LOCATION SUBSIDY FOR CONSTRUCTION PROJECTS OF THE HOUSING SOLIDARITY FUND PROGRAM (SFP) OF THE MINISTRY OF HOUSING AND URBAN DEVELOPMENT – THE CASE OF SANTIAGO METROPOLITAN REGION - CHILE The International Network for Urban and Regional Statistics Standing Committee of the International Association for Official Statistics

Contents Location subsidy (SDL) Requisites and beneficiaries Territorial dimension of subsidies Analysis and comments

Objective : Characterise CNT* projects benefited by Location Subsidy during the period 2007 – 2009, according to their final location within the Santiago Metropolitan Region CNT: Construction on a new plot of land

Location subsidy (SDL) Is an addition to the normal governmental housing subsidy. It is destined to buying a plot of land as an incentive for a better location of new social housing projects. The beneficiary families would be better integrated to accessible urban services. Total subsidy = Basic subsidy + SDL SUBSIDIO A LA LOCALIZACIÓN

¿How does the subsidy work? Destined to buying a new plot of land and/or improving the condition a given plot of land. A maximum subsidy per household of US$ 8,000 to buy a plot of land; and US$ 4,000 for plot improvement. The addition of subsidising the acquisition and the improvement of a plot of land cannot be higher than US$ 8,000 How is it applied? Fiscal valuation correction factor X Fiscal valuation where: Correction factor = X (N° of housing units in a project) net plot surface. SUBSIDIO A LA LOCALIZACIÓN Superficie neta: superficie del terreno a construir de acuerdo a al definición utilizada para el calculo de la densidad neta definido en el la O.G.C.U. Avalúo fiscal del terreno: Valor del terreno que se detalla en el certificado fiscal

Beneficiaries Socially vulnerable families (Ficha de Protección Social) Application though an EGIS (Social Real State Agent), that organises demand and designs the project Requisites More than one household per home (Allegamiento) Overcrowded household (Hacinamiento) Disabilities Old age Other Social vulnerability Cities with a population over 5,000 inhabitants A maximum of 150 families per project Access to public transport within 500 m Not more than 1,000 m from education services Not more than 2,500 m distant from a primary health service REQUISITOS Y BENEFICIARIOS

77 thousand beneficiary families at a national level 28 thousand in Santiago Metropolitan Region (RMS). 13 thousand families by means of CNT projects in RMS Beneficiary families BENEFICIARIOS

50% of the benefitted families in the RMS by means of CNT 97% of CNT projects received SDL, reaching over 13,000 families in the region 75% of invested SDL resources correspond to CNT projects Beneficiary families according to the specific programme BENEFICIARIOS Fuente: elaboración propia en base a datos OH-MINVU

Territorial Dimension of the Subsidy: Zones Location Subsidy benefitted families in CNT projects, according to zone within Santiago Metropolitan Region (2007) ZONEN° families% AMGS2, A. Vespucio ring Out of the AMGS7, Total10,766100% Source: Housing Solidarity Fund Data Base, 2007 A considerable number of projects were located outside the A. Vespucio ring. The smaller projects (lower N° of families) tend to be located within the A. Vespucio ring. In smaller cities of the region most projects were located in their periphery. DIMENSION TERRITORIAL DEL SUBSIDIO

Location subsidy financial resources Number of benefitted families Out of the AMGS it is found, on average : 695 families per municipality % more than at the interior of the AMGS US$ 3,327,200 invested, 88.1% more than within the AMGS DIMENSION TERRITORIAL DEL SUBSIDIO Territorial Dimension of the Subsidy: Municipalities

Non proprietor families by RM zone, 2009 Source: Social Protection Form (FPS) Database 2009 Outside the AMGS there are 500% more non proprietor families than at the interior of the AMGS Metropolitan Region of Santiago Non proprietor families according to SFP data base Municipalities outside the AMGS 72,823 Municipalities belonging to the AMGS 436,292 ANALISIS Y COMENTARIOS

Outside the AMGS, each municipality has received 88% more location subsidy resources. Outside the AMGS, each municipality counted with 125% more beneficiary families. On average, outside the AMGS each housing project included 24% more houses per project. On average, within the AMGS, each household receives 40% more location subsidy resources. Contrary to the situation inside the AMGS, on average, outside the AMGS the urban population is less than 71% of the total (ranging from 16 to 84%) Resources and Beneficiary families according to zone of the RMS ANALISIS Y COMENTARIOS Average values according to the number of municipalities with projects Source : Housing Observatory – MINVU Data Base

SFP allocation y city type Discussion on possible indicators/further analysis: Impact on minor and intermediate cities Absorption of urban population in predominantly rural localities (less than 71% urban) Functional dependence of minor cities to Santiago Metropolitan Area The subsidy is not proportional to the size of the cities (200 UF do not represent the same benefit in all cities) Differential behaviour of the subsidy according to local land markets ANALISIS Y COMENTARIOS Source: SII Data Base 2002