Public charge and private transfer of building rights in Brazil: the need for coherence in regulation and implementation
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Date
2016
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AESOP
Abstract
Urban policy instruments began to be specifically referred by Federal Law in Brazil with the National Constitution of 1988, which was followed, after twenty years of debate in Congress, by the City Statute (Federal Law 10,257/2001). This national Law came to establish urban policy principles and guidelines for municipal action, including the regulation of urban policy instruments. Among those, the Municipal Charge on Building Rights (MCBR)1 and the Transfer of Building Rights (TBR)2 were defined in general terms as instruments to be used by municipalities according to local specificities and needs, in order to contribute to the principle of fair distribution of benefits and costs from the urbanization process.
The Articles 28 to 31 of the City Statute provide the bases for the MCBR, a charge to be collected by municipalities from additional building rights over a basic or regular FAR3. Once infrastructure and urban services are provided by the public and densities depend on their availability, this charge works as a value capture tool aimed at preventing the private appropriation of land value increments that result from administrative decisions on densities allowed in each city zone. The TBR, in its turn, is defined in Article 35 of the same Law. It allows the owner of an urban property to exercise in another location, or dispose of for this purpose, the right to build that for public interest reasons cannot be used in his property.
Description
Proceedings of the IV World Planning Schools Congress, July 3-8th, 2016 : Global crisis, planning and challenges to spatial justice in the north and in the south
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