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LESSONS FROM BRAZIL scaling up slum upgrading and prevention through national policies and program Alessandra d’Avila Vieira National Housing Secretary.

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Presentation on theme: "LESSONS FROM BRAZIL scaling up slum upgrading and prevention through national policies and program Alessandra d’Avila Vieira National Housing Secretary."— Presentation transcript:

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

2 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: 2

3 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 3

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.

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 PROGRAMS SLUM UPGRADING + HOUSING DELIVERY IN SCALE 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

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)‏

8 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 8

SLUM DEFINITION TYPES IRREGULAR SETTLEMENTS OF LOW INCOME DWELLERS SLUMS 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

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

The scale of the problem no longer involves the removal of all families for housing projects 11

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

URBAN INTEGRATION HOUSING LAND ADJUSTMENT ENVIRON-MENTAL SOCIAL WORK 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 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 Actions that promote: autonomy social leadership and development of the beneficiary population in order to promote sustainable development

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

15 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 PAC – 2014: Additional US$ 14.1 billion Modalities of support: Building works and services Studies and plans 15

16 PAC – MAIN CHALLENGES 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 Gravataí – RS Vila Dique – RS Alemão - RJ

17 Income distribution and social inclusion
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 ( ): R$ 53.3 billion (US$ 26.6 billion) 2nd PHASE INVESTMENTS ( ): R$ billion (US$ billion) R$ 72.6 billion in subsidies (US$ 36.3 billion) R$ 53.1 billion in financing (US$ 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.

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. 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 19 19

20 MY HOUSE, MY LIFE Adjustments in income level groups
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)

21 MY HOUSE, MY LIFE Units Contracted: 2.279.706
Investments US$ 71.7 billions Units Delivered Income groups Goals Units (contracts signed) % Goal Group 1 2,0 million 49 % Group 2 1,0 million 101,8% Group 3 0,4 million 70,8% RES. BANGU – RIO DE JANEIRO/RJ RES. RONALDO TENUTA - CAMPO GRANDE/MT RES. CONCEIÇÃO VILLE - FEIRA DE SANTANA/BA 21

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

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