Alessandra d

1
LESSONS FROM BRAZIL
scaling up slum upgrading and prevention through
national policies and program

• Alessandra dAvila 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
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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) R678 (2013) US339 R2,0
US1
4

ORGANIZATIONAL STRUCTURE 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.

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NATIONAL HOUSING POLICY 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

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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
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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)?

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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

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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
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HISTORY OF INTERVENTIONS

• Until the 70s - Eradication of slums
• Total removal of families for housing on the
  periphery of cities without public facilities and
  transportation systems
• 80s and 90s - Partial and gradual upgrading
• Implementation of basic sanitation services -
  water and sewerage
• Local initiatives - states and, especially,
  municipalities
• 2000s 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

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INTERVENTIONS CONCEPTS

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

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INTERVENTIONS 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

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INTERVENTIONS COMPONENTS
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

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PAC SLUM UPGRADING DAMS BILLINGS AND
GUARAPIRANGA SÃO PAULO/SP
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
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PAC SLUM UPGRADING

• RESULTS 2007 2010
• 558 operations contracted
• 1,2 million benefited families
• Investments, in financing and subsidies US 8.4
  billion

• PAC 2 2011 2014
• Additional US 14.1 billion
• Modalities of support
• Building works and services
• Studies and plans

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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
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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 (2009-2010) R 53.3
  billion (US 26.6 billion)
• 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)

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MY HOUSE, MY LIFE GUIDELINES

• 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.

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MY HOUSE, MY LIFE
INSTRUMENTS
RESOURCES / FUNDS

• 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.

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MY HOUSE, MY LIFE 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)

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MY HOUSE, MY LIFE
Units Contracted 2.279.706 Investments US 71.7
billions Units Delivered 1.050.393
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
RES. RONALDO TENUTA - CAMPO GRANDE/MT
RES. BANGU RIO DE JANEIRO/RJ
RES. CONCEIÇÃO VILLE - FEIRA DE SANTANA/BA
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MY HOUSE, MY LIFE MAIN CHALLENGES

• 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