Slum Upgrading using Land Value Capture Instruments in Brazil: achievements and challenges
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1 Slum Upgrading using Land Value Capture Instruments in Brazil: achievements and challenges Paula Freire Santoro architect urbanist, PhD in Habitat, teacher at Architecture and Urbanism at São Paulo University / 04 December 2013 SLUM UPGRADING USING PARTICIPATORY AND INCLUSIVE LAND READJUSTMENT: DEFINING THE RULES OF THE GAME EXPERT GROUP MEETING (EGM) Nairobi, 3rd and 4th of December, 2013.
2 Sumary A Slum upgrading and empty Special Social Housing Zones (ZEIS) B Special Social Housing Zone (ZEIS) as an inclusionary housing instrument? or ZEIS + value capture instruments? C CASES D Final remarks
3 Favela Jardim Santa Amélia / Santa Margarida - Área de lazer e unidades habitacionais Programa Guarapiranga 1998 São Paulo. Fonte: Secretaria de Saneamento e Energia, 2008.ca Slum isn t a problem 1990 Slum isn t (more) a problem Transform public policies over this spaces, creating a new way of intervention that intends to: qualify urban settlements and environment Recognize right to the city and housing rights, garanteeing land settlements tenure Making slum upgrading that respects their social and spatial organization
4 Another strategy chosen was: to overcome social territorial exclusion models through urban regulation Hypothesis: intervention in urban regulations to produce the opposite effect! Opportunity: City Statute (Federal law n /01) Need to do master plans until 2006!
5 B Slum upgrading and empty Special Social Housing Zones (ZEIS)
6 Slum upgrading and Special Social Housing Zones (ZEIS) Special Social Housing Zones (SHSZ)/ZEIS means inclusion, in urban plans and zoning, of social housing zones, priorize afordable housing projects production.
7 ZEIS usual tipologies Usual tipologies 1 Slum upgrading ZEIS urban popular informal settlements. Objective Recognize informal settlements and integrate to the city
8 ZEIS usual tipologies 2 Empty ZEIS empty or not used land in urbanized and infrastructured regions Objectives Increase offer of infrastructured land to produce new social housing projects
9 ZEIS dissemination Municipalities that previewd ZEIS in municipal regulatory sistem REGIÕES DO PAÍS PLANOS DIRETORES ZEIS Abs. %* Abs. %** NORTE , ,8 NORDESTE , ,1 SUDESTE , ,0 SUL , ,6 CENTRO , ,5 OESTE BRASIL ,
10 1 Special Social Housing Zones to increase land offer to produce social housing Diadema, experience more documented and evaluated Dense hab/km2 22% basin areas Exchanged industrial uses to social housing use AEIS vacíos AEIS ocupadas
11 Diadema achievements 20 years 219 areas transformed 152 completely upgraded Turn de 30% to 3% people em slums 90% of the streets whith water and sewage In 4 years, 55% of the areas were bought by municipality or social movements 4 more - 70% 8 mil nuevas viviendas Environmental control and protection
12 2 Special Social Housing Zones to recognize housing rights and avoid evictions Salvador has the mission to arculate slum upgrading with new housing projects near by or inside the informal settlemens Nova Constituinte Salvador/BA
13 2 Special Social Housing Zones to recognize housing rights and avoid evictions Rocinha or Nova Vila Esperança 13 Salvador/BA
14 2 Special Social Housing Zones to recognize housing rights and avoid evictions Taboão da Serra Oswaldinho new housings to people that were relocated from risk areas Program Minha Casa Minha Vida to produce houses State funded water canal
15 3 Special Social Housing Zone needs mediation, negotiation and public government has to do an active management of local housing policy ZEIS that had public government active participation as a mediator: 1 Have implemented more projects or have negotiated more land, avoiding land speculation (ex. Diadema have more than70% of land negotiated); 2 Had better project qualities, architectural and urban quality; 3 Used a more diverse option of housing projects funds (subsidized or not) municipal, state or federal.
16 4 ZEIS trying to get scale Master Plan ZEIS in São Paulo (10% land) 4 tipologies: ZEIS 1 and ZEIS 4 ocupyed (slums and informal plots); and ZEIS 2 and ZEIS 3 empty or not used, or sub-used areas to produce social housing
17 4 Special Social Housing Zones in São Paulo BEFORE: Social housing jan dec projects : 242 (69%) outside ZEIS and 110 (31%) in ZEIS unidades: u. h. (71%) fora de ZEIS e u. h. (29%) em ZEIS. HUGE PART OF PROJECTS WERE PUBLIC PROJECTS (69%) AFTER: Increased housing produccion: 2003 a units 2005 e units. ZEIS 3 from total 1 million m2: 51% were ocupied, received proyects 23,8% houses produced by government 22,1% houses produced by private sector 22,2% houses that aren t social housing 31,9% public equipments
18 5 Special Social Housing Zones as more of the same ZEIS as strategy to disminue land regulation Sometimes: less infrastructure exigencies; alowing small plots or unit areas; 18
19 C Special Social Housing Zone (ZEIS) as an inclusionary housing instrument? or Special Social Housing Zone (ZEIS) + Value Capture Instruments, is it possible?
20 Special Social Housing Zone (ZEIS) as an inclusionary housing instrument? ZEIS is not an inclusionary housing intrument in strictu sensus, if we look to literature: Inclusionary housing is a means of using the planning system to create affordable housing and social inclusion by capturing resources created throught the marketplace (Calavita & Mallach, 2010, p.1) Special Social Housing Zones is not necessarily produced by land value capture instruments, but can be! Brazil have lots of land value capture instruments
21 Selling Building Rights Permits Urban regulatory instrument that allows building rights limits basic and maximum, stablished oriented by infrastructure suport limits at the municipality master plan, by buying building rights permits selled by public government The money goes to a Special Fund. Must have social participatory processes! Urban Development Fund Slum upgrading and regularization Social Housing programs and policies Land bank Urban sprawl regulation Urban equipments Leisure areas Environmental conservation policies Histocial, Cultural and landscape protected areas
22 Uses of funds for housing policies Some Brazilian experiences used Urban Development Fund to produce social housing, more rarely to slum upgrading but to produce new houses! Reproduce patterns periferical ex. Curitiba produced almost 41 thousands of social housings (houses, plots, land tenure/slum upgrading) in 5 years (between ). Althought in peripherical areas Fonte: Briceño, 2004.
23 Joint Urban Operations Areas drawed at municipalities master plans to urban renewal projects Urban plan definition uses, urban desing, costs Do not use land readjustment, but usually stimulate joining parcels (ex. Faria Lima) Sell buiding rights permits to get resources to fund the investiments stablished in the Urban Operation law Resources are apart from Public Budget, has a special account and Fund which resources have fo finance interventions.
24 Joint Urban Operations x Selling buiding rights Main diferences from Consortiated Urban Operations to pure selling building rights Land value is produced and captured at the same area: re-valuating processes Urban Operations can use Building Rights Certificate, negotiated in leilões (CEPACs) Critical view based on what were experiencied in São Paulo: Land value is produced and captured at the same area: re-valuating processes Had no urban planning, only a list of interventions There s no relation betwen costs and benefits Has no ending! Urban Operations started on 1991 Some interventions were done, some don t.
25 Slum upgrading in Joint Urban Operations Not always recognize informal settlements as permanent, its rights and lists as intervention that should be payed by Urban Operations resources Special Social Housing Zones could be used for that! Or other instruments Assume pressure to better uses, better achievements as a goal, guaranteeing bigger rentability - imposes market logic over public interests/needs Frequently promote evictions Re-valuation processes: increasing land prices = imposibility or dificulty in implementing social programs, such as social housing programs
26 D CASES
27 D.1 evictions with different solutions that relocated at the same place in a context of strong land market ZEIS + Urban Operation 1 Jardim Edite 2 Estevão Baião e Corruíras 3 Buraco Quente e Comando
28 Operação Urbana Água Branca ha Operação Urbana Consorciada Faria Lima 1995 / ha Operação Urbana Centro ha Operação Urbana Anhangabaú 1991 Operação Urbana Consorciada Água Espraiada ha Operação Urbana Consorciada Rio Verde-Jacú ha Fonte: ppt Eduardo Della Mana, 2011.
29 1 Jardim Edite - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation Jardim Edith Edith 29 São Paulo/SP Fonte do mapa da OUC: Maleronka, 2010, p.136. Elaboração da autora a partir de informações da Emurb e do Grupo da Operação Urbana até o ano de 2009.
30
31 Jardim Edite - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation Case of Special Social Housing Zone (ZEIS) as recognition of housing right and prevent evictions 1984 DER planned to open a Mini road ring and expropriate properties around Água Espraiada River, but gave up 1987 first study showed families in slums (first perimeter was smaller than actual)
32 Edith São Paulo/SP Jardim Edite - São Paulo 1991 Environmental Impact Study families in informal settlements had to have a housing solution This study estimated that 23% of the money obtained by selling rights to built was going to be used to produce housing solution to this families, but also part of the money obtained with housing financiation.
33 Jardim Edite - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation 1994 Maluf ( ) Urban project - opening Águas Espraiadas Avenue + making a river canal 15% of families were out and relocated in new social housing in Jaguaré, 10 km from original place without using Fund resources! 5% were to East Zone, 30 km from original place; majority received money to come back to original city (migration question) Fonte: Fix 2007.
34 Jardim Edite - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation 2001 Revision after City Statute was approved (Federal law /01) Law Inclusion of 24 perimeters of Special Social Housing Zones recognizing informal settlements Created a Group that monitorates this Urban Operation Possibilitate resources financed Slum upgrading Evictions threat, huge and intense conflict, big social net, reinforcement mobilization Jardim Edite was evicted! * Note: why the option was for a new project, and not to urbanize? Difficulty to mantaing poors in the inner city is still operating
35 Edith 35 São Paulo/SP Judicialization: Civil Process against Public Government exigiu que Social Housing were built in the same place where there was a slum becouse it was a Special Social Housing Zone! 2012/13 received Social Housing Project families
36 2 Estevão Baião e Corruíras - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation Estevão Baião Corruíras Edith 36 São Paulo/SP Fonte do mapa da OUC: Maleronka, 2010, p.136. Elaboração da autora a partir de informações da Emurb e do Grupo da Operação Urbana até o ano de 2009.
37 Corujas - São Paulo Special Social Housing Zone in Águas Espraiadas Urban Operation Edith 37 São Paulo/SP Producced public Social Housing In ocupied settlements Corruíras em ZEIS da Operação Urbana Água Branca. Disponível em acesso 28/04/2013.
38 Joint Urban Operation How much money were invested in producing Social Housing in ZEIS? Social housing in Joint Urban Operations Sao Paulo Number of houses (built or under building) Planned houses Social rental assistance Expropriation Executed Planned Faria Lima R$ R$ R$ R$ Agua Espraiada R$ R$ TOTAL R$ R$ R$ R$ Jardim Edite ,13 Estevão Baião ,09 Corruíras ,40 OUC Faria Lima 8% OUC Águas Espraiadas 7% OUC Água Branca 0% Overall total expenditure Financial resources involved R$
39 Edith São Paulo/SP Comando and Buraco Quente - São Paulo Inside Urban Operation!! Evicted for the construction of Monorail done for the 2014 World Cup Families received for the tenure land and for the benefits constructed.
40 D.2 Slum upgrading without value capture instruments in a context of strong an active land market
41 Edith São Paulo/SP Paraisópolis
42 Paraisópolis slum upgrading without VCInstruments + dynamic land market DATA CITY HALL inhabitants housings 2 nd biggest slum in population in São Paulo
43 Public intervention 2002 São Paulo Master Plan 2004 Strategic Regional Plans Butantã and Campo Limpo Special Social Housing Zone (ZEIS) 1 slums 2 cortiços ZEIS 1 W050 CL ZEIS 3 W001 CL ZEIS 1 W045 BT ZEIS 1 W046 BT ZEIS 1 W047 BT ZEIS 1 W048 BT
44 Public intervention 2006 Right to Build Transfer at Special Social Housing Zone in Paraisópolis to regularization if the owners donate their properties. Decreto n /06 All lots that can receive according to São Paulo Master Plan Minimun Coefficient of Utilization Basic Coefficient of Utilization Maximum Coefficient of Utilization Only 50% of what can be transfered: Maximum minus Basic Coefficient of Utilization How to calculate Encouraging factor = 1,3
45 Public intervention 2005 Law /05 Allows municipality to receive properties donated to Urbanization and Regularization Paraisópolis Program And to forgive / amnistiate taxes debts over these properties. Green Lots offered by municipality to owners Orange Lots offered by others owners
46 Urbanization
47
48
49 New Paraisópolis Program 2005 today july 2006 Total budget - R$ 528,7 millions / aprox. US$ 264 mi families relocation Risk area elimination New roads Perimetral Avenue + streets pavimentation Social equipments new housing units 65% São Paulo Municipality 18% São Paulo State Government 14% Federal Government - PAC /AGU
50 New Paraisópolis Program Infrastructure housing units CDHU Health Ambulatorial Care (AMA) Health Basic Care (UBS) Psyco Social Care Center (CAPS) CEU Paraisópolis students Centro de Educação Infantil (CEI) Escola Técnica Estadual (Etec) Governo do Estado Estimated families indexed by the municipality 11% removal (against 30% removal of the first plan) persons removed (Sehab)
51 Fonte: Disponível em acesso 03/07/2012. Before Paraisópolis... Campo Limpo I 2008 Housing and Urban Development Company (CDHU) São Paulo State Government 278 housing apartments Rua José Barros Magaldi, Jardim São Luís, Campo Limpo Near Paraisópolis? 7,7 km
52 D.3 ZEIS in New Urban Operations
53 Edith São Paulo/SP Urban Operation Água Branca Law approved last month
54 E Final remarks
55 Challenges Yes, we have instruments to do land value capture Yes, we have money from Urban Operation but we use public money to do a transport + housing intervention Yes, we solved some properties question on slum upgradig by using Rights to Build Transference But, we traditionally use the more expensive option: public budget to finance slum upgrading
56 Challenges to do ex-ante avoinding high pos urbanization costs, including social ones! produce before growing, antecipating demand Land policies garantee that poor can live in the inner city, not out of it Overcome best and bigger uses ditactorship Ensure environment sustainability and social housing in central and valueted areas Manteing people!
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