SITES + SERVICES A HYBRID MODEL FOR RIO DE JANEIRO
COLUMBIA UNIVERSITY GRADUATE SCHOOL OF ARCHITECTURE, PRESERVATION, AND PLANNING SPRING 2014 MSRED/MARCH STUDIO | VISHAAN CHAKRABARTI + HILARY SAMPLE + SHAWN AMSLER
TEAM
Architecture Urban Planning + Anthropology
Historic Preservation Daniel
Say
Julia
Chris
Real Estate Development
Derek
Catherine
Geography
Law
Sofia
Economics
EXECUTIVE SUMMARY
TASK: Study the Rio das Pedras favela in order to understand the model for informal development and thereafter propose how real estate developers can improve the quality of life, maintain affordable housing, and foster informal growth with an integration of favela-like development within a more formal context using the Ambev site as a case study.
SOLUTION: Formulation of a Master Plan for the site, utilizing a Sites and Services approach with a Community Land Trust ownership model.
Rio das Pedras 2014
MACROECONOMIC & POLITICAL OUTLOOK
HIGHLIGHTS: • March ‘14: S&P downgraded Brazil’s credit rating to BBB- from BBB+. Fitch reaffirmed investment grade. • Inflationary pressures remain as a concern. • Government tries to reduce public debt (69%). • Lower economic growth is creating political concerns. • High tax burden & poor social services caused protests. • 2014 Presidential and Legislative elections. • World Cup 2014 and Olympics 2016 preparation.
MACROECONOMIC OUTLOOK % GDP Interest Rate (Selic) Inflation Unemployment Rate
2011 2.7 10.5 6.5 6.0
2012 1.0 7.25 5.8 5.5
2013 2.3 10.0 5.9 5.4
2014 1.6 11.3 6.5 5.7
2015 2.0 12.0 6.0 6.0
Salvador 2014: World Cup Stadium Aerial
RIO DE JANEIRO
SUMMARY • Total population 2010: 18,171,711 • Rio de Janeiro: 6,323,037 • Metro area: 11,848,674 • Total Area: 4,781 km2 • 2nd largest contributor to GDP • 22% of the total population lives in favelas. • 1,071 Favelas according to the 2010 census • Affordable Housing Crisis
FAVELAS IN RIO DE JANEIRO
Favelas and High Rise Housing in Rio de Janeiro
FAVELA CHARACTERISTICS
FAVELAS TODAY • Neighborhoods that emerge from a need for housing • Established and developed without external or government regulation • Their original blueprint established and developed organically and by residents themselves • Continuously evolving based on culture, access to resources and jobs • Run by Residents Associations • No legal protection to the ‘property owners’/no access to secure land tenure • Limited upward mobility in the formal sector • Health/Safety/Welfare – no enforcement of building codes, drugs/gangs/ violence is a continuing issue, and militias have a strong-hold on the residents’ welfare • Gentrification leads to rising rents and displacement; UPPs have increased safety in many favelas, further amplifying price increases
Rio das Pedras 2014
FAVELAS IN BRAZIL
HISTORICAL APPROACHES • 1937: Federal District Building Code: favelas are declared illegal and announced demolition • 1950s-80s: State and Church sponsor favelas improvements • 1982-1990: • Brizola Administration several infrastructure upgrades are undertaken (water & sewage hookups, trash collection, public lighting) • Cada Familia, Um Lote: land regularization-14,000 lots • Mid 90s: IDB creates urban upgrade program “Favela Barrio.” Infrastructure investments worth US 600mn • Programa Morar Legal: regularization of 24,000 households • Today: 3rd phase of IBD’s program “Morar Carioc”, which aims to upgrade all favelas in Rio by 2020 • Initial round only covers 30 favelas in Rio and 6 irregular settlements through a 150 million loan
Rio das Pedras 2014
DEMOGRAPHIC TRENDS HIGHLIGHTS • Urbanization Rate • Growth of domestic consumer class & rise of credit usage • Vehicle registration up 21% • Growth of middle class
Rio das Pedras 2014
SOCIAL MOBILITY: RISE OF THE MIDDLE CLASS
MONTHLY INCOME PER CAPITA
(A) 3.5% (B) 3.6% (A) 3.5% (C) 41.1% (B) 3.6%
(A) 5.3% (C) 6.4% 55.3% (B)
(D) 21.6% (C) 41.1%
(C) 55.3% (D) 16.6%
(E)21.6% 30.2% (D)
AGE DISTRIBUTION
(E) 16.4% (D) 16.6%
(E) 30.2%
100
100
95-99
95-99
Age
70-74 100 65-69 95-99 60-64 90-94 55-59 85-89 50-54 80-84 45-49 75-79 40-44 70-74 35-39 65-69 30-34 60-64 25-29 55-59 20-24 50-54 15-19 45-49 10-14 40-44 5-9 35-39 0-4 30-34 5.0 25-29
85-89 75-79
Female
Male
4.0
3.0
2.0
20-24
1.0
0.0
Percentage of Population
1.0
2.0
3.0
4.0
5.0
70-74 100 65-69 95-99 60-64 90-94 55-59 85-89 50-54 80-84 45-49 75-79 40-44 70-74 35-39 65-69 30-34 60-64 25-29 55-59 20-24 50-54 15-19 45-49 10-14 40-44 5-9 35-39 0-4 30-34 5.0 25-29 15-19
10-14
10-14
5-9
5-9
0-4
0-4 5.0
4.0
3.0
2.0
1.0
0.0
Percentage of Population
1.0
2.0
3.0
4.0
5.0
5.0
6 10
6 3.0
2.0
1.0
0.0
Percentage of Population
1.0
2.0
693 383
8 12
8
4.0
237 308 394 237 408 308 524 394 528 408 635 524 693 528 383 635
10 14
Female
Male
20-24
15-19
12
Male FAVELAS IN RIO DE JANEIROFemale
80-84
Age
Age
75-79
Female Male (EXCLUDING FAVELAS) RIO DE JANEIRO
Age
80-84
Urca 14 HOUSEHOLD DISTRIBUTION Average for Favelas
(E) 16.4%
90-94
90-94 85-89
Do Rocha Santa Cruz DaRocha Mare Do Rocihna Santa Cruz Barra Tijuca Da Mare Barrier Vasco Rocihna Humaita Botanical Gardens Barra Tijuca Urca Vasco Barrier AverageBotanical for Favelas Humaita Gardens
(A) 5.3% (B) 6.4%
3.0
4.0
5.0
4
4 2 0
9
-14 15-1
10
9 9 9 9 9 9 -44 45-4 0-54 55-5 -24 25-2 0-34 35-3 -64 65-6 0-74 75-7 3 7 40 5 60
20
+
80
2
4.0
3.0
2.0
1.0
0.0
Percentage of Population
1.0
2.0
3.0
4.0
5.0
0
9
-14 15-1
10
9 9 9 9 9 9 -44 45-4 0-54 55-5 -24 25-2 0-34 35-3 -64 65-6 0-74 75-7 3 7 40 5 60
20
+
80
SITE
AMBEV SITE
RIO DAS PEDRAS SITE
RIO DAS PEDRAS 70.9 Hectares 81,000 Residents est. 3 Public schools 7 K-4 Private schools 2 Day facilities
AMBEV
1 Resident’s Association office 1 Public plaza 1 Health center 1 Community health station 1 Mobile library 6 Soccer fields 1 Public safety trailer Rio das Pedras 2014
RIO DAS PEDRAS
Rio das Pedras 2014
RIO DAS PEDRAS LESSONS LEARNED • What’s Working • • • • • • • •
Affordability Mixed-use High density to support community, commercial and transit Pedestrian-oriented High use of bicycles and public transportation Organic, incremental architecture Strong community networks and exchange between residents Entrepreneurial
• Areas of Opportunity/Improvement • • • • • •
Additional open space & recreation Community facilities Safer construction methods Public health Education Sanitation
Rio das Pedras 2014
Rio das Pedras 2014
AMBEV 28.5 Hectares of vacant land Factory partially still in operation
AMBEV
AMBEV Site
RIO DAS PEDRAS AMBEV Site
MINHA CASA MINHA VIDA: PLANNED FOR AMBEV
• Primary affordable housing program at a federal level. • Government has promised to deliver millions of units within the current presidency. • Residents given voucher to purchase housing. • Shortcomings: • • • • • • •
Mono-Use Residential Low Density Housing Restrictive in design Public gathering spaces are poorly designed, if not lacking completely. Developments are often located far from sources of employment Lack adequate public transport access Quality vs. Quantity - Government less concerned with construction quality. • New developments located in isolated areas. • All these factors often lead to failed developments, where new communities are afflicted by high vacancy, credit loss or crime. The Minha Casa Minha Vida Program fails to recognize and replicate the positive conditions of informal settlements, proposing overly-formalized housing communities. This model of development often leads to housing stock which depreciates, rather than appreciates over time.
Minha Casa Minha Vida Project
WHAT IS SITES AND SERVICES?
INCREMENTAL GROWTH STRATEGY • Government provides and prepares land with essential infrastructure needed for habitation • Prepared plots sold or leased to beneficiaries • Beneficiaries use their own resources to construct their homes • Basic Infrastructure - Supplied by Government • • • • •
Water Supply Electrical Service Sewage System Storm Drainage Street Lighting
• Access to infrastructure - Supplied by Government • Each plot set up to connect to water, power, sewer • Planned Community Services & Facilities - Supplied by Government • • • • • •
Schools Health Centers Community Centers Playgrounds/Recreation/Open Space Security post Bus shelters
Infrastructure
PROPOSAL
Builds Frame
Individuals
Option to Buy Frame
Land
Community Land Trust
Phased Payments $/ Yr
$$/Year
Infrastructure
Voucher available for affordability
Government
COMMUNITY LAND TRUST
Join CLT
Government Provides Services
Builds Infrastructure
Residents
Community Land Trust
Pays installments to offset infrastructure costs
Gives land to CLT
Governing Board Water
Roads Education
Sewage
AMBEV SITE Build Housing Frames
Electricity
Maintenance
Define Guidelines
Health
$
Waste
Security
Collaborates with SESC to provide adtl. services
Hold Title to Land
Library
Recreation
Community Center
SESC
Stabilize Values
SESC (SOCIAL SERVICE OF COMMERCE)
COMMUNITY RECREATION • Founded in 1946 • Created to give employees access to health services and provide sporting and cultural activities • SESC has units in all 27 States of Brazil. • 22 SESC units in Rio de Janeiro
“What we want is precisely to maintain and amplify what we’ve found here, nothing more” -Lina Bo Bardi
• Funding is private—which is great because it is not reliant on the government—and will not change with a change in leadership • The funding comes from a 1.5% tax on companies with commercial activities. • Some activities are free, some require membership • In 2012 annual budget was $600M. The amount of funding available grows every year as the commercial sector of business grows in Brazil.
SESC Pompeia, Sao Paulo, Brazil
AMBEV COMMUNITY LAND TRUST PARAMETERS
• Entity: Non Profit • Open, Place-Based Membership • Ownership Model: Dual Ownership and Leased Land • Flexible Land Use • Option to Purchase above Already Owned Units • Perpetual Affordability: CLT Right of First Refusal • Perpetual Responsibility • Community Control – CLT Board of Directors • Tripartite Governance – • (1) Leaseholder Representatives • (2) General Representatives • (3) Public Representatives • Flexible Community Development
CLT United States
GRID COMPARISON
SIZE
hectare
POPULATION
DENSITY
per hectare
PARIS
MANHATTAN
8,677
5,879
2,211,000
RIO DAS PEDRAS
AMBEV PROPOSAL
60,347
71
25.5
1,619,000
17,307,000
81,000
35,545
255*
275*
287*
1,141
1,394
30 x 65
80 × 274
75 X 175
20 × 70
60 × 24
1,950
21,920
13,125
1,400
1,440
MUMBAI
BLOCK
meters
BLOCK AREA
square meters
Land Use MASTER PLAN PROPOSAL AMBEV Site = 32.5 ha
LAND USE
CONDOMÍNIO CAPIM MELADO
M
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CONDOMÍNIO NOVOS RUMOS
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212C01
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225C01 225C02
200C01
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210C0 210C0 1 2
235C01 235C02
245C01
220C0 220C02 1
245C02
230C01 230C0 2
255C01 255C02
105C02
115C01
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125C01
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240C01 240C0 2
95C01
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35C01 35C02
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285C01 285C02
295C01
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5688
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340C02
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Circulation 25%
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5560
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LT 32 QD D
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C 146C10 146C08
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M
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TRIA INDÚS
M
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Open Space 15%
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Residential & Commercial 53%
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M
37.8 ha
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LT 16 Q F
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CONDOMÍNIO BOSQUE DOS ESQUILOS
M
C
C M
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72
M R
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R M
140
R
152
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132
2
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135
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182
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208
Health Facilities Schools 1% 6%
2
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2
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1
AMBEV Site= 32.5 ha
M
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BOSQUE DOS
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POSTO GAS.
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• 2 Primary Schools for 800 students each (50,000 sf / 4,645 sqm) 087
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• Playgrounds/Recreation/Open Space (4.8 hectares)
77.55 ha
Man
ESCOL JARDIM STA ENCAN FLORE
• 1 Community Center (Converted factory/SESC)
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• 1 Health Center for 50,000 to 80,000 people (40,000 sf / 3,716 sqm) Man
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• 2 Pre-schools (2,000 sf / 186 sqm)
CONDOMÍNIO FLORESTA AM
253
M
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PED
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E DIQU
• 2 Kindergartens (3,000 sf / 270 sqm)
Man
P
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COUNTRY CLUB FLORESTA
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(BTE)
MORRO DA PANELA
M
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(BTE)
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MORRO DA PANELA
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MORRO DO PINHEIRO Man
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PROGRAM
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ESQUILOS
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HV-3727
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CONDOMíNIO VILAGE DA FLORESTA
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• 1 Security post Incorporated into Community Facility
MOV. DE TERRA
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PAL 32767
Ls 14 a 20 PAL 32767 Destinada a Escola
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CONDOMÍNIO DA DELFIM Man
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PAL 30729
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• Day-care Facilities (Incorporated into Commercial)
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MASTER PLAN INFRASTRUCTURE & GRID Secondary Roads 1 lane 6m wide
Primary Commercial Coorridor 4 Lanes 22m wide
Roads
Water
Sewage
Electricity
Stormwater Mgmt
Streetlamps
632 Sq M/per block $28,500 USD/per block 220 M/per block $105,000 USD/per block
36 Lots per 24 m x 64 m block
220 M/per block $160,000 USD/per block 128 M/per block $43,200 USD/per block 72 M/per block $7,200
4 lights/per block $2,100
Lot: 4m x 12m Building Footprint: 4m x 8m
Housing Unit Framework: Basic Frame with utility wall for each plot with connect to water, power, sewer (1 per unit/$3,600 per unit)
CASE STUDY: ELEMENTAL
STRATEGY Limited resources for affordable housing are invested to build half of a good house, rather than a full house with poor construction. The savings in construction are reinvested towards a site which is more strategically located with a higher-land value. A better Location should permit the property to appreciate in time, rather than depreciate. INCREMENTAL GROWTH The user will respond to this ‘half-house’ by wanting to expand it over time. The design accommodates for this incremental growth with an adjacent void, mitigating the risk of structural failure and over-crowdedness.
Elemental Project
SELF CUSTOMIZED The units are built with cheap prefabricated concrete panels and assembled on site and left virtually ‘raw’, with limited finishes. Users then self-improve their homes, selecting the tiling or exterior paint color to their liking.
Elemental Project
BUILDING TYPOLOGY 1 Unit 1 Unit 4m x 8m (13 ft x 26 ft) 4m x 8m (13 ft x 26 ft) 32 sqm (344 sqft) 32 sqm (344 sqft) $3,424 USD R$7,670 $3,424 USD R$7,670
Utilities Utilities
Unit A Unit A
1 Unit Expansion 1 Unit Expansion 8m x 8m (26 ft x 26 ft) 8m x 8m (26 ft x 26 ft) 64 sqm (688 sqft) 64 sqm (688 sqft) $6,848 USD R$15,340 $6,848 USD R$15,340
2 Units shown with shared expansion 2 Units shown with shared expansion 8m x 4m + 4m x 4m 8m x 4m + 4m x 4m 48 sqm (516 sqft) 48 sqm (516 sqft) $5,136 USD R$11,504 $5,136 USD R$11,504
Unit B Unit B
UNITS CONNECT ON THE BLOCK Utilities
Utilities
Unit A
Unit B
Unit A
Commerical
Rear Yard
Unit B
Commerical
Rear Yard
AMBEV SITE: PHASE 1
AMBEV SITE: PHASE 2
AMBEV SITE: PHASE 3
AMBEV SITE: PHASE 4
PHASING PHASING MODEL PHASE 1 Constuction & Sell
2014
2019
2024
2029
2034
2039
2044
2049
2054
Initial Balance: $20.58 mn 455 Units/Yr
1 Permanent Bond
Refinanced Balance: $7.9 mn - Minimum Debt Payment/Month/Unit: $30.40 (R$68.1)
Bond Payoff
Initial Balance: $20.34 mn
2 Construction & Sell
581 Units/Yr
Refinanced Balance: $6.10 mn - Minimum Debt Payment/Month/Unit: $23.24 (R$52.05)
2 Permanent Bond
Bond Payoff
Initital Balance: $18.71 mn
3 Construction & Sell
553 Units/Yr
3 Permanent Bond
Refinanced Balance: $5.46 mn - Minimum Debt Payment/Month/Unit: $22.61 (R$50.65)
Bond Payoff
Initital Balance: $23.63 mn
4 Construction & Sell
577 Units/Yr
4 Permanent Bond
Refinanced Balance: $7.13 mn - Minimum Debt Payment/Month/Unit: $27.14 (R$60.79)
Bond Payoff
Assumptions CLT Bond Financing Rate:
9%
Permanent Bond Term:
20 years
CLT Buy-In Per Unit:
$ 8,577
CLT REVENUE STREAM
R$92 per unit 25% of monthly housing expense
$$$ $$ $ CLT
R$2,638,950 8% credit loss (R$204,433) 30% operations & maintenance (R$791,694) Infrastructure Debt Service (R$1,379,059) Balance R$257,108 Revenue
SWOT ANALYSIS
STRENGTHS • Site location, access and integration into existing urban fabric • Flexible growth model • Cost control through phasing • Affordable for beneficiaries • CLT oversight of criteria, procedures and enforcement • Community participation and control
WEAKNESSES • Up-front cost of infrastructure • Timely & reliable construction of infrastructure • Slow pace of home construction • Implementation of facilities and social services
OPPORTUNITIES • Replicable model for affordable housing • Promotion of health, safety & wellness • Creates and maintains affordable housing • Homeownership • Job creation
THREATS • Cost recovery • Beneficiary inability to make payments • Ensuring construction standards • Corruption • Political will & long-term commitment
FINANCIAL PROJECTIONS INCOME + HOUSING AFFORDABILITY
RDP Area Average median income per capita per month
R$ 543
30%
Pays installments to offset infrastructure costs
R$ 1,222:
Per Household or unit
2.25
Income earners per household
Micro-Loan Payment R$367.00 -92.00 CLT -45.00 Utilities =229.89
PV = R$9,247.67
30% of Income on Housing =
$367 per month
FINANCIAL PROJECTIONS PUBLIC SUBSIDY
PUBLIC SUBSIDY Government provides land cost per unit
R$3,033
9%
Up to
R$ 19,214: “Buy In” Unit Cost
Interest Rate on Bond
Subsidy level differs per income bracket
R$8,739 per unit
Voucher system for houses with lower levels of income
PHASING Start Year Size sq m Size Acres Size Hectares Infr. As % of Total housing expense Total Persons Total Units
Phase 1 2,014 65,000 16.1 6.5 17% 9,068 2,400
Phase 2 2,019 65,000 16.1 6.5 12% 9,068 2,400
Phase 3 2,023 60,000 14.8 6.0 12% 8,342 2,208
Phase 4 2,027 65,000 16.1 6.5 12% 9,068 2,400
Total 255,000 63.0 25.5 0% 35,545 9,408
Rio das Pedras Listings 2014
CONCLUSION
Sites & Services approach with a Community Land Trust ownership model • Replicates the positive attributes of favela-like incremental growth • Legitimizes ownership structure • Provides adequate health/safety/welfare services • Ensures long-term affordability and access to land and housing for those who need it most
Rio das Pedras 2014