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Alessandra d’Avila Vieira National Housing Secretary Ministry of Cities May, 2013 LESSONS FROM BRAZIL scaling up slum upgrading and prevention through.

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Presentation on theme: "Alessandra d’Avila Vieira National Housing Secretary Ministry of Cities May, 2013 LESSONS FROM BRAZIL scaling up slum upgrading and prevention through."— Presentation transcript:

1 Alessandra d’Avila Vieira National Housing Secretary Ministry of Cities May, 2013 LESSONS FROM BRAZIL scaling up slum upgrading and prevention through national policies and program

2  8,5 million km²  190,7 million inhabitants - 57 million households  26 States and the Federal District  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 CONTEXT Rapid urban growth:

3  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 CONTEXT

4   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 STRUCTURE MINISTRY OF CITIES

5  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 STRATEGIES

6 SLUM UPGRADING + HOUSING 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 PROGRAMS

7 GROWTH ACCELERATION PROGRAM (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)‏

8  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

9 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 DEFINITION TYPES SLUMS IRREGULAR SETTLEMENTS OF 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 HOUSES DEGRADED HOUSING PROJECTS

10  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 INTERVENTIONS

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

12  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 CONCEPTS

13 INTERVENTIONS COMPONENTS 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 URBAN INTEGRATION HOUSINGLAND ADJUSTMENT ENVIRON- MENTAL SOCIAL WORK

14  45,000 families benefited  US$ 541 million investment  45 communities served  new houses Environmental recovery Sanitation, drinking water, paving, storm water drainage and house improvements PAC – SLUM UPGRADING DAMS BILLINGS AND GUARAPIRANGA – SÃO PAULO/SP

15 RESULTS 2007 – 2010:  558 operations contracted  1,2 million benefited families  Investments, in financing and subsidies: US$ 8.4 billion PAC – SLUM UPGRADING PAC – 2014:  Additional US$ 14.1 billion  Modalities of support:  Building works and services  Studies and plans

16  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 CHALLENGES Alemão - RJ Vila Dique – RS Gravataí – RS

17 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  GOAL: DELIVERY OF 3 MILLION HOMES  1st PHASE INVESTMENTS ( )  1st PHASE INVESTMENTS ( ): R$ 53.3 billion (US$ 26.6 billion)  2nd PHASE INVESTMENTS ( )  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)

18 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 LIFE GUIDELINES

19  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 LIFE RESOURCES / FUNDS INSTRUMENTSINSTRUMENTS

20 MY HOUSE, MY LIFE IMPROVEMENTS FOR 2 nd 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 Income groupsGoalsUnits (contracts signed)% Goal Group 12,0 million % Group 21,0 million ,8% Group 30,4 million ,8% Units Contracted: Investments US$ 71.7 billions Units Delivered RES. BANGU – RIO DE JANEIRO/RJ RES. RONALDO TENUTA - CAMPO GRANDE/MT RES. CONCEIÇÃO VILLE - FEIRA DE SANTANA/BA

22  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 LIFE MAIN CHALLENGES


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