Alessandra d’Avila VieiraNational Housing Secretary
Ministry of Cities
May, 2013
LESSONS FROM BRAZIL LESSONS FROM BRAZIL scaling up slum upgrading and prevention
through national policies and program
63,84%
54,92%
36,16%
45,08%
84,25%81,25%
75,59%
67,59%
55,94%
15,65%18,75%
24,41%
32,41%
44,06%
1950 1960 1970 1980 1990 2000 2010
Urban
Rural
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
BRAZILIAN CONTEXTBRAZILIAN CONTEXT
Rapid urban growth:
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
BRAZILIAN CONTEXTBRAZILIAN CONTEXT
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.
ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTUREMINISTRY OF CITIESMINISTRY OF CITIES
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 NATIONAL HOUSING POLICY
STRATEGIESSTRATEGIES
SLUM UPGRADING SLUM UPGRADING ++
HOUSING DELIVERY IN SCALEHOUSING DELIVERY IN SCALE
HOUSING BACKLOG Improvised or rustic homes Involuntary family cohabitation Excessive expenditure with rent
MY HOUSE, MY LIFE PROGRAM
SLUMS AND HOUSING INADEQUACY Lack of services and infrastructure Land tenure irregularity Overcrowded homes Lack of bathroom Inadequate roofing
PAC- SLUM UPGRADING
NATIONAL HOUSING POLICY NATIONAL HOUSING POLICY
PROGRAMSPROGRAMS
GROWTH ACCELERATION PROGRAM GROWTH ACCELERATION PROGRAM (PAC)(PAC)
Investments in three infrastructure axis:
Logistical Infrastructure (highways, railways, ports, waterways and airports)
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)
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 DEFINITIONSLUM DEFINITION
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
SLUM DEFINITIONSLUM DEFINITIONTYPESTYPES
SLUMSSLUMSSLUMSSLUMSIRREGULAR SETTLEMENTS IRREGULAR SETTLEMENTS
OF LOW INCOME DWELLERSOF LOW INCOME DWELLERSIRREGULAR SETTLEMENTS IRREGULAR SETTLEMENTS
OF LOW INCOME DWELLERSOF LOW INCOME DWELLERS
buildings sub-divided into rented
accommodation or assigned; crowded
and with common use sanitation facilities
by lack of maintenance or because their execution by the government was incomplete, requiring rehabilitation and adjustment actions.
TENEMENT HOUSESTENEMENT HOUSESTENEMENT HOUSESTENEMENT HOUSES DEGRADED HOUSING DEGRADED HOUSING PROJECTSPROJECTS
DEGRADED HOUSING DEGRADED HOUSING PROJECTSPROJECTS
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
HISTORY OF INTERVENTIONSHISTORY OF INTERVENTIONS
The scale of the problem no longer involves the removal of all families for housing projects
INTERVENTIONS CONCEPTSINTERVENTIONS 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 CONCEPTSINTERVENTIONS CONCEPTS
INTERVENTIONS COMPONENTSINTERVENTIONS COMPONENTS
Implementation of:
basic infrastructure
containment and soil stabilization - eliminate risks
construction of public facilities
adjustment of the road system and land subdivision
Implementation of:
basic infrastructure
containment and soil stabilization - eliminate risks
construction of public facilities
adjustment of the road system and land subdivision
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
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
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
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
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
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
Actions that promote:
autonomy
social leadership and
development of the beneficiary population in order to promote sustainable development
Actions that promote:
autonomy
social leadership and
development of the beneficiary population in order to promote sustainable development
URBAN INTEGRATION
URBAN INTEGRATION
HOUSINGHOUSING LAND ADJUSTMENT
LAND ADJUSTMENT
ENVIRON-MENTAL
ENVIRON-MENTAL
SOCIALWORK
SOCIALWORK
45,000 families benefited
US$ 541 million investment
45 communities served
5.340 new houses
45,000 families benefited
US$ 541 million investment
45 communities served
5.340 new houses
Environmental recovery
Sanitation, drinking water, paving, storm water drainage and house improvements
PAC – SLUM UPGRADINGPAC – SLUM UPGRADINGDAMS BILLINGS AND GUARAPIRANGA – SÃO PAULO/SPDAMS BILLINGS AND GUARAPIRANGA – SÃO PAULO/SP
0
15
30
45
60
Centro-Oeste Sul Norte Nordeste Sudeste
% RECURSOS ALOCADOS % DOMICÍLIOS PRECÁRIOS
RESULTS 2007 – 2010: 558 operations contracted 1,2 million benefited families Investments, in financing and
subsidies: US$ 8.4 billion
PAC – SLUM UPGRADINGPAC – SLUM UPGRADING
PAC 2 2011 – 2014: Additional US$ 14.1 billion Modalities of support: Building works and services Studies and plans
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
PAC – MAIN CHALLENGESPAC – MAIN CHALLENGES
Alemão - RJ
Vila Dique – RS
Gravataí – RS
MY HOUSE, MY LIFE 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 inclusionIncome distribution and social inclusion
GOALGOAL: DELIVERY OF 3 MILLION HOMES
1st PHASE INVESTMENTS (2009-2010)1st PHASE INVESTMENTS (2009-2010): R$ 53.3 billion (US$ 26.6 billion)
2nd PHASE INVESTMENTS (2011-2014)2nd PHASE INVESTMENTS (2011-2014): R$ 125.7 billion (US$ 62.85 billion)
R$ 72.6 billion in subsidies (US$ 36.3 billion)
R$ 53.1 billion in financing (US$ 26.55 billion)
Broad set of instruments in order to reach all income levels: Tax incentives for companies and developers Tax reduction for materials Subsidy policy for families
Strategies National Housing Plan (PlanHab): Distribution of resources/housing units according to the states housing deficit Regionalization of the costs of the dwelling Counterpart of states and municipalities
Organized in modalities based on a combination of: 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 LIFEMY HOUSE, MY LIFEGUIDELINESGUIDELINES
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
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
Federal Budget (OGU): Main resources of subsidies for the program, transferred at no cost
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.
Residential Leasing Fund (FAR): Private accounting fund that receives resources of OGU
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.
Federal Budget (OGU): Main resources of subsidies for the program, transferred at no cost
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.
Residential Leasing Fund (FAR): Private accounting fund that receives resources of OGU
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.
MY HOUSE, MY LIFEMY HOUSE, MY LIFE
RESOURCES / FUNDSRESOURCES / FUNDS RESOURCES / FUNDSRESOURCES / FUNDS INSTRUMENTSINSTRUMENTSINSTRUMENTSINSTRUMENTS
MY HOUSE, MY LIFEMY HOUSE, MY LIFEIMPROVEMENTS FOR IMPROVEMENTS FOR 22ndnd PHASE 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 MY HOUSE, MY LIFE
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%
Units Contracted: 2.279.706
Investments US$ 71.7 billions
Units Delivered 1.050.393
Units Contracted: 2.279.706
Investments US$ 71.7 billions
Units Delivered 1.050.393
RES. BANGU – RIO DE JANEIRO/RJ RES. RONALDO TENUTA - CAMPO GRANDE/MT RES. CONCEIÇÃO VILLE - FEIRA DE SANTANA/BA
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
Attract new partners to the low income real estate financing market
Optimize participation of government tiers, social movements and community based organizations in the housing programs
Institutional strengthening of the Ministry of Cities in order to undertake follow up and monitoring actions
MY HOUSE, MY LIFEMY HOUSE, MY LIFEMAIN CHALLENGESMAIN CHALLENGES