The city of São Paulo, known for its social complexity, faces constant challenges in the management of its urban space, especially with regard to the requalification of historic central areas.
In this context, the City Hall established the Urban Intervention Area of the Central Sector (AIU-SCE) through Law 17,844/2022 and regulated by Decree 62,466/2023.
This urban plan represents a comprehensive strategy, replacing the former Operação Urbana Centro, with the aim of stimulating investment and revitalizing the heart of the city, which is one of the best served sectors in terms of urban infrastructure.
In this article we will explain what the AIU is, its purpose and detail the legal incentive instruments, highlighting the role of the Management Board. Enjoy reading!
What is the central sector AIU and when was it established?
The Urban Intervention Area of the Central Sector (AIU-SCE) is an ambitious urban project by the City of São Paulo, created to promote the revitalization and requalification of the city center.
Established by Law 17,844/2022 and regulated by Decree 62,466/2023, this initiative marks a new chapter in the urban development approach, aiming to replace the former Operação Urbana Centro.
With a perimeter of 2,089 hectares, the AIU-SCE covers significant areas of the urban fabric of São Paulo, including the Historic Center.
This, in turn, is comprised of the districts of República and Sé, in addition to the Metropolitan Center, which encompasses parts of the districts of Brás, Belém, Pari, Bom Retiro and Santa Cecília.
Unlike previous policies, the AIU-SCE has a particular focus on housing, with the aim of increasing the permanent resident population in the region.
This plan therefore seeks not only to revitalize the urban space, but also to transform it into a more attractive place to live, work and invest.
What is the purpose of the Central Sector AIU-SCE?
The main objective is to requalify and revitalize the center of São Paulo, transforming it into a more attractive area for housing and investments.
Through the implementation of innovative urban policies, the aim is to increase the resident population in the central region, thus encouraging the occupation of currently underutilized properties and promoting greater social, economic and cultural dynamics.
The AIU-SCE aims to create a more integrated and sustainable urban environment, where existing infrastructure is fully utilized, and which is, at the same time, inclusive and accessible to different social groups.
In addition to promoting housing, especially social housing, AIU-SCE aims to reactivate the city center’s economy by facilitating the reinsertion of underutilized properties into the market.
This is done through incentives for the requalification (retrofit) of buildings, the preservation of listed properties or the implementation of new projects.
Such measures aim not only to improve the quality of life of residents and urban aesthetics, but also to stimulate the local economy by attracting new businesses and investments.
What are the legal incentive instruments?
The main legal incentive instruments are:
- Equivalent bonus via public call;
- Incentives for transferring construction potential;
- Subsidy for retrofit;
- Real Estate Consortium;
- Expropriation via public auction;
- Zero Grant for 5 years;
- Construction potential up to 6 times the land area;
- Area well served by infrastructure.
Equivalent bonus via public call
The equivalent bonus offers a bonus to owners who allocate part of their properties to the production of Social Interest Housing (HIS), the requalification of existing buildings (retrofit) or the preservation of listed properties.
In return, they receive a declaration of additional building potential , proportional to the built area dedicated to these purposes.
This additional potential can be used by the entrepreneur himself or sold to others, thus encouraging the revitalization and efficient use of urban space.
Incentives for transferring construction potential
The AIU-SCE expands the possibility of transferring the construction potential of listed properties , making the action more attractive for recipients.
Specifically, listed properties with up to 1,000 m² of land area can transfer their construction potential, a move that benefits the vast majority of listed properties within the AIU-SCE perimeter.
Furthermore, there is an additional incentive for entrepreneurs who acquire the construction potential of at least three small listed properties, receiving an additional construction potential free of charge, ranging from 10% to 30% of the area of their land.
Retrofit subsidy
This legal instrument provides economic subsidies for the identification and requalification of buildings , making requalification in the central region more attractive.
These subsidies are mainly aimed at encouraging the renovation of properties for affordable housing, with 60% of the resources allocated to projects that benefit families with an income of up to six minimum wages.
The plan includes granting up to R$1 billion in subsidies, with the first public call announcing R$100 million available for these purposes.
Real estate consortium
The AIU-SCE allows the use of the Real Estate Consortium for vacant properties with potential for adaptation or construction for social housing use.
This model aims to reduce the housing deficit, allowing owners who are unable to invest in their properties to offer them for requalification or construction.
The City Council or interested private investors can then develop these projects, compensating the owners with real estate or urbanized units equivalent to the value of the property before the intervention.
Expropriation by public auction
As an innovative mechanism, the AIU-SCE introduces expropriation by public auction for properties that do not fulfill their social function.
This instrument serves as an additional incentive to the social function of property and as an alternative to traditional expropriation.
This incentive is provided through payment in public debt securities, facilitating the use of properties notified as failing to comply with their social function.
Zero grant for 5 years
To encourage construction and population density , AIU-SCE exempts the collection of onerous concession fees in the Historic Center Sector and in the region known as Cracolândia for five years.
Furthermore, it offers discounts on the concession in other regions within its perimeter in the first five years of validity, encouraging development and urban revitalization.
Construction potential up to 6 times the land area
This incentive allows the use of land in the AIU-SCE region to exceed the maximum limit established by the Zoning Law, reaching in some cases a utilization coefficient of up to 6 times the area of the land.
This aims to promote greater building density in selected areas, contributing to the desired urban densification.
Area well served by infrastructure
AIU-SCE highlights the center of São Paulo as a privileged area in terms of infrastructure, with a vast supply of jobs, public transport services, the presence of government agencies and a rich historical and cultural heritage.
This recognition serves as an additional incentive for investment and development in the region , underlining the importance of its revitalization for the well-being of the city as a whole.
What is the role of the Central Sector AIU Management Board?
The Management Council will be responsible for playing a crucial role in supervising and implementing the urban plan for the revitalization of downtown São Paulo.
It will be composed of 22 members, half of whom will represent the public authorities and the other half will represent civil society, including:
- Cultural NGOs;
- professional entities;
- academic entities;
- research entities linked to urban and environmental issues.
This body is responsible for ensuring transparency, democracy and effectiveness in the execution of the planned actions. In accordance with the provisions of Decree No. 62,246/2023, the council members will be elected at an assembly and will have a two-year term.
Therefore, as we can see throughout this article, AIU-SCE opens opportunities for new ventures in the central area of São Paulo. And if you want to know more about this project, contact LA Arquitetura & Engenharia.
We help you to streamline the entire process, so that you can seize the opportunity that arises right away.
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