THE RECENT PARAMETERS OF THE PRIVATE MARKET FOR PRODUCING HOUSING UNITS IN BRAZIL

1. THE RECENT PARAMETERS OF THE PRIVATE MARKET FOR PRODUCING HOUSING UNITS IN BRAZIL Profa. Dra. Karina Leitão São Paulo – FAUUSP – June 2012

2. RESEARCH COORDINATOR AT LABHAB (Housing and Human Settlements Lab): DR. JOÃO WHITAKER INTENDED TO ASSESS THE DESIGN PARAMETERS PRACTICED BY THE PRIVATE MARKET ORIENTED TO THE ECONOMIC SECTOR OF THE POPULATION (WHICH COMPRHENDS THE POPULAR SEGMENT OF THE POPULATION FAMILY INCOME RENT FROM 3 TO 10 MINIM.WAGES – US$ 900 to 3,000 )

3. CONTEXT 1. THE NEW GUIDELINES OF THE NATIONAL HOUSING POLICY AFTER 2003 – AS A RESULT OF THE NEW NATIONAL HOUSING POLICY, LEGAL INSTRUMENTS HAVE BEEN ENACTED IN ORDER TO GUARANTEE MORE SECURITY FOR THE AGENTS OF THE HOUSING PRIVATE MARKET.

4. CONTEXT 2. THE RECENT EXPANSION OF THE HOUSING MARKET . THE FEDERAL GOVERNMENT UNDERSTOOD THAT IT WAS NECESSARY TO GUARANTEE THE EXPANSION OF THE HOUSING MARKET IN BRAZIL TOWARDS THE MEDIUM SEGMENTS OF THE POPULATION – SO THAT THE GOVERNMENT FUNDS WERE INTENDED TO THE LOWER INCOME RENT SEGMENT. YEAR 2000 THE PRIVATE HOUSING MARKET ACHIEVED ONLY 30% OF THE POPULATION IN BRAZIL – THE RICHEST SEGMENTS

5. CONTEXT 3. THE GOVERNMENT LAUNCHED MINHA CASA MINHA VIDA PROGRAM . THE FEDERAL GOVERNMENT DESIGNED THIS PROGRAM IN 2009 AS AN INSTRUMENT TO FACE THE IMPACTS OF THE INTERNATIONAL CRISIS . STIMULUS FOR THE CONSTRUCTION SECTOR IN ORDER TO PROMOTE ECONOMIC GROWTH

6. MINHA CASA MINHA VIDA PHASE 1 - GOAL TO BUILD 1 MILLION HOUSING UNITS (2009-2011) 40% PUBLIC MODALITY / 60% PRIVATE MODALITY EXPECTATIONS EXCEEDED PHASE 2 - GOAL TO BUILD 2 MILLION HOUSING UNITS (2012-2014) 60% PUBLIC MODALITY / 40% PRIVATE MODALITY

7. MINHA CASA MINHA VIDA - MODALITIES MINHA CASA MINHA VIDA PUBLIC PROMOTION – LOCAL OR STATE GOVERNMENT PROVIDE THE HOUSING UNITS AND CHOOSE THE POPULATION THAT WILL JOIN THE PROGRAM . FAMILY INCOME RENT FROM 0 TO3 M.WAGES– totally subsidized ( payment of us$ 25 or 10% of their rent during 10 years) PRIVATE PROMOTION – THE PRIVATE SECTOR ELABORATES PROJETCS TO BUILD HOUSING UNITS, AND RECEIVES THE OPERATIONAL SUPPORT OF CAIXA ECONOMICA FEDERAL (SECURITY BANK) . FAMILY INCOME RENT FROM 3 TO6 M.WAGES– partially subsidized ( depending on the income rent ) . FAMILY INCOME RENT FROM 6 TO 10 M.WAGES – reduced interest and insurance taxes, access to guarantee fund and simplified processes of approval.

8. MINHA CASA MINHA VIDA - LIMITS THE LIMIT VALUE OF THE PROPERTY TO BE FINANCED FOLLOWS REGIONAL VARIATION: > Up to US$ 83,000 - for the Federal District, state capitals, municipalities in the metropolitan areas of the states of São Paulo and Rio de Janeiro and cities with population over one million inhabitants; > Up to US $ 73,000 - for municipalities with population over 250,000 inhabitants, municipalities around the Federal District and other metropolitan areas; > Up to US $ 49,000 - for the other municipalities.

9. QUALITY X QUANTITY • DESPITE THE EUPHORIA OF THE MARKET, • POOR HOUSING AND URBAN PARAMETERS ARE BEING SPREAD • PARAMETERS PRACTICED BY THE MARKET (NOT ONLY BY MCMV) • POOR INSERTION PATTERNS OF HOUSING UNITS IN LOTS • - POOR DESIGN STANDARDS • SMALL HOUSING UNITS • DISTANT LOCATION CHOICES • URBAN SEGREGATION IN BRAZIL PRECEEDS THE RECENT STANDARDS IMPLEMENTED THROUGH THE RECENT HOUSING PRODUCTION

10. STUDY – PRODUCTION OF THE 10 BIGGEST CONSTRUCTION COMPANIES IN THE COUNTRY The insertion of garage spaces determins the disposition of housing units in their allotments (LOW DENSITIES ARE ACHIEVED) TYPE 1 TYPE 2 218 U/Ha 176 U/Ha AVERAGE DENSITY

11. ESTUDO TIPOLOGIA-DENSIDADE-IMPLANTAÇÃO TYPE 3 TYPE 4 323 U/Ha 91 U/Ha

12. OVER REPEATED DESIGN PATTERNS INDEPENDENT FORM ENVIRONMENTAL CONDITIONS 4 OR 5 FLOOR BUILDINGS BELEM

13. PORTO ALEGRE

14. BETIM

15. RECIFE

16. BELO HORIZONTE

17. SOROCABA - SP

18. PORTO ALEGRE

19. TOWER BUILDINGS SÃO PAULO

20. BELEM

21. PARNAMIRIM

22. BELO HORIZONTE SINGLE-FAMILY HOUSES ROWS OF VARIUOS UNITS MONOTONOUS DISPOSITION

23. UBERLÂNDIA

24. RIO DE JANEIRO

25. RIO DE JANEIRO

26. CAMPINAS - SP

27. COSMÓPOLIS - SP

28. JAÚ - SP

29. COSMÓPOLIS - SP

30. SMALL HOUSING UNITS MINIMUM AREA PHASE 1 - HOUSE 35 M2 - APARTMENT 42 M2 PHASE 2 - HOUSE – 39,6 M2 - APARTMENT – 45 M2

31. SMALL HOUSING UNITS • TINY KITCHENS AND WCS • THE AVERAGE AREA PRACTICED DOES NOT ALLOW THE USE OF STANDARD FURNITURE OR THE ADEQUATE CIRCULATION INSIDE ROOMS

32. NO ADEQUATE SPACE FOR CIRCULATION TINY ROOMS NO SPACE FOR STANDARD FURNITURE

33. DISTANT LOCATION CHOICES

37. ARE THERE ALTERNATIVES? • THE RESEARCH CAME TO THE CONCLUSION THAT IT IS POSSIBLE TO BUILD ALTERNATIVE PROJECTS THAT WOUL RESULT IN: • BETTER URBAN INSERTIONS, • BETTER DESIGN PATTERNS, • BETTER ARCHITECTURAL TYPES WITH MIXED USE, LARGER UNITS, DIFFERENT LANDSCAPE SOLUTIONS (WITHIN THE FINANTIAL LIMITS OF MINHA CASA MINHA VIDA)

39. LAND PRICE AND OTHER COMPONENTS

40. FINAL CONSIDERATIONS • ARE WE REPRODUCING THE URBAN INADEQUATION THAT HAS BEEN TRADIONALLY BUILT IN BRAZIL? • WHAT ARE THE LIMITS OF THE URBAN SPRAWL TAKING INTO CONSIERATION THE URBAN SUSTAINABILITY? • ARE WE REPRODUCING COMMON MISTAKES? - URBAN AND SOCIAL SEGREGATION - MONOTONOUS PERIPHERY - POOR URBAN QUALITY - POOR CONSTRUCTION QUALITY - TERRITORIES THAT WILL LEAD TO SOCIAL PROBLEMS ... DRUG TRAFFICKING, DOMESTIC VIOLENCE...

41. BOOK AVAILABLE AT: WWW.USP.BR/LABHAB THANK YOU!