OCCUPYING BELO HORIZONTE’S CITY CENTER Social Leasing as an alternative to guarantee the right to the city
Artur Colito Julia Candelária Lygia Lott Mariana Fernandes
Abstract: It is notable, in Brazil, the historical difficulty in establishing housing for large segments of the population, especially in the urban contexts where most Brazilians live. In a context of peripheralization of these subjects, the current political and fiscal crisis undermines several demands and subjects such interests to a logic of financial speculation. Among the various existing tools, social leasing is one of the possibilities for guaranteeing fundamental rights in the urban context. Among the subjects affected by this govern-mentality are students from the center of Belo Horizonte, impaired in their access to education. Given this scenario, this article explores the possibilities of applying the social rental model for students in Belo Horizonte, as well as its challenges.
INTRODUCTION What is observed in the current socio-political context is the increasing commodification of rights that are constitutionally considered fundamental to human beings and that should not be subject to the logic of capital. Despite the guarantee of the right to land, housing and the City Statute law, what is seen in practice is the non-application of these legal instruments. In addition, the right to property is enhanced to the detriment of the principle of the social function of property, which would be the use of space for some purpose beneficial to society, with the possibilities being varied, as opposed to the property “standing still” or under-utilized, without no end but waiting for its valorization. Although there are arguments made by new right-wing political groups and “new” parties defending the non-intervention of the State in the economy as a solution for the Brazilian people, upon analyzing the real estate market, the result of inaction or even state conformity to the interests of speculation are terrible to the population: today, the informality of property is the rule, and housing consumes 30 to 40% (BRAZILIAN INSTITUTE OF GEOGRAPHY AND STATISTICS, 2013) of the income of the poorest families, a situation that does not allow the accumulation of wealth and improvement in the quality of life of these families. In this sense, the State's apparent eventual tolerance for occupations can even be seen as a dampening of social tensions (Maricato, 1996) in the context of a country where the wages of the majority of the population are depleted through the abusive prices of services, public and private, aggravated by a logic of the market and the search for profit - among them: •
The price of transportation like in Belo Horizonte, in which there was an
increase in the metro fare - which is a surplus (VELOSO, apud ANDRÉS, 2018) due to the investment of the Brazilian Urban Trains Company - from R$ 1.80 to R $3.40, an increase of 88%. •
Due to the increase in cooking gas prices in recent months, at a national
high, 24% of families in the Northeast started using firewood. According to the Continuous National Household Sample Survey, released by IBGE (2018), the share of households that use firewood or charcoal to prepare food increased from 16.1% to 17.6%. According to the newspaper Gazeta Online (2018), “in all, more than 1.2 million Brazilians have also started to use this type of fuel for cooking”. Also, according to the newspaper, the increase in value occurred as a result of Petrobras' new readjustment 2
methodology, which began to pass on more frequently the variations in the cost of the product. •
Even with 4 million houses built since 2002, during the Lula and Dilma
administrations, there was a significant increase in land prices, rents, and the housing deficit. This is partly explained by the State's failure, at all levels, to regulate real estate speculation in the country. In this way, a large part of the income of the lower classes is consumed by housing, since they pay rent or have to build their own homes in their spare time without being paid for it. Minha Casa Minha Vida - Entidades, which dialogued with housing movements for the construction of social housing, had its funding cut (PREFEITURA DE SÃO PAULO, 2016), by the interim government of Michel Temer. •
With the arrival of the current president Wilson Pinto, Eletrobras suffered
daily attacks with attempts at privatization. A pricing policy that does not target society and national development can further damage the lives of the poorest, benefited by social programs like “Luz Para Todos”. Eletrobras plants sell the cheapest electricity in Brazil because they are able to produce electricity efficiently at very low costs, and 87% of their production is water-based. While the population pays an average of R$ 0.68 per KWh, large companies pay R$ 0.07 per KWh (REDE BRASIL ATUAL, 2018). With the privatization, ANEEL has already recognized that these prices will be revised and increased by up to 16.7% for residential consumers (EXTRA, 2017). According to the Movement of People Affected by Dams, on its official website: “The price of electricity in Brazil was detached from the reality of the real production costs of our system, thus allowing the exploitation of labor to also be included in the tariffs paid by the entire population, allowing to generate extraordinary profits and remittances of value to shareholders. Two energy contracting environments were created, tariffs for “the captives” and tariffs for “the free”. The “captive” consumers are the residential sectors, small and medium industry, and small commerce. They are required to pay international tariffs, in our case, the most expensive in the world. And these are the ones that guarantee the “economic and financial balance” of the entire production chain, especially through 3
residential consumers. “Free” consumers, with high consumption, are privileged, receiving energy at the real cost of our system (80% lower). There are currently 665 consumers who consume 30% of all energy”. In this way, companies, which are the ones who profit the most, pay less, and the population, especially the poorest, pays more, having a significant part of their income consumed with the electricity tariff. No wonder, it is a common fact in Brazil the “cats” of electric light, which capture energy without the control of the energy distributors.
THE HISTORY OF HOUSING DEFICIT IN BELO HORIZONTE Belo Horizonte's housing deficit goes back to the very foundation of the city, designed by Aarão Reis according to the influence of hygienist, modern, republican principles, and with the desire to predict the future of the new capital. There is a solid historiographical basis about the construction of the new capital. According to Abílio Barreto (1928), in his classic “Belo Horizonte - Historical and descriptive memory”, in the region chosen to implement the project there was a village, which had developed around Fazenda do Cercado, which had been founded by João Leite da Silva Ortiz in 1701, in the region of the current Calafate neighborhood. The village, then called “Curral del Rei”, grew, and in 1823 its urban center had a population of 1,339 inhabitants (Public Archive of the City of Belo Horizonte. Collection of the Construction Commission of the New Capital of Minas). Projected at the end of the 19th century, the new capital emerged in a context marked by social, economic and political transformations aimed at ideas of progress, modernity and social renewal, with the intention of consolidating power and ensuring the political unity of the State. The urban center was established in the region where the city center is located today, having as main point of reference the old chapel of Nossa Senhora da Boa Viagem, where today the Cathedral of Boa Viagem is in the homonymous neighborhood. The city plan was originally divided into three concentric sectors, namely: urban, suburban, and rural (SINGER, 1968). The 4
urban area, planned to receive, mainly, the bureaucratic-administrative apparatus of the government and the public servants of the Government, would be delimited by the wide circular avenue of Contorno, within which a neighborhood was designated for these public service employees, called Employees. The location of the services was based on the wholesomeness, convenience and beautification triad. In the process of implantation, the working population, previously consolidated in the region, was summarily removed, under negligible indemnities, and redirected to areas further away from this urbanized nucleus that then formed. According to Guimarães (1991), the construction of country houses was foreseen for the suburban sector, therefore, not being the target of specific planning. The area had a lower standard of infrastructure, due to the greater concentration of urban equipment inside Avenida do Contorno, which already shows the elitist character of the Reis plan. The rural sector, surrounding the suburban area, was composed of farms, which should guarantee the city's agricultural supply (HORTA, 1997). This region covered areas now known as Calafate, Gameleira, Barreiro, among others (PILÓ, 1987). During the twentieth century, the capital showed a dizzying population growth, jumping from 13,472 inhabitants in 1900 to 2,232,747 at the turn of the millennium (IBGE, 2010), as a result of large migratory movements, especially from the interior of the state to the capital. A large part of this population did not find adequate housing in the metropolis, due to the lack of public policies and housing programs by governments aimed at the low-income population, thus contributing to the growth of old ‘favelas’ and the establishment of precarious settlements throughout the city. Based on the existing historiographic bases, more recent research shows the rational character of the city project, based on positivist philosophy. Among these studies, elements such as, for example, the proposal to make the capital of Minas Gerais a landmark for the installation of new standards of civility, based on an industrial logic, were evidenced: “[…] the city appears as a sign of a new time ; center of intellectual development and new forms of wealth and work; radiating focus of civilization and progress; a modern, hygienic and elegant place, capable of consolidating a vigorous power and ensuring the political unity of the State "(JULIÃO, 1996, p. 50). The influence of Haussmannian thought in the construction project was also highlighted, as well as other European rationality models (SALGUEIRO, 2001). Exquisite, modern, elegant 5
architecture was highly valued. In his article “A trip to Minas”, published in 1901, Artur Azevedo exposes his impression of the city:
“In that first quick and fleeting view, Bello Horizonte gave me a beautiful impression of opulence and grandeur. Not a street: all Avenues! Not a modest dwelling: all palaces, or haunted houses, of noble appearance, sacrificing a good part of the land to the garden. (...) In Bello Horizonte, there is no shortage of private houses with a luxurious, elegant and modern appearance.” (AZEVEDO, 1901-1902)
It is evident that, both in its origin and in its development, the city was, and still is, governed by an extremely elitist and market logic, and this characteristic has only intensified over time, since popular needs remain outside political attention. The urbanized area, especially the most central region - where there is a greater concentration of urban facilities and institutions for work, culture, leisure - is totally governed by market interests, dominated by real estate speculation. Thus, the existence of empty and underutilized buildings is notorious, simultaneously with a huge and worrying number of people homeless or in conditions of social vulnerability.
HOUSING OCCUPATIONS AND LAND REGULATION The speculative character of the real estate market exerts an intense transformation in the urban network, which may increase and decrease the density of buildings in different regions of the city. Places with growth potential and equipped with infrastructure, such as supermarkets, schools, hospitals, and accessibility are the main targets of this speculation. The properties in these areas are valued, allowing the seller to accumulate profits from the purchase and sale. Supply and demand freely control the construction of urban spaces. The large price fluctuations resulting from this independence exclude most of the low-income population. Thus, the 6
phenomenon called gentrification occurs, in which the existing population in the place is unable to remain regular, due to the increase in the cost of living, and needs to move to slums, irregular subdivisions or illegal occupations in precarious conditions on the peripheries of urban centers. Housing policies, public financing and subsidies are not enough to resolve this impasse, making socio-spatial segregation an extremely remarkable reality in Brazilian cities. For the formalization and qualification of these excluded places, Land Regularization is necessary, a legal and economic process that, through the intervention of the public power in the property, in virtue of social interest, legalizes the permanence of proprietors in urban areas occupied in disagreement with the law, in order to guarantee the right to housing and the social function of property. Through this process, the locals become part of the urban fabric and take advantage of the rights and duties of the city's legislation.
SOCIAL LEASE Generally speaking, social leasing is an alternative to access housing that is not linked to the appropriation value, that is, the resident does not buy the property, he does not own the property. The State maintains control over the assets and allows the user to rent, which is defined according to the income, without generating losses for the public authorities. It is not necessarily up to the State to produce housing, so that social leasing generally occurs in buildings produced by third parties or in places where they do not exercise a social function. Thus, it is understood that social leasing can be a viable option to address the problem of homelessness in Belo Horizonte. So far, housing policies developed by the government have focused on the acquisition of a home by the resident, which, historically, has not solved the deficit issue.
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The implementation of the rental model in urban centers would solve this issue in a practical way, allocating the population that lives in a precarious and irregular way in qualified areas with urban infrastructure. It can also boost the process of requalifying degraded areas, generating new appropriations of places previously excluded from the urban fabric. In addition, social leasing allows for more efficient control by the State, which, by managing a portion of buildings, ends up reducing the autonomy and strength of the real estate market, containing the interference it has on the low-income population.
SOCIAL LEASE IN THE WORLD The Second World War left catastrophic consequences in all sectors, shaking the world economy and politics, and affecting, mainly, people's way of life. Housing and, most importantly, housing for the less favored classes - which grew considerably during this period needed to be rethought as much as access, since it is a basic right of the population, as well as the influence that the architecture of the new buildings built on large scales would exercise the role of restructuring urbanity. With such a shortage of housing, housing policies, in terms of housing rentals, have strengthened and become one of the main foundations in the restructuring of economies (PAOLINELLI, 2017). In a general scenario, the countries that opted for social rent as a way to solve the housing crisis, going in the opposite direction to the advance of neoliberalism, which drives the search for home ownership, had several experiences, positive and negative, which exemplify solutions that could actually work in the country and in Belo Horizonte. What is possible to observe from the experiences of those who approached this proposal is the need for a social mix, in order to diversify the uses and social classes, avoiding the creation of a certain stigma where these dwellings are found. In England, for example, the lack of diversity and the large concentration of people generated “ghettoization” and significant social segregation in the areas determined for social housing - like the parallel observed by the housing models installed by the program “Minha Casa Minha Vida” " in Brazil. In France, on the other hand, there is a policy in which companies with more than ten employees must pay a fee called “1% housing” (PAOLINELLI, 2017), which is directed to a housing fund in the country, serving as the main income for the 8
maintenance of housing for social rental and assistance to those who really need housing. In the United States of America, housing policy, on the other hand, was strongly directed towards mortgages and home financing, but, as in England, investments in the sector were reduced over time, resulting in the opposite of what was desired, increasing stigmatization, poverty and marginalization. Thus, it is perceived that the participation of the State in relation to housing policies is fundamental, as well as the change in the concept that entire areas should be reserved only for social housing - be it from the home or with the social lease- and that, for the sustainability of living, the social mix and the diversity of uses in cities are fundamental.
SOCIAL LEASING IN BRAZIL Social leasing in Brazil - or the lack of it - can be justified based on the history of housing policies, some of them with a strong influence of neoliberalism as discussed above, in which private property is used as a strategy to combine public investments with interests in the civil construction sector (PAOLINELLI, 2017). In this way, housing is treated as a commodity and not as a basic right of the population and starts to strengthen capitalism by giving more advantages to investors, who have a direct relationship with Brazilian government. As examples of this force of influence, in 1942 the ‘Lei do Inquilinato’ (‘Tenancy Law’) was established (PAOLINELLI, 2017), which dealt with rent freezes, discouraging the profitability of housing and strengthening the transition from renting to home ownership and the Condominium Law, which allowed individual ownership in collective housing. However, even in this scenario, there were some attempts to establish and boost social rent, such as the creation of the National Housing Plan in 2004, which promoted social rental in housing units in historic centers and consolidated urban areas, stimulating the “inclusion of various forms of ownership as modalities accepted by the SNHIS, such as the granting of the real right of use, the surface right, social lease, among others ”(MINISTRY OF CITIES, 2009, p.126), with the objective of “[...] being an alternative access to housing that allows spatial mobility of beneficiaries who need to change their places of 9
residence or who, due to their condition of social vulnerability, cannot be responsible for the ownership of a property.” (MINISTRY OF CITIES, 2009, p.156)
However, due to the economic instability generated by the international crisis in 2008, the project was not implemented. In 2008, the Ministry of Cities promoted the International Seminar on Social Leasing, and during the event the high prices of well-located land were highlighted as the main obstacle to the application of this policy (PAOLINELLI, 2017). Bill 6,342, which has a greater social assistance character, was also addressed, with the creation of exclusive public parks for low-income and vulnerable groups, and Resolution No. 75 of the National Council of Cities, which discusses a social mix based on rents compatible with income and the assignment of public or private properties to the real estate stock.
LIVING IN THE CENTRE AND THE RIGHT TO THE CITY According to David Harvey,
“The right to the city is, therefore, much more than a right of individual or group access to the resources that the city incorporates: it is a right to change and reinvent the city more in line with our deepest desires. Furthermore, it is more a collective than an individual right, since reinventing the city inevitably depends on the exercise of collective power over the urbanization process.’’ (HARVEY, 2014, p. 28)
It is necessary to understand all the ramifications that this explanation implies, including that the right to housing is intrinsic to the right to the city. This means that the right to housing, 10
being exercised in a practical way, and not only on paper, is a requirement to integrate into the city. In other words, having a house in good condition and well located is a requirement for the individual to have access to everything the city can offer. A person does not only need a place to live, since housing is not isolated, but an integral part of the city, which needs infrastructure and basic services that exist for the reproduction of social life. The right to education also occurs in a localized way, that is, it takes place in a specific physical space, whether in the home itself, through homeschooling, or in an educational institution. The location of this institution, as well as its proximity to transportation lines such as buses and subways, are determining factors for having access to them, so that when implementing a campus in an isolated region there is a limitation on access, which consequently creates barriers and eliminates this teaching. For this reason, several universities include transport assistance, and in some cases free transportation, in their student assistance policies as it guarantees access to quality education for those with greater financial difficulties. In addition to being the space that guarantees the right to education for these young people, it is also in the Centre that there is a great concentration of cultural and leisure activities in the municipality, important factors in complementation, training and even for the health of these individuals. Due to high rental prices in the Centre, several of these low-income students, mostly black, are unable to live there, characterizing a form of spatial segregation, a continuous trend of veiled expulsion of the poorest, simultaneously with the concentration of the rich in this space (VILLAÇA, 2001), which historically has become one of the most structured in the city. Today, more than 2600 students enroll each year (E-MEC) in higher education institutions in the Centre, such as UFMG and PUC, disregarding students from UniBH, UNA, preparatory courses for college entrance exams and high school students. Many of these people come from other cities and states, or live in neighborhoods far from their college, spending, in addition to money, hours a day to access education and work. Thus, living in the Centre means easier access to educational spaces and guarantee of the right to education, which make up the services present in the city. However, so far, in this space there is no institutionalized student housing, only isolated attempts to foster (solidarity housing) such as the Occupation of Hospital Borges da Costa, founded in 1977, which was evicted, and the Occupation of MOFUCE, in 1985, that lasts until today (ALMEIDA, 2016).
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SOCIAL LEASE AS A PROPOSAL FOR STUDENTS IN THE CENTRE OF BELO HORIZONTE The Internacional Plaza Hotel, located between Av. Do Contorno and Rio de Janeiro, has 14 floors, 96 apartments and 40 parking spaces and has been closed at least since 2007. It was one of the buildings planned for possible residential use in the Hipercentre Rehabilitation Plan, which was carried out at the request of the Municipality of Belo Horizonte at the time, but since then the land has functioned only as a rotating garage and is the target of intense real estate speculation. The use of the garage for 10 years, without using all the rest of the property, is a way to "make up" the full exercise of the social function of the property, aiming at valuing the land through its sale, offered at R$ 25 million (MORAES, Tatiana, in. Jornal Hoje Em Dia, 2014): '' One of the owners, Paulo Cardoso, son of businessman Ferdinando, says that the interest is to sell the building, but he does not rule out the reopening if he gets a partner. '' The interests over the terrain are shared by other economic groups, often justified on hygienist arguments: '' The Belo Horizonte Centre is about to experience a true revolution. Dirty, ingrained with completely abandoned blocks and full of old and scrapped buildings, the region that includes streets like Bahia, Rio de Janeiro and São Paulo is the focus of major revitalization projects linked to the real estate sector.” After a long period of resistance and political struggle in search of ensuring the right to housing and the city, the Movement of Struggle in Neighborhoods, Villages and Favelas - MLB, managed to have this building assigned to residents of an occupation that had begun in another empty building in downtown Belo Horizonte. The old hotel, which had long remained without fulfilling its social function, then became the home of the then occupants, after negotiation with the State of Minas Gerais. Thus, although provisionally, these people have ensured both their right to live and access to their places of work, culture, leisure, education, and health. It is important to note that there are still many issues to be resolved, since the mere physical proximity of these facilities and institutions does not in itself guarantee that this access is equal. This proximity, however, is a big step towards getting closer and closer to this reality. Based on this exemplary case, following the proposal in the Hipercentre Rehabilitation Plan, it is deemed necessary to claim an empty building located in the central region of Belo 12
Horizonte as housing for low-income students studying in the region, through social leasing. According to Harvey, “To claim the right to the city in the sense that I propose here is to claim some type of configuring power over urbanization processes, over the way our cities are made and remade, and presupposes doing so in a radical and fundamental way.’’ (HARVEY, 2014, p. 30)
Considering that in the Belo Horizonte hyper center, 11 abandoned buildings and 20 partially occupied ones were mapped (GRECO, 2017), some of them were analyzed and the claim for the building on Avenida do Contorno, 842, was noted. The building housed the former Faculty of Engineering of the Federal University of Minas Gerais, which was moved from the Centre to the Pampulha Campus in early 2010 and has been empty since then. For that matter, the building has been deteriorating over time, and in 2013 it was reported as “the target of vandalism and deteriorated by abandonment” (BAND NEWS, 2013). Also, according to the report, the new headquarters of the Regional Labor Court (TRT) would be installed there, but there was still no forecast for the start of works. According to the Municipal Secretariat for Urban Regulation, at the time the proposed changes to the listed parts of the property had already been approved by the Deliberative Council for Cultural Heritage. The issues to be settled were related to the Land Use and Occupation Law. The project presented by PBH would imply changes in the block between Avenida do Contorno, Guaicurus, Espírito Santo and Bahia streets and part of the block between Guaicurus, Bahia and Espírito Santo streets. (STATE OF MINAS, 2014). To date, the project has not yet been carried out, and the building still has no social function. Both the location of the building and its proportions are very suitable for use as university housing. Considering that there are 89 idle properties in the hypercenter that vary between public and private buildings, houses and vacant lots according to a survey carried out by the SubSecretariat for Urban Planning, the claim for the building is made in order to highlight the current difficulties in implementing an urban reform policy at a structural level, extremely 13
necessary. The rental proposals inevitably come up against the issue of the number of houses offered and the restriction of access to this private market. Thinking more punctually, the results may be more concrete. Thus, the Belo Horizonte City Hall would pay for the renovations and part of the rent for the apartments - which would have to be regulated - and the remaining part would be supplemented by the residents themselves, who could remain in the apartments during their link with the University. It is worth remembering that the social function of the property appears as a duty of the owner according to the Federal Constitution of 1988. In the same line, the current Master Plan already states that the land planning must ensure the right to housing, as well as meeting the needs of education, in addition to the increase in social housing. The Executive can even “... determine the compulsory subdivision, building or use of unused or underutilized urban land, observing the potential and vocations of the different planning zones and units of the Municipality, aiming at fulfilling its social function.” If the owner refused, it would be possible to apply the Progressive Property Tax. The financing possibilities for these reforms would come, for example, through the Onerous Grant provided for in the new Master Plan, recently approved, in the first round, on November 20, 2018. (BHAZ, 2018)
CONCLUSION There are some challenges with regard to the implementation of public social lease policies: the real estate speculation of the owners and brokers, who profit from the appreciation of the land through the sale or rental price of the land, even if it does not fulfill its social function; the urban illiteracy of the judiciary (MARICATO, 2002), which practically absolutizes the right to property, ignoring the legal devices of state control over the land, such as the Statute of Cities, and the difficulty of dialogue and dispute with city halls, which in the current conjuncture has been taken by new characters who deny politics and pose themselves as managers. The State needs to regulate land speculation, at the risk of increasing the abyss and social injustices that today mark the difference in conditions between the poor majority and the wealthy 14
minority of the Brazilian population. Social leasing does not solve all housing and city problems, but in different parts of the world it has become a step in the realization of a right to a more humane and caring city for its differences. It contemplates an alternative to the idea of home ownership and works by reducing the power and autonomy of the real estate market without burdening the state, allowing decent and safe housing for the low-income class. In addition, the relationship between the right to housing, the right to education and the right to the city shows that we cannot observe rights in isolation, as they would bring incomplete solutions and do not go to the root of the problems. In addition to the mere plan of ideas, as the social leasing proposed in this article, is a public policy that would involve various spheres of power, its realization necessarily also involves the mobilization and political pressure of organized civil society, especially the student movement, which would be the biggest beneficiaries of this initiative. It is worth noting that such achievements are indeed possible, such as the victorious political struggle of the Movement for Struggle in Neighborhoods, Villages and Favelas, which began with the urban occupation of Carolina Maria de Jesus, another empty building in downtown Belo Horizonte, and, in the middle of completing this article and after negotiating with the State of Minas Gerais, he was awarded the International Plaza Hotel for the occupants' housing. Thus, the execution of this student housing is part of an agenda of demands and needs that the population has for their rights to be realized, but that until today has received very little attention from the academic community and researchers, in general. The destination of the hotel chosen for the Occupation only demonstrates the feasibility of enforcing the social function in the idle properties of the Hipercentre in Belo Horizonte and all over Brazil, which today reflects similar conditions, especially in large cities.
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A Comissão Organizadora do XVIII Encontro Nacional da Anpur, realizado em Natal, nos dias 27 a 31 de maio de 2019, certifica que o artigo: OCUPANDO O CENTRO DE BELO HORIZONTE - LOCAçãO SOCIAL COMO ALTERNATIVA PARA GARANTIR O DIREITO à CIDADE de autoria de: JúLIA CANDELáRIA DIAS BATISTA, LYGIA ARAúJO BARBOSA LOTT, MARIANA CRISTINA FERNANDES PINTO E ARTUR FREIXEDAS COLITO foi apresentado na Sessão Temática: Direito à Cidade e à Moradia.
Código Identificador Único - 0e9146c9d30ab4dc08c69aad6314a08d