Housing+ | MIT | April 2018

FACING LARGE SCALE IN SÃO PAULOFernando de Mello Franco with the colaboration of Marcela Ferreira

Bob Wolfenson

PMSP

PMSP

How to scale up

Bob Wolfenson

Fabio Knoll, 2010

# 1formulating housing policies

MUNICIPAL HOUSING PLANDiagnostics; Programs and strategies for social housing

SPECIAL ZONES OF SOCIAL INTEREST (ZEIS)Areas designated to the provision of affordable housing, particularly for families whose income is lower than 3 minimum wages. The Master Plan has doubled ZEIS areas

LAND REGULARIZATIONExpanding tools and instruments for land regularization of informal settlements

SOURCES OF FUNDING30% FUNDURB (min.)

PURCHASING WELL-LOCATED LAND TO IMPLEMENT SOCIAL HOUSING + SUBSIDIZING HOUSING PROGRAMS

25% OUC or AIU (min.) PURCHASING LAND TO IMPLEMENT SOCIAL HOUSING WITHIN THE INTERVENTION AREA

SOLIDARITY SHAREEvery development larger than 20.000 m² must donate 10% of its built area to social housing or the equivalent for purchasing land

SMDU/PMSP, 2014

HOUSING POLICY TOOLS

# 2providing land access

SÃO PAULO CITY

12M inhabitants

2,2M property owners

Source: Estadão Dados

SÃO PAULO CITY

12M inhabitants

1% of property ownersown 45% property share

Source: Estadão Dados

SPECIAL ZONES OF SOCIAL INTEREST

ZEISPortions of the territory dedicated, predominantly, to provide decent housing for low income population through the provision of new Social Interest Housing (HIS) and Social Market Housing (HMP), as well as urban improvements, environmental recovery and land regularization.

40% HIS (0 to 6 minimum wages)40% HMP (6 to 10 minimum wages)20% other uses

minimum wage = US$3,270 per year

ZEIS 1143 km2

ZEIS 2,3,4,529 km2

SPECIAL ZONES OF SOCIAL INTEREST

(regularization) (production)

624,000housing deficit

SÃO PAULO METROPOLIS

21M inhabitants

Source: Fundação João Pinheiro, 2015

527,000 vacant dwellings

624,000housing deficit

SÃO PAULO METROPOLIS

21M inhabitants

Source: Fundação João Pinheiro, 2015

SOCIAL FUNCTION OF PROPERTY

Compulsory Parcelling, Use and Construction (PEUC)

PROVIDE USE

OWNERS SHOULD

IN 1 YEAR

SUBDIVIDE OR BUILD

SUBDIVIDE OR BUILDPRESENT

A PROJECT

BEGIN CONSTRUCTION

FINISH CONSTRUCTION

IN 1 YEAR IN 2 YEARS IN 5 YEARS

OWNERS SHOULD

SMDU/PMSP, 2014

UNBUILT LOTS UNDERUTILIZED PROPERTIES

UNUTILIZED PROPERTIES

PAYMENT:Tax + 2%*

PAYMENT:Tax + 4%*

PAYMENT:Tax + 15%

PAYMENT:Tax + 15%

MAX. LIMIT: 15%

If owners don’t comply with deadlines, the City will be able to charge a Progressive Urban Property Tax over time

* E.G.

PAYMENT:Tax + 8%*

SOCIAL FUNCTION OF PROPERTY

Progressive Urban Property Tax Over Time

SMDU/PMSP, 2014

1st YEAR

2ndYEAR

3rdYEAR

4thYEAR

5thYEAR

x2 x2 x2

1260 notified properties = 2,57 million of land

TOTAL LAND AND BUILT AREA OF NOTIFIED PROPERTIES

SMDU/PMSP, 2016

SOCIAL FUNCTION OF PROPERTY

Compulsory Parcelling, Use and Construction (PEUC)

483,999

2,571,575

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Built Area Land Area

# 3financing

municipal financing mechanism

ONEROUS GRANT OF BUILDING RIGHTS

(OODC)

CERTIFICATE FOR ADDITIONAL BUILDING

POTENTIAL(CEPAC)

MUNICIPAL SOURCES OF FUNDING

Land Value Capture Tools

US$51 M / yearaverage 2004-2015

US$110M / yearaverage 2004-2015

from additional building rights throughout the city

from additional building rights in Urban Operation Consortiums

Note: 1 USD = 3.4 BRLSource: Statement of changes in equity 2004-2013, Revenue Bulletin 2005-2013 (Budget Execution) – SF; SP-Urbanismo/PMSP

federal financing mechanism

FROM 2015 TO 20175 MILLION HOUSING UNITS

Source: MCidades

HOW MUCH DOES THE LACK OF URBANITY COST?

state financing mechanism

CASA PAULISTA HOUSING PPP3 683 housing units in phase 1

USD 412M investment public-private partnership20 years of maintenance

HOW TO MEASURE DESIGN COST AND BENEFITS?

Biselli & Katchborian

# 4implementing a social rent program

BRAZIL

207M inhabitants

17,6% live in rented properties8,7% live in borrowed properties

Source: PNAD IBGE

Rent easily and safely, without guarantor, without income proof, with payment warranty

# 5renovating existing dwellings

1/3 OF THE POPULATION

Fabio Knoll

Fabio Knoll

LIVES IN SUBNORMAL CONDITIONS