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Fit-for-Purpose, Private-Sector Led Land Regularization and Financing of Informal Settlements in Brazil

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Listed:
  • Malcolm Childress

    (Global Land Alliance, Washington, DC 20005, USA)

  • Selina Carter

    (Global Land Alliance, Washington, DC 20005, USA)

  • Edgard Barki

    (Fundação Getulio Vargas, São Paulo 01332-000, Brazil)

Abstract

This paper aims to analyze the financial and operational approach to land regularization and financing used in Brazil by an innovative private social enterprise in order to demonstrate that the approach widens the concept fit-for-purpose land regularization to include fit-for-purpose land financing, with relevance for wider efforts in informal settlement regularization and upgrading. In this approach, the enterprise acts as a coordinator and broker to organize the residents of informal settlements to regularize their settlements by negotiating buyouts of the underlying private owners at discounted values, handling titling and registration of the occupants, and coordinating with municipal governments to provide infrastructure. The analysis of parcel-level repayment and price data provides evidence of the sustainability of the business model and increase of property values of the regularized parcels. The results presented from the enterprise’s own repayment data demonstrate that under (non-pandemic) historical conditions residents are largely able to pay an affordable monthly payment over 7–10 years to the enterprise for the service to purchase the plots and maintain the enterprise. In operation since 2001, the enterprise has regularized over 20,000 parcels in more than 30 settlements, primarily in the cities of Sao Paolo and Curitiba in Brazil. The approach suggests that it could be widely replicable and add to the set of options for regularizing informal settlements, especially when purchase of private land is required.

Suggested Citation

  • Malcolm Childress & Selina Carter & Edgard Barki, 2021. "Fit-for-Purpose, Private-Sector Led Land Regularization and Financing of Informal Settlements in Brazil," Land, MDPI, vol. 10(8), pages 1-17, July.
  • Handle: RePEc:gam:jlands:v:10:y:2021:i:8:p:797-:d:604636
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    References listed on IDEAS

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    1. Marie Huchzermeyer, 2009. "The struggle for in situ upgrading of informal settlements: a reflection on cases in Gauteng," Development Southern Africa, Taylor & Francis Journals, vol. 26(1), pages 59-73.
    2. Bernard Nzau & Claudia Trillo, 2020. "Affordable Housing Provision in Informal Settlements through Land Value Capture and Inclusionary Housing," Sustainability, MDPI, vol. 12(15), pages 1-40, July.
    3. Tellman, Beth & Eakin, Hallie & Janssen, Marco A. & de Alba, Felipe & Turner II, B.L., 2021. "The role of institutional entrepreneurs and informal land transactions in Mexico City’s urban expansion," World Development, Elsevier, vol. 140(C).
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    Cited by:

    1. Stig Enemark & Robin McLaren & Christiaan Lemmen, 2021. "Fit-for-Purpose Land Administration—Providing Secure Land Rights at Scale," Land, MDPI, vol. 10(9), pages 1-12, September.

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