Considered the fifth most populous city in the world as of 2022, São Paulo is confronted with a multitude of challenges befitting its over 22 million inhabitants. Among the numerous urban issues faced, the depopulation of the city's historic center has been a recurring topic for at least four decades, with governments announcing measures that could potentially reverse the situation. In the meantime, the same center has witnessed a rise in housing occupations in abandoned buildings, highlighting the importance of its redefinition and residential potential.
One state measure aimed at "reviving" downtown São Paulo gained prominence. The Requalifica Centro Program, announced in July 2021, established tax incentives to encourage retrofit projects in the downtown area targeting buildings within the specified perimeter and constructed up to September 1992. Some of the incentives provided include exemption from property tax (IPTU) for the first three years, issuance of the certificate of completion of work, application of progressive IPTU rates for five years, reduction to 2% of the ISS rate for services related to the redevelopment project (engineering, architecture, construction, cleaning, maintenance, environment), exemption from property transfer tax (ITBI) for properties undergoing redevelopment, exemption from municipal fees for installation and operation for five years, among others.
During the program's announcement, architect and professor Raquel Rolnik highlighted potential issues the practice could entail, like the lack of guarantees and special incentives to produce affordable housing in these buildings. In other words, "the fight for social housing on behalf of which the municipality justified the urgency and public interest of the project is absent in this law."
In 2023, marking two years since the program came into effect, São Paulo residents began to reap the benefits of the initiative. It is estimated that over the past year, the São Paulo city government authorized an average of one retrofitting project for central buildings every 18 days. Since March, 11 projects have received Requalification Permits, nine of which will have spaces designated for housing, while two will accommodate office suites and event spaces.
In theory, it seems like the perfect formula. However, in October of this year, the first property included in the Requalifica program was inaugurated. The Renata Sampaio Ferreira building is considered a modernist icon of the region, designed by architect Oswaldo Bratke and located opposite the famous Copan Building in the República neighborhood. The building remained practically abandoned for ten years, with only two tenants occupying its 12 floors.
The renovation was carried out by the construction company Planta.Inc. and the owner will lease the units of the building in partnership with another company, Tebas by Blueground, in a business model similar to Airbnb. According to the Metrópoles website, rental prices range from R$ 5,500 to R$ 20,000 for monthly leases, while short stays range from R$ 500.00 to R$ 2,000 per night. These prices are high compared to the reality of the majority of the population and serve as a demonstration of the target audience these new buildings hope to attract, highlighting the issue raised by Rolnik and endorsed by various fronts as early as 2021.
However, the narrative took a significant turn during the inauguration ceremony for the Renata Sampaio Ferreira building when the city's current mayor, Ricardo Nunes, unveiled a new incentive for downtown São Paulo retrofits. This initiative involves injecting R$ 1 billion into the Requalifica Centro program, which surpasses the initial fiscal, tax, and urban incentives. Under this initiative, the municipality will allocate funds to subsidize retrofits, signifying that the city government will directly transfer revenue to qualified companies.
The mayor's announcement made precisely at the inauguration of a building catering to a very specific audience, sparked discontent and bewilderment among the population. When confronted, Ricardo Nunes referenced the series of actions that have been undertaken in this regard, likely alluding to the renovation of the Prestes Maia Building.
This building in downtown São Paulo was occupied by a housing movement in 2002. In 2015, it was expropriated by the city government during the administration of former Mayor Fernando Haddad (PT) and transferred to the Metropolitan Housing Company (Cohab), responsible for the housing program named "Pode Entrar" (You Can Enter). However, the renovation will only accommodate 287 out of nearly 500 families who lived there, with the Front for Housing Struggle (FLM) being responsible for the selection process. Once the renovation is completed, families will have to pay installments for their properties, varying according to their income. Those earning a minimum wage (R$ 1,320) will pay 15% of their income, while those earning up to three times the minimum wage (R$ 3,960) will bear 30% of their income. Additionally, they will also be responsible for condominium fees and utility bills.
The cases of the Renata Sampaio Ferreira and Prestes Maia buildings illustrate two retrofit projects within the same context but with very different scopes, demonstrating that indeed, the mayor was correct in stating the need for a comprehensive approach to redefine downtown São Paulo. Retrofitting itself is a practice that should be encouraged, especially as it aligns with reducing greenhouse gas emissions from demolitions and new constructions. However, there is an expectation for balance in this retrofit policy, with the democratization of access also in the buildings included in the program and receiving public investments.
Navigating urban challenges in a metropolis of 22 million inhabitants is undeniably challenging. However, it appears that all solutions hinge on a shift in mindset and comprehension regarding the desired nature of the city and its intended beneficiaries. Renato Cymbalista, a professor at USP, when approached about the topic of retrofits in downtown São Paulo, cites the example of Vienna in an interview, where half of the properties belong to the state, cooperatives, or associations. Although the Austrian capital presents a glaring difference in scale compared to São Paulo, it teaches the understanding of housing as a service rather than an investment, asset construction, or commodity that can be bought and sold on the speculative market. Perhaps, this should be one of the main guidelines guiding the set of actions of all cities.
