DOWNTOWN HOUSING Sarah Johnson

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1 Sarah Johnson

2 //HISTORY & CONTEXT The roles of the market and the government in the production of housing (both in and out of the center) of São Paulo & New York seemed quite different. While New York has a history of government participation in the housing sector peaking with the production of public housing (1930 s-1970 s), São Paulo does not have a history of public investment in housing in the city center. Historically efforts to produce social housing, such as the production of public housing estates in the 1960 s and 70 s (Budds, 91), has occurred on the periphery of the city. Today New York City relies almost entirely on a market-based system with government incentives for private production of affordable housing. In São Paulo, the government has taken a stronger role in the production of affordable housing in the center. As in New York, the production of affordable housing in São Paolo is an intensely political struggle, with transitions in government frequently impacting funding streams for projects. //HISTORY & CONTEXT

3 //MARKET CONDITIONS Market conditions in downtown New York City and downtown São Paulo differ significantly. While real estate prices in New York City are some of the highest in the world, an estimated 30% of São Paulo s downtown buildings are vacant (Centro Gaspar Garcia), with many middle class families having relocated from the city to the suburbs in the 1980 s. An estimated 45,000 buildings in downtown São Paulo are vacant (Budds, 94). In contrast, only 1,723 buildings in Manhattan are vacant (Picture The Homeless). While a recent municipal campaign to reconstruct the centre city (2000) has drawn private and public sector investment, and included a broad set of goals including the planning and development of a variety of housing (Medrano, 7), recent investments in the center under a more conservative administration have reportedly focused on improvements to public spaces and efforts to attract private sector ventures at the expense of lower income residents. In the meantime housing activists in São Paulo are fighting to reclaim the right to the center of the city for lower income residents //MARKET CONDITIONS

4 //FORMAL HOUSING Private Market: Cortiços The majority of housing units accessible to lower income residents in downtown São Paulo are rented rooms called cortiços. Though they are accessible to lower income residents, they are hardly affordable. Rents can be R$500 per month or above, making cortiços more expensive per square foot than most upper middle class houses. Cortiços are similar in character to tenements; entire families share one cramped room, while bathrooms and kitchens are shared by many families. //FORMAL HOUSING Social Housing: SRO s, Rent-to-Own & Affordable Rental In recent years, beginning largely with the Mayoral term of Marta Suplicy ( ), the municipal government has provided funding for social housing downtown. These developments, which are not yet common, provide stable and affordable housing options for lower income tenants (typically those making less than three times the minimum wage). Developments ranged from SRO s with preferences for formerly homeless and elderly residents to rent to own or affordable rentals (pictured left). In all cases, the monthly payments were based on a base sum plus a percentage of income (in one case R$40 plus 10%).

5 //INFORMAL HOUSING Favelas Downtown: Vila Prudente to Avenue Paulista While Favelas are typically located on the periphery of the city, some still exist in the center. Vila Prudente is one of São Paulo s oldest favela s established in the 1950 s and home to 12,000 families. Over the years many families have gained formal land tenure and access to basic utilities, as well as invested sweat equity into communal assets. Due to Vila Prudente s proximity to the center, homes now sell for upwards of R$50,000 making it unaffordable to some São Paulo residents. At the same time, new Favelas are being settled downtown. A recent settlement of 20 dwellings on an abandoned football field adjacent to Avenida Paulista (pictured left) contains some of São Paulo s most expensive real estate. The land underlying the favela is estimated to be worth R$550 per square foot. Unlike at Vila Prudente, amenities are basic; residents obtain utilities illegally and rely on the locker rooms from the football field. Most houses are constructed out of flimsy and temporary materials.the land is publicly owned by the IPESP (Instituto de Pagamentos Especiais de São Paulo), which has reportedly brought a lawsuit against the settlers. //INFORMAL HOUSING

6 //INFORMAL HOUSING Occupations: Bella Vista and Hotel Mauá Occupations serve both political and social needs, both providing housing activists with leverage to demand the provision of additional affordable housing and meeting the housing needs of low income individuals. The warehouse in the Bella Vista neighborhood (pictured left) has been occupied for upwards of 5 years. On and off negotiations between the government and the property owner have provided no positive resolution for the residents. The property, which sits in a special zone designated for social housing, is immediately adjacent to an affordable rental project currently under construction and cortiços where residents pay high rents for small, single rooms. Hotel Mauá is an abandoned hotel occupied by 200 families on a busy commercial street immediately adjacent to the city s central train station. The hotel, which had been vacant for 17 years, was occupied in Residents have organized themselves to create community amenities, but have no guarantee of tenure. //INFORMAL HOUSING

7 <<no 340 da rua Mauá // Occupation <<Vila Prudente// Favela <<Community bulletin board at rua Mauá // Occupation //INFORMAL HOUSING <<Favela at Avenue Paulista // Favala

8 //HOUSING POLITICS Government funding of social housing has risen in recent years, particularly due to the election of Lula as President and Suplicy as Mayor of São Paulo. However, the recent transition of city hall to a more conservative administration has stalled many projects. São Vito: Brazil s Most Expensive Plaza São Vito was São Paulo s largest vertical apartment house, with 600 units and 2,400 inhabitants. São Vito sits in the city center, immediately adjacent to the Mercado Municipal. For the 74.5% of residents who worked downtown, the location was extremely convenient. The general population was lower income (61.5% of residents made less than 3 times the minimum salary) and included a mix of owners and renters (Medrano, 9-12). << Edificio São Vito About 5 years ago, residents were evicted with the promise the building would be renovated, and given interim vouchers of R$300/month (UN-Habitat, 106). Now the project is delayed, with the new more conservative administration reportedly wanting to raze the building and turn it into a plaza. Former residents, whose rent vouchers are about to expire, are scattered around the city and running out of options. //HOUSING POLITICS

9 <<Vacant building downtown invites occupation <<Elderly resident in social housing pays tribute to Lula. <<Downtown São Paulo- reconstructing the center for who? //HOUSING POLITICS

10 Sources: Budds, Jessica. Ensuring the right to the city: pro-poor housing, urban development and tenure legalization in São Paulo, Brazil. Environment & Urbanization Volume 17 No. 1 April Cimino, James. Favela nasce na região da avenida Paulista Folha de S. Paulo, 18 March Medrano, L. Urban interventions and public policies in the central area of Sao Paolo, Brazil. Architecture as an instrument of renewal in megacities. Presented at: City Futures 2009, June 4-6 Madrid Homeless People Count Vacant Properties in Manhattan. Picture the Homeless, São Paulo: A Tale of Two Cities. United Nations Human Settlements Programme (UN-HABITAT), 2010

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