São Paulo Announces Low Cost Housing Program with Investments of R$1 Billion

RIO DE JANEIRO, BRAZIL – The government of the state of São Paulo introduced yesterday, September 25th, the first phase of the housing program ‘Nossa Casa’ (“Our Home”), which will begin with the construction of 26,735 housing units in more than 120 municipalities in the state. The estimated investment is R$1 billion (US$250 million) to build 60 thousand units by 2022, in the form of Public-Private Partnership (PPP).

There will be 11,000 units built in 114 municipalities through ‘Nossa Casa-CDHU’, in partnership with Caixa Econômica Federal. In this category, subsidies will be granted to those with a monthly family income of up to five minimum wages. The land has already been provided by the municipalities, the projects are ready and the works should start in up to 90 days, with completion scheduled for 2021.

A further 15,735 units will be built in 24 municipalities using the ‘Nossa Casa-Apoio’ (“Our Home-Support”) model, aimed at organizations and companies. In this case, the organizations and private companies place the land at the program’s disposal and build the projects. The state government will grant subsidies of up to R$40,000 to families with an income of up to three minimum wages for the purchase of housing.

A third option of the program, ‘Nossa Casa-Preço Social’ (“Our Home-Social Price”), will make it possible to build homes with the private sector at reduced prices to serve families with incomes of up to three minimum wages. The municipalities will provide the land, which will be sold through a bidding process to the private sector. The winning companies will build the houses and will sell part of the units at low cost housing prices.

Families who are interested in housing will have to register through the program’s website and will be selected by raffle. The unit’s price was set according to the region. The social price will be R$130,000 for the capital, R$120,000 in cities of the metropolitan region, R$110,000 in interior and coastal cities with more than 250,000 inhabitants and R$100,000 in cities with fewer than 250,000 inhabitants.

Source: Agência Brasil