Knowledge Exchange Tour in Brazil

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Knowledge Exchange Tour in BRAZIL: Building Capacity to Develop and Implement Inclusive, Effective and Large Scale Shelter Solutions for the Urban Poor


Objectives Promote inclusive, effective and sustainable approaches to low-income shelter provision by: 1) enhancing the knowledge and capacities of key stakeholders in developing the National Informal Settlement Upgrading Strategy or NISUS and improving the operational efficiency of the national program for informal settler families in danger areas; and 2) providing inputs to the preparation of the proposed Sustainable Metro Manila Urban Renewal Project.


Areas for Knowledge Exchange • • • • •

National housing policies Acceleration program to scale up housing production Subsidy framework for a segmented housing market Community-led approach housing Private sector engagement in low-income housing market


PHILIPPINE Delegation: HUDCC, NHA, SHFC, HDMF, DILG, and SHDA

(From L-R) Ana Oliveros, Len Barrientos, Armenia Ballesteros, Celia Alba, Francisco Fernandez, Zaki Abanes, Acmad Moti, Vic Balba



Brazilian Context • Housing deficit: 5.8 million in 2012 

Precarious Housing

Family cohabitation

Excessive burdens on rent (greater than or equal to 30% of household income)

Increased density in residences leased

• More than 3 million families living in the favelas (shanty town/slum) • Future demographic demand for housing estimated at 1.5 million households/year


Precarious Settlements Urban territories with varying dimensions and typologies, inhabited by low-income families and characterized by the presence of needs and inadequacies • Land and / or urban irregularity • Deficiency of infrastructure • Occupation of areas subject to flooding, landslides or other types of risk • High levels of density of settlements and buildings combined with constructive precariousness of housing units • Huge distances between the house and the work associated with inadequate transportation systems, expensive and with high level of discomfort and insecurity • Failure of public services in general, especially sanitation, education and health


Precarious Settlements Slums

Irregular low income settlements

clusters of households self-constructed, arranged in a disorderly fashion, dense and lacking in essential public services, occupying land owned by others

Self-construction of housing units at the absence or scarcity of basic urban infrastructure

Tenement/collective housing, consisting of building sub-divided into rented accommodation or assigned; supercrowded and sanitation facilities for common use

by lack of maintenance or because their execution by the government was incomplete, requiring rehabilitation and adaptation actions

Tenement housing

Old public housing complexes


Concept of Intervention

INTEGRATED: Incorporation of informal settlements into the formal city, integrated approach to urban, housing, land, social and environmental issues INTEGRAL: Definition of a� polygonal area� where all works and services required to improve housing conditions will be implemented


Concept of Intervention • Meeting all the basic needs identified in the area, especially related to the elimination of hazards and minimizing overcrowding, reshaping the lay out of the occupation • Service to all residents at the time of project design • Ensuring effective arrangements for the stabilization of settlement growth and expansion • Adaptation or improvement of functional relationships between the area of intervention and surroundings, especially the road system, to enable access to public services and emergency care


Concept of Intervention Urban Integration

• Improving quality of the urban area: implementation of basic infrastructure, containment and stabilization of soil to eliminate risks, construction of public facilities and adequacy of the road system and land subdivision Environmental Component

• Avoiding new occupations in areas where families have been resettled, they shall be revitalized in accordance to natural topographic profile and local urban / social features


Concept of Intervention Housing • Reshaping of occupation lay out and minimizing overcrowding, some relocations might be required (in the same area) or resettlement (in other areas/close by) Housing Improvements • Leveraging investments made by families in their homes, reducing therefore the amount to be invested by the government

Rocinha – Rio de Janeiro


National Housing Policies and Programs • Enacted Law No. 11124 in 2005 which combined all social housing programs at all government levels into a housing system and a housing fund • Created the Ministry of the Cities to strengthen the institutional mechanism for the reorganization of the housing policy and urban infrastructure in Brazil. • Sourced funds from the the Employees’ Severance Guarantee Fund (FGTS), Social Development Fund (FDS), the Home Leasing Fund (FAR), the FNHIS, and the Federal Budget (OGU).


National Housing Policies and Programs • Institutionalized housing finance systems that address housing delivery in all income classes.

 Four strategic pillars are: (1) financing and subsidy, (2) urban and land policy, (3) institutional framework, and (4) civil construction industry chain  To access grants from the National Affordable Housing Fund, local governments must: develop local affordable housing plans; create local affordable housing councils composed at least by 1/4 of social housing movements; and create local affordable housing funds.


National Housing Policies and Programs • “Economic stability, a gradual drop in interest rates and higher family income help explain rebound in housing finance in Brazil, but there are other factors. Housing policy, in the sense of providing housing to citizens in the form of either credit or government subsidies, benefited from more public resources, credit and the willingness of the private sector to play a more active role in this process, because housing became an attractive investment alternative.â€?


National Housing Policies and Programs • Prioritized implementation of programs that include urbanizing precarious settlements, providing housing and technical support, and helping design housing plans • Boosted funding for the Minha Casa, Minha Vida program to expand private housing market, which previously focused on homes for higher income groups, to meet the needs of families earning less than five minimum wages per month, by using both federal funds and tax incentives to support it.


National Housing Policies and Programs • Implemented the Growth Acceleration Program or PAC (Funded via a mix of private, state, federal and municipal investment) for:  Better Cities with focus on sanitation, urban mobility, pavement improvements and crime prevention;  Community Citizenship to augment the accessibility of state services in the poorer areas;  My House, My Life, which continues to reduce the country’s housing deficit, providing construction sector incentives and generating jobs;  Water and Light for All;  Transportation; and  Energy.


Housing – Funding Models

Model 1 - Municipality expropriates land in market value - Federal Government contribution of USD 35.000 (Minha Casa Minha Vida - Program) - Contractor builds the project - Municipal Housing Secretary (SEHAB) indicates the population to be covered with housing units Model 2 - Contractor buys land - Federal Government contribution of USD 35.000 (Minha Casa Minha Vida Program) - State Government contribution of USD 9.000 (Casa Paulista) - Municipal Government contribution of up to USD 9.000 (Casa Paulistana) - Contractor builds the project - SEHAB indicates the population to be covered with housing units Model 3 - Public Private Partnership developed by the State of São Paulo - Buildings to be revitalized in downtown area - SEHAB / State of São Paulo indicates the population to be covered with housing units


Programa Minha Casa Minha Vida (PMCMV) • Target Audience: INCOME BRACKET

AREA URBAN

COUNTRYSIDE

1

UNTIL R$ 1.600 / MONTH

UNTIL R$ 15.000 / YEAR

2

R$ 1.600 - R$ 3.275 / MONTH

R$ 15.000 - R$ 30.000 / YEAR

HOUSING VALUE

SUBSIDY

UNTIL R$ 76.000 UNTIL R$ 73.000 (*) UNTIL R$ 190.000 UNTIL R$ 25.000

3

R$ 3.2750 - R$ 5.000 / MONTH R$ 30.000 - R$ 60.000 / YEAR

(*) Can reach R$ 76.000 in case of families resettled due to works related to PAC or in case of loosing the only family house caused by public calamity or state for emergency.

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Delivered




“Access to decent housing is considered crucial to poverty reduction, but only integrated actions that also include social work as a pillar of housing policy, can lead to full local economic development and empowerment of vulnerable populations.�


Challenges to the Sustainability of the Minha Casa, Minha Vida • Improvement in the urban design and building quality of housing development • Promotion of the adoption of technologies and innovative solutions in order to qualify low income housing • Provision of incentives for architectural and constructive solutions that minimize condominium maintenance costs • Provision of incentive for better urban location in consolidated areas to guarantee access to complementary urban uses and public and community facilities


What enticed the private sector to participate? Inputs from CURY (Construction Company in Brazil)


• Changes in the income distribution stimulated the consumption in the real estate market • No long and complicated bidding process • Putting up of ‘one-stop shops’ for permits • Local government provided the facilities and equipment and the private sector focused on construction • Participatory approach, private sector regularly meets with government /funder (CAIXA)


HELIÓPOLIS – SÃO PAULO/SP

Macro drainage

Sewer, water, paving and drainage

Infrastructure

Cury In-City Housing Project


KEY LEARNINGS


KEY LEARNINGS


Ministry of Planning

Ministry of Cities

Ministry of Finance

Office of the Municipal Secretary of Housing

Site Visits

Office of the Municipal Secretary of Urban Development


The Municipal Housing Secretary (SEHAB) operates mainly in urbanization and land regularization in informal settlements, development of social work and condominium management in low-income housing enterprises, as well as on the coordination of the programs on tenements, water reservoirs, autoconstruction and the data system Habisp.


“The Habisp is a mapping system of precarious settlements in the city of Sao Paulo, which contains valuable information to address urban poverty. It stores, organizes, processes and produces high quality geographic information, which serves as support for the technicians of the Housing department in making decisions. It is an important tool to improve the municipal social housing quality in the city.�



Many projects are on public lands offered by the national government.



Site Visit These are housing development projects implemented in partnership between social movements and government. Both were funded by the government, with matching funds from social organizations and self-managed by communities with technical assistance from independent professionals (architects and engineers).


Portais, Osasco with Alexsandro Morais (SDI)

Discussion on housing development projects implemented in partnership between social movements and government.


Site Visit Center of Sao Paulo with Joaquim Carlos and Banespa (Unification of the Fights of Tenement Dwellers or ULC)


Community Community visits Center


Walk along favelas


Sao Paulo

Parais贸polis is the second largest precarious settlement in the city. With 60,000 dwellers, it detaches itself from the other settlements for occupying a private land of approximately 900,000 m虏 and being very well located with regard to working opportunities and access. The urbanization of Parais贸polis started in 2005, with financial investments from the federal, state and municipal governments, and it is currently in its third phase, which is estimated to finish by the end of 2013. The urbanization project provides the construction of around two thousand housing units, risk elimination, implementation of water and sewage systems and pavement.


Community-initiated approach where the beneficiaries were involved in the planning, development, design, construction, and estate management. Among their conditionalities: a balcony and space for parking. The community is required to provide allocate space for environmental compensation.


Brasilia

Sao Paulo

BRAZIL


THANK YOU!


References/Sources/Presentations from: • • • • • • • • • •

Celso Carvalho (National Secretary of Accessibility and Urban Programs Ministry of Cities); CAIXA; Júnia Santa Rosa (National Housing Substitute Secretary – Ministry of Cities) ; Maria Caldas (Director of the PAC Social and Urban Infrastructure Department – Ministry of Planning) Sao Paulo Housing Secretariat; Mirna Quinder, Belmino Chaves, Diretora do Departamento de Urbanização de Assentamentos Precários Maria do Carmo Avesani Director of the Housing Production Department Hailton Madureira de Almeida, Coordenador-Geral da COAPI, Tesouro Nacional / Ministério da Fazenda Thiago Soares Barbiza, Advisor to the Secretary of Housing Maura Iclea Bagnatori (Director for Social Support)


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