MISSION OVERVIEW – International Policy Dialogue on Challenges of Slum upgrading, Sao Paulo

HOUSING POLICIES IN SAO PAULO

According to the City of Sao Paulo, World Bank assistance has a reputed track record. As we learned by interviewing Mr. Zee (WB), Sao Paulo has such a high debt that the Bank cannot work financially with the city even if they wish very much to do so.
The assistance started with a Cities Alliance pilot program in two Slum areas (2 years) and, since the beginning was emphasizing on planning methodology.
The second phase was focused on strategies for municipal a housing plan, providing analysis, studies and general support to the institutional arrangements of SEHAB, the Sao Paulo public housing company to implement social housing programs.

The housing policies of Sao Paulo Secretary of Habitat, SEHAB

SEHAB showcased a powerful example of implementing MDG priorities in the housing sector. The strategic plan for housing and Slum upgrading covered the implementation of national policies, environmental action, and the integration with other departments and enterprises. The 1.500 slums and 1.300 subdivisions are home to more than 380.000 people, with medium growth rates due to the fact that Sao Paolo is no longer a destination for rural-urban migration. The slums are mainly on public land and most dwellers already live for more than 10 years there. The Slums do have certain services (82% electricity, 60% Water/Sanitation). In respond to the demand, SEHAB and partner institutions today employ more than 200 people to go about the need of administering the informal areas.

The political priorities of upgrading are to reach large areas and avoid removal. The impact of upgrading and of the provision of land titles is growing economic wealth and increasing opportunities for the dwellers. The organization of the dwellers is relatively low, existing leaders take to voice during the process. It is supposed that the dwellers are overwhelmed by huge and immediate problems related to survival and an organization is only a second priority.

The legal instruments have raised very high expectations as they provided the main shift form informal to formal housing. The federal law in Brazil determines the municipal competence in definition and execution of urban development policies, including the application of sanctions for underutilised land and to counter speculation. Following the social function of property alleviation the results of land titling are very positive.

However, this instrument is to be handled with care and SEHAB advises not to overestimate them. Aware of the necessary transparency and communication, the processes are taking very long and still have to be proven for large scale implementations.

The social work is basic for detecting and joining forces for development. The integration is spatial and social; Slums are integrating into the city, not cities integrating into Slums. SEHAB, more than others, has to combine all technical support with social efforts, as observed during the field visits.

The planning instruments are served by modern GIS methods and land registration. The former informal areas will have advantages on a data system that is easy to update and also combines spatial to social characteristics (e.g. risk areas, materials, health, education, family profiles), enabling the municipalities to design more precise interventions and to have more transparent decision making and follow up of interventions.

Findings

Slum upgrading never happens in Isolation, and the key remains to enable poor to build, not to build “for them”

Slum upgrading is a baseball match: attach to all bases to reach the goal

Urban development provides employment, but is not necessary linked to economic growth

Urban development is not the same as city development, that refers to “center concept”

Metropolitan development is urbanization without cities and responses have to be more creative and less “centric”

Urban growth due migration happens most quickly in Africa and Asia, in Brasil growth is vegetative

Migration is slowed down in Sao Paolo, industries are leaving and schemes of employment change (more service related)

Housing needs public investment

Most dwellers buy ,they do not build houses

Key to successful development is in the hand of local expert, to be patient

The problem is the cost to protect and maintain public spaces

NGO have showcased very good projects, but they have not gone to scale

The construction and land development by “the informal private sector” is frequently more expensive than “formal” developer

Ensure the availability of public land and avoid opportunistic invasion

Land ownership is a pre-requisite for development

The titling is attractive to dwellers, but cities received it as difficult to apply. In Nigeria, people hold on land and expropriation would be conflictive

Financing schemes to receive benefit of land (mortgage) are needed

The collection of information is crucial: register when intervention is starting

Banks offer only credits for material, not for labour, which remains professionally low
Micro credits are feasible in low income groups through social networks, how to combine micro-credits with banks

Recovery is possible through fees in cooperation with service provider, e.g. water company, Sao Paolo had to offset the debt

The credit worthiness remains challenge: to educate people to maintain payment and to re-educate financial partners. Municipality often stays with the debt

UCLG welcomed the knowledge exchange in the name of cities of all sizes and can add the findings of the work in City Future:
Systematic preparation to increase administrative effectiveness is interesting for other cities. UCLG can support on transferring knowledge and findings in further discussion