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The International Network for Urban and Regional Statistics

The International Network for Urban and Regional Statistics Standing Committee of the International Association for Official Statistics.

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The International Network for Urban and Regional Statistics

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  1. The International Network for Urban and Regional Statistics Standing Committee of the International Association for Official Statistics LOCATION SUBSIDY FOR CONSTRUCTION PROJECTS OF THE HOUSING SOLIDARITY FUND PROGRAM (SFP) OF THE MINISTRY OF HOUSING AND URBAN DEVELOPMENT – THE CASE OF SANTIAGO METROPOLITAN REGION - CHILE

  2. Contents • Location subsidy (SDL) • Requisites and beneficiaries • Territorial dimension of subsidies • Analysis and comments

  3. Objective : Characterise CNT* projects benefited by Location Subsidy during the period 2007 – 2009, according to their final location within the Santiago Metropolitan Region CNT: Construction on a new plot of land

  4. SUBSIDIO A LA LOCALIZACIÓN Location subsidy (SDL) • Is an addition to the normal governmental housing subsidy. It is destined to buying a plot of land as an incentive for a better location of new social housing projects. • The beneficiary families would be better integrated to accessible urban services. Total subsidy = Basic subsidy + SDL

  5. SUBSIDIO A LA LOCALIZACIÓN ¿How does the subsidy work? Destined to buying a new plot of land and/or improving the condition a given plot of land. • A maximum subsidy per household of US$ 8,000 to buy a plot of land; and US$ 4,000 for plot improvement. • The addition of subsidising the acquisition and the improvement of a plot of land cannot be higher than US$ 8,000 How is it applied? Fiscal valuation correction factor X Fiscal valuation where: Correction factor = 0.025 X (N° of housing units in a project) + 1.2 net plot surface . Superficie neta: superficie del terreno a construir de acuerdo a al definición utilizada para el calculo de la densidad neta definido en el la O.G.C.U. Avalúo fiscal del terreno: Valor del terreno que se detalla en el certificado fiscal

  6. REQUISITOS Y BENEFICIARIOS Beneficiaries Requisites • Cities with a population over 5,000 inhabitants • A maximum of 150 families per project • Access to public transport within 500 m • Not more than 1,000 m from education services • Not more than 2,500 m distant from a primary health service • Socially vulnerable families (Ficha de Protección Social) • Application though an EGIS (Social Real State Agent), that organises demand and designs the project • More than one household per home (Allegamiento) • Overcrowded household (Hacinamiento) • Disabilities • Old age • Other Social vulnerability

  7. BENEFICIARIOS Beneficiary families2007 - 2009 • 77 thousand beneficiary families at a national level • 28 thousand in Santiago Metropolitan Region (RMS). • 13 thousand families by means of CNT projects in RMS

  8. BENEFICIARIOS Beneficiary families according to the specific programme2007 - 2009 • 50% of the benefitted families in the RMS by means of CNT • 97% of CNT projects received SDL, reaching over 13,000 families in the region • 75% of invested SDL resources correspond to CNT projects Fuente: elaboración propia en base a datos OH-MINVU

  9. DIMENSION TERRITORIAL DEL SUBSIDIO Territorial Dimension of the Subsidy: Zones Location Subsidy benefitted families in CNT projects, according to zone within Santiago Metropolitan Region (2007) Source: Housing Solidarity Fund Data Base, 2007 • A considerable number of projects were located outside the A. Vespucio ring. • The smaller projects (lower N° of families) tend to be located within the A. Vespucio ring. • In smaller cities of the region most projects were located in their periphery.

  10. DIMENSION TERRITORIAL DEL SUBSIDIO Territorial Dimension of the Subsidy: Municipalities 2007-2009 Location subsidy financial resources Number of benefitted families • Out of the AMGS it is found, on average : • 695 families per municipality. 125.5% more than at the interior of the AMGS • US$ 3,327,200 invested, 88.1% more than within the AMGS

  11. ANALISIS Y COMENTARIOS Non proprietor families by RM zone, 2009 Source: Social Protection Form (FPS) Database 2009 Outside the AMGS there are 500% more non proprietor families than at the interior of the AMGS

  12. ANALISIS Y COMENTARIOS Resources and Beneficiary families according to zone of the RMS Average values according to the number of municipalities with projects Source : Housing Observatory – MINVU Data Base • Outside the AMGS, each municipality has received 88% more location subsidy resources. • Outside the AMGS, each municipality counted with 125% more beneficiary families. • On average, outside the AMGS each housing project included 24% more houses per project. • On average, within the AMGS, each household receives 40% more location subsidy resources. • Contrary to the situation inside the AMGS, on average, outside the AMGS the urban population is less than 71% of the total (ranging from 16 to 84%)

  13. ANALISIS Y COMENTARIOS SFP allocation y city type Discussion on possible indicators/further analysis: • Impact on minor and intermediate cities • Absorption of urban population in predominantly rural localities (less than 71% urban) • Functional dependence of minor cities to Santiago Metropolitan Area • The subsidy is not proportional to the size of the cities (200 UF do not represent the same benefit in all cities) • Differential behaviour of the subsidy according to local land markets Source: SII Data Base 2002

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