The severe housing shortage in the city is particularly detrimental to its poorest residents. data shows that at least 13,706 households in the city (those who earn less than three times monthly minimum wage, US$250), live in slums and squatters settlements. Another 53,214 households share housing with others, while 22,297 live in overcrowded conditions.
Affordable housing is an important component of Mayor Haddad’s master plan for Sao Paulo. This plan was praised by the United Nations Habitat III conference held in October, for its focus on “social urbanism”. It calls for the upgrading of slums, granting land tenures to residents, and new construction. Rent subsidies are also a key component.
The city’s legislature will vote on the proposal in the next few weeks. However, approval does not guarantee that it will be implemented. Doria was elected by promising to steer the city in a new direction compared to his Workers’ Party predecessor. His urban development secretary had already promised to make the housing regulations “appealing to” real estate developers.
Squatters protested their eviction in downtown Sao Paulo. Paulo Whitaker/Reuters
My house, my life and my struggle
Brazil’s nationwide focus on home ownership failed to provide adequate housing for the poorest citizens of the country. In contrast to the United States and Europe, where government-owned rental properties made up a large part of housing stock, Brazilian policy encourages people to buy apartments rather than rent them.
In 2009, the federal Minha Casa Minha Vida program (“My House My Life”) was launched. Its goal is to make homeownership more accessible through high subsidies and low monthly payments. 2.6 million homes have been constructed to date.
Many obstacles prevent poor households from owning a home. Minha Casa Minha Vida eased legal requirements for contracts as many people living and working in the informal sector cannot provide proofs of income or other required documentation.
Families who earn low wages as street vendors or housekeepers may also find it difficult to remain in their home. According to the University of Sao Paulo’s LabCidade urban planning think tank, the lowest-earning Minha Casa Minha Vida recipients struggle to pay for even reduced utility and condo fees.
Minha Casa Minha Vida unintentionally has sent many poor people into urban exile. The same LabCidade reported that the majority of the most affordable large-city units were located on the outskirts where land prices were lower. Many of the poorest recipients are, therefore, stranded in areas far away from public transport and downtown employment opportunities.
The real estate market can be very aggressive for those who buy more homes in more expensive cities. Sao Paulo’s real estate prices increased 153% from 2009 to 2012. The poorest families are left with substandard housing conditions while those who benefit from the subsidies resell them.
As a strategy for affordable housing, home ownership has the added disadvantage of restricting mobility. Unemployed or underemployed homeowners are less able to move around to find new jobs because they have a fixed location for the long or medium term.
Rio de Janeiro has moved 200 homeless families to these affordable housing units. But can they afford it? Ricardo Moraes/Reuters
Roof over your head, or your own roof?
Brazil must provide alternative housing options to its citizens to meet their needs. Rent subsidies like those in Haddad’s plan for housing are crucial. But I also look internationally for successful models Brazil could copy.
Collaborative ownership is a common model of affordable housing in Uruguay and in other Latin American countries. Brazil would benefit from co-ops, given its organized housing movements and squatters that occupy abandoned buildings in cities throughout the country.
Community-based land trusts that finance nonprofit organizations to build and manage residential developments on behalf of a community would be another useful addition. According to United Nations, this approach has proven successful in providing affordable housing and land access in the US. Pilots have also been conducted in Kenya and other countries.
Housing projects are also available. The New York City Housing Authority, despite its documented imperfections, is an important, successful example of affordable housing policy. Brazil does not have a municipality that is responsible for public housing. The model also includes a system for selecting tenants and financial management of general properties.
My research indicates that Sao Paulo has some experience with this, but the results have been mixed. In 2002, the city converted six existing buildings into public housing. This included Parque do Gato, which was designed to house people who had been relocated from slums. Vila dos idosos, which was created for retired people.
The former is in a poor state of repair. Around 70% of the residents cannot pay their maintenance fees because there was no jobs program. Seniors Village is maintained well, and the fixed incomes of retirees have allowed them to pay their bills on time.
According to a report from 2014, Brazil’s policy of building new homes by buying land and investing in it has ignored the needs of its poorest residents and increased the real estate market. This “benefits primarily investors and owners, and makes it harder for low-income people to get adequate housing.”
