm water drainage and house improvements
 45,000 families
benefited
 US$ 541 million
investment
 45 communities
served
 5.340 new
houses
Environmental
recovery
PAC – SLUM UPGRADING
RESULTS 2007 – 2010:
PAC 2 2011 – 2014:
 558 operations contracted
 1,2 million benefited families
 Investments, in financing and
subsidies: US$ 8.4 billion
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Additional US$ 14.1 billion
Modalities of support:
Building works and services
Studies and plans
60
45
30
15
0
Centro-Oeste
Sul
Norte
% RECURSOS ALOCADOS
Nordeste
Sudeste
% DOMICÍLIOS PRECÁRIOS
PAC – MAIN CHALLENGES
Gravataí – RS
Vila Dique – RS
Alemão - RJ
 Maintaining current levels of
investment
 Sustainability after the conclusion
of interventions
 Integrate other public policies in
the territory, such as public safety,
education, health and social care
 Structuring a technical assistance
system to stakeholders and to the
families
 Improvement of regulatory
frameworks
MY HOUSE, MY LIFE
A set of instruments for meeting the different income classes housing
needs, aimed at:
 Increasing opportunities for accessible housing
 Generating employment trough investments in the construction
industry
Income distribution and social inclusion
 GOAL: DELIVERY OF 3 MILLION HOMES
 1st PHASE INVESTMENTS (2009-2010): R$ 53.3 billion (US$ 26.6 billion)
 2nd PHASE INVESTMENTS (2011-2014): R$ 125.7 billion (US$ 62.85 billion)
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R$ 72.6 billion in subsidies (US$ 36.3 billion)
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R$ 53.1 billion in financing (US$ 26.55 billion)
MY HOUSE, MY LIFE
GUIDELINES
Broad set of instruments in order to reach all income levels:
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Tax incentives for companies and developers
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Tax reduction for materials
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Subsidy policy for families
Strategies National Housing Plan (PlanHab):
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Distribution of resources/housing units according to the states housing deficit
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Regionalization of the costs of the dwelling
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Counterpart of states and municipalities
Organized in modalities based on a combination of:
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family's income level;
organizer agent: construction company, entities, governments or individual
urban or rural areas;
size/population of the city;
with or without subsidies associated to credit.
MY HOUSE, MY LIFE
INSTRUMENTS
RESOURCES / FUNDS

Federal Budget (OGU): Main resources
of subsidies for the program, transferred
at no cost
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Employee's Severance Guarantee Fund
(FGTS): individual savings accounts
opened under employee's names, in
which employers deposit monthly, for
means of retirement, unemployment and
for financing housing. Can be reached by
any person regardless of an individual
account.
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Residential Leasing Fund (FAR): Private
accounting fund that receives resources of
OGU
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Social Development Fund (FDS):
Private fund constituted by parts of
compulsory acquisition, today sustained
by contributions of the Federal Budget and
used to operate the program.
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Special Taxation Regime: reduction of
the tax rate for real estate property
destined for social housing
Financing with FGTS:
 Complementary Subsidy – financial
contribution that varies according to
the family's income, modality of the
program and location/region;
 Balance Subsidy – pays the
administration fee of the loan/finance
and reduces the interest rate paid by
the family;
Guarantee Fund: formed with resources
of the Federal Budget to reduce credit risk,
reduce insurance and refinance parts of
the installments in case of unemployment
or loss of income source.
Reduction of Registry Costs: cheaper
and faster both for the families and for the
developer companies
MY HOUSE, MY LIFE
IMPROVEMENTS FOR 2nd PHASE
 Adjustments in income level groups
 Increase of lower income homes delivery goal - from 40%
to 60%
 Improvement of financing concession rules
 Empowerment of women head of families in contract
signing
 Improvement of technical norms and of beneficiary
selection process
 Closer partnership with local governments (for social
assistance, better housing location, delivery of social and
community facilities)
MY HOUSE, MY LIFE
Units Contracted: 2.279.706
Investments US$ 71.7 billions
Units Delivered 1.050.393
Income groups
Goals
Units (contracts signed)
% Goal
Group 1
2,0 million
978.092
49 %
Group 2
1,0 million
1.018.031
101,8%
Group 3
0,4 million
283.583
70,8%
RES. BANGU – RIO DE JANEIRO/RJ
RES. RONALDO TENUTA - CAMPO GRANDE/MT
RES. CONCEIÇÃO VILLE - FEIRA DE
SANTANA/BA
MY HOUSE, MY LIFE
MAIN CHALLENGES

Improve design and building quality, in order to minimize condominium
maintenance costs

Improve urban location: guarantee complementary urban uses and public
and community facilities

Increase participation of local governments: in project assessments and
approval, in maintenance and operation of public facilities and services and in
effectiveness of social development and livehood promotion actions
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Attract new partners to the low income real estate financing market
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Optimize participation of government tiers, social movements and
community based organizations in the housing programs
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Institutional strengthening of the Ministry of Cities in order to undertake
follow up and monitoring actions