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critical instruments for urban policy towards an inclusive city City Statute (Estatuto da Cidade): The City Statute of 2001 regulates articles of the Brazilian Constitution pertaining to urban policy. Its guidelines and stipulations include various tools that have increased the power of policy makers and urban planners to implement concepts implied in the ‘right to the city’ and to create inclusive, less socially divided or exclusionary cities. In particular, the explicit demand on the social function of property and the use of urban property for the common good has been internationally applauded as progressive.

Strategic Master Plan (for São Paulo): Adopted by municipal law 14.430/2002, this is the master plan of urban development in São Paulo, incorporating guidelines and instruments of urban policy established in the City Statute. Selected municipalities are required by law to produce master plans for urban development, and approximately 2,000 municipalities around the country were given until the year 2006 to finalise their plans and submit them to the federal government. They are required to define their use of the instruments included in the City Statute; to attend to numerous social aspects of urban development, and the use and occupation of land; and, inter alia, establish ZEIS, improve infrastructure for informal settlements, and the like. The master plans provide blueprints of what cities intend to achieve and present their vision for social development. Urban Operations (Operacoes Urbanas): These are government-led multidimensional urban interventions

to revitalize large areas of the city that also involve value capture, increasing both financial and social benefits for the private and public sectors. Urban operations are an urban policy instrument established in the City Statute; nine urban operations are included within the new Strategic Master Plan of São Paulo to promote development coordinated by the municipality ‘with the participation of owners, residents and private investors’. The desired results of urban operations are structural urban transformations, social improvements and environmental valorization: mainly enlarging public spaces, organizing the road system, implementing housing programmes of social interest and creating infrastructure improvements. Infrastructure projects include roads, bridges, malls and business centres. The public sector management of these projects is intended to incorporate mechanisms to mitigate typical antipoor exclusionary forces as land values rise. Large urban operations have been carried out in Faria Lima, Agua Branca, Rio Verde-Jacu and Agua Espraiada.

CEPAC (Certificados de Potencial Aditional de Construcao): CEPACs, or ‘Certificates of Additional Construction Potential’, are part of the financing mechanism for urban operations. They are a new value-capture instrument offered by the government to private developers to raise money for municipal public works by selling building rights. At a price, developers can purchase certificates for permission to increase the quantity or density of construction on a designated area of land beyond what would normally be allowed, thereby increasing their value on the plot and raising revenues for the government to use specifically on social housing and pro-poor infrastructure in the same area of urban operations. CEPACs are sold by auction and on the stock market, and the market itself prices the asset. They have been sold successfully, for example, in Aguas Espraiadas and Faria Lima, raising large revenues for the municipality. ZEIS (Zona Especial de Interesse Social): The City Statute formalised ‘Zones of Special Social Interest’ to assist the development of inclusive urban housing and zoning policies. ZEIS specifically defends the right to housing of slum dwellers within an area of urban operation. Some Brazilian municipalities have applied ZEIS principles since the 1980s. Even if land prices in a given area are very high, the developer must build pro-poor housing in proportions established in accordance with the type of ZEIS. ZEIS are defined in areas with favelas, cortiços and self-constructed houses, as well as areas with empty or underutilized urban land or buildings. Highly polemical and controversial, the establishment of 964 ZEIS areas in the first 2002 Strategic Master Plan for São Paulo was considered a victory for activists and residents of favelas, cortiços and selfconstructed houses. ZEIS include special conditions to legalize informal settlements without having to comply with a multitude of urban requirements that apply to the remaining areas of the city.

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Sao Paulo; A tale of two cities  

UN-HABITAT’s new Cities and Citizens series examines urban inequality in the developing world through in-depth analysis of intracity data de...

Sao Paulo; A tale of two cities  

UN-HABITAT’s new Cities and Citizens series examines urban inequality in the developing world through in-depth analysis of intracity data de...

Profile for unhabitat
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