Urban Planning and Land Value Capture

This case study reflects on the history and implementation of land value capture policies in the Brazilian city of Belo Horizonte, especially the use of the Outorga Onerosa do Direito de Construir (OODC), in the form of charges for construction rights beyond the usual height limitations. The text discusses the long and tumultuous journey toward its implementation which, although not essentially different from the resistance found in other Latin American cities, is especially unique due to the relationship it bears with the model of social participation instituted in the city to formulate and monitor urban policies. The study reports strategies adopted by the real estate sector, social movements, and public authorities throughout this participatory process, which led to the approval of a new Master Plan and with the regulation of the OODC and the single and unitary floor area ration (FAR) throughout the municipality. The main lessons learned from this process make it clear that the application of urban land policies presupposes a cultural change in society, since they put the idea of absolute property rights in perspective. Thus, in addition to the approval of such land policies, its maintenance will require permanent monitoring and social articulation.