Antonio Azuela, a fellow of the Institute for Social Research at Mexico’s National University, holds law degrees from the Universidad Iberoamericana (Mexico) and the University of Warwick (England), as well as a Ph.D. in sociology from Mexico’s National University (UNAM). Since the late 1970s, he has been engaged in research and teaching on urban and environmental law from a sociolegal perspective. His book Visionarios y pragmáticos: Una aproximación sociológica al derecho ambiental (Visionaries and Pragmatists: A Sociological Approach to Environmental Law), Mexico: UNAM, 2006, is a sociological reconstruction of his experience as General Attorney for the Environment in the Mexican Federal Government, from 1994 to 2000. He has recently edited the book Expropiación y conflicto social en cinco metrópolis latinoamericanas (Expropriations and Social Conflict in Five Latin American Metropolises), published by UNAM and the Lincoln Institute of Land Policy in 2013.

Land Lines: How did you get involved with the Lincoln Institute of Land Policy?

Antonio Azuela: In 1991, I met several of the Institute’s officers while they were on an exploratory trip to Mexico. I stayed in touch, because I was interested in the Institute’s approach to urban policy. My relationship grew stronger in 1998 through a meeting in Cairo organized by the International Research Group on Law and Urban Space (IRGLUS), where the Institute expressed interest in a sociolegal approach to urban land problems. In 2000, I was honored with an invitation to join the Institute’s Board of Directors. Since then, I have been in permanent contact with the Lincoln Institute staff and programs.

Land Lines: Why has the public acquisition of land become such a critical issue, particularly in Latin America?

Antonio Azuela: Expropriation, also known as eminent domain (i.e., the compulsory acquisition of land by the state) is an important subject all over the world, because it is a way of procuring land for public urban projects. But in Latin America it is even more critical, due to the weak nature of the state regarding urban matters. Before the democratic transition in the region, it was easier for governments to procure land using mechanisms that would be questionable in a democracy. But the transition has strengthened the judicial branch, which is generally unsympathetic to government interventions in the marketplace. Now, it’s increasingly possible for private owners to interfere with the public acquisition of land in the region (with the notable exception of Colombia, where a wide-ranging coalition of professionals, judges, and social organizations supports the doctrine of the social function of property). This trend can be seen, for example, in the exorbitant compensation that some courts have granted for land expropriations in Mexico City and São Paulo.

Land Lines: What are the main watershed issues?

Antonio Azuela: The first is the adoption of economic policies that advocate a lesser role for the state. The second pertains to the legal status of property rights. When constitutional reforms empower judges to limit the power of eminent domain, this restriction is not necessarily bad, because it can lead to higher quality public administration, but in the short term it has interfered with government power to purchase urban land for public projects. There are two notable exceptions: In Brazil and Colombia, constitutional reforms have established urban policies inspired by ideas of social justice—though only in Colombia do we find a new generation of judges who act in accordance with these principles. In Brazil, the courts are dominated by the classic liberal view of private property, which interferes with the ability to implement the social function of property—an idea that has been circulating in Latin America for almost a century.

Land Lines: Many jurisdictions prefer to acquire land in the open market instead of using instruments such as eminent domain.

Antonio Azuela: Eminent domain should not be the first option for acquiring land. The challenge is for governments to regulate a variety of instruments in order to achieve a general goal, which is to reduce the land component of the total cost of urban development. The use of eminent domain must be guaranteed by a strong legal framework that can establish an adequate balance between the power of the state and the power of the landowners, and it should be the last option when acquiring land for public urban projects.

The big problem is the cost of land, but the mechanisms of government intervention can inflate prices. For example, if the use of eminent domain is not expected to increase land value, and the judges determine it’s the right approach, it can have a positive impact on land markets. At the very least, we can expect from governments that their acquisition of land does not raise prices.

Land Lines: What are the main outcomes of your research on the use of eminent domain for urban development in the region?

Antonio Azuela: While there is a general trend to strengthen property rights, which interferes with the power of eminent domain, this trend shows several variations, depending on the relationship between the judicial and executive branches in the post-authoritarian governments of the region. The process of institutional change depends less on global trends than on domestic and even local forces, as certain cities follow different paths from others in the same country. Even if all local governments were to adopt the same strategy, the courts in one region will protect landowners more than the courts in other regions. The metropolitan area of Buenos Aires, for example, illustrates how the institutional system of eminent domain is not homogeneous, even within the same metropolitan area. In the Autonomous City of Buenos Aires, for example, people who live in informal settlements (villas miseria) have gone to court and prevented evictions. In the Province of Buenos Aires, however, the political climate is such that there is no threat of eviction; eminent domain is used to ensure that settlers can remain where they are.

Another important lesson is that there is no authentic dialog in Latin America on the significance of eminent domain or on the various ways the courts have tackled the dilemmas it presents. While the constitutional thinking in the region is very rich in ideas about certain legal issues, such as the rights of indigenous people and the elderly, urban policies—in particular, eminent domain—have not triggered deep discussions among legal scholars. Unfortunately, these issues seem to be viewed as exceptions, despite the enormous number of people who live (suffering or enjoying) in large urban centers.

Land Lines: Are eminent domain compensations arbitrary or unfair? If so, for whom?

Antonio Azuela: Inadequate compensation is, no doubt, one of the great challenges for the future development of eminent domain as a land policy instrument. In some cases, governments may take advantage of the powerlessness of certain social groups and offer them ridiculously low compensation for their land or homes. In other cases, however, the landowner’s economic power and influence can result in exorbitant compensations. Beyond these two extremes, in which the affected landowner is either very vulnerable or very powerful, it is difficult to discern a dominant trend.

A precise answer to your question would require a market study of a large number of eminent domain cases in order to determine if the compensation is high or low when compared to preestablished criteria. The existing research has shown, however, that in general the courts do not possess clear and widely shared criteria for determining whether compensations are fair. Moreover, courts lack the capacity to understand what is at stake during the process of urban transformation in which eminent domain is used. Consider, for instance, the case of a prominent family from Ecuador that received a very high compensation for the expropriation of agricultural land on the periphery of Quito. What is remarkable is that this case was decided by the Inter-American Court of Human Rights, and it was obvious that the court did not establish clear criteria to determine the amount of compensation; it simply averaged the assessments submitted by the different parties. The compensation was the highest ever awarded by this high court, which was created to address violations of human rights committed by dictatorships yet ended up benefiting private property owners at the expense of the public interest. The fact that this case did not create a scandal among constitutionalists in the region indicates how marginalized urban legal issues are in Latin America.

Land Lines: What are some changing trends you have observed?

Antonio Azuela: I observe, with some optimism, that many courts and local governments in the region are undergoing a learning process, trying not to repeat prior judicial mistakes. Unfortunately, these lessons rarely transcend the affected local area and become incorporated into the common regional juridical knowledge.

Land Lines: What sort of education or training would you recommend?

Antonio Azuela: Logically, we need to intensify exchanges among different disciplines and countries, placing the courts at the center of the discussion, as they will make the final decisions. These decisions should express the best possible synthesis of a body of knowledge that we need to build around the urban dynamics of the region. In the contact we have had with the courts, with the support of the Lincoln Institute, we have found that once a dialog is established, judges understand the need to learn more in order to grasp the effects of their decisions. In other words, while the courts do not seem to show a great interest in urban problems, as evidenced by the routine attitude shown in their day-to-day decisions, they can see new perspectives for their own professional development in the context of a critical analysis of urban issues.

Land Lines: What are the critical issues that need to be investigated more deeply? What is it that we do not yet know?

Antonio Azuela: We should try to understand the logic of court decisions in the region. We frequently make a simplistic interpretation of the actions taken by the courts, because the media tend to amplify the worst cases. However, many judges make an effort to find the best possible solution to each case. Under what conditions do they operate? One of the challenges of investigating these issues in Latin America is to understand the real world in which these decisions are made, apart from the common but always relevant themes of corruption and incompetence. We need to analyze statistical information to observe general trends, combined with an ethnographic approach to the functioning of the courts. Only then will we be able to understand what needs to be reformed in order to improve the court performance in urban conflicts. While it is important to ascertain who is being favored by the court decisions—which can be done by analyzing the contents of judicial decisions—we need better understanding of the conditions under which these decisions are made. In order to do that, we need to get closer to the courts themselves.

Liz Wood quería comprar una casa. Corría el año 2006, había estado alquilando por una década y sus pagos mensuales le estaban resultando muy altos. Tenía 43 años de edad y un empleo estable como educadora familiar en el que ganaba US$34.000 al año más beneficios. No quería nada lujoso; simplemente un lugar donde pudiera “crear amor y tener estabilidad”. No quería vivir más allá de sus recursos.

De todas maneras, las cuentas no le cuadraban. Wood vive en Duvall, Washington, un pueblo de aproximadamente 7.500 habitantes al pie de las Montañas Cascade. Duvall, inmerso en un bosque frondoso, se encuentra a alrededor de 48 kilómetros de Seattle y apenas 13 kilómetros de la ciudad de Redmond, sede de Microsoft. La mediana de ingresos en Duvall es casi el doble de la del estado de Washington en general, y las viviendas de la zona son caras. En 2010, la mediana del valor de las viviendas ocupadas en Duvall era de US$373.500, en comparación con US$262.100 del estado, según la Oficina del Censo de los EE.UU.

Entre las pocas opciones que tenía, Wood se decidió finalmente por una casa prefabricada de segunda mano de US$55.000 en Duvall Riverside Village, una comunidad de dos hectáreas con 25 viviendas prefabricadas, ubicada en el centro de Duvall. “Vivir aquí es increíble”, declaró. “Mi propiedad da sobre el río, así que cuando salgo de mi casa veo agua, pinos y un sendero por el cual puedo caminar hasta el pueblo vecino. Me despierto por la mañana escuchando a los pájaros. Conozco a todos mis vecinos; estoy conectada con mi comunidad. Estoy a una cuadra de la comisaría. Me siento segura”.

Pero aun así, su situación era complicada. Wood era dueña de su casa, pero no del terreno donde estaba ubicada. Alquilaba el terreno por US$450 mensuales, más el pago del agua y los demás servicios públicos, como el resto de los residentes de Duvall Riverside Village. Por lo tanto, Wood y sus vecinos estaban básicamente a merced del dueño de la propiedad, y no gozaban de la autonomía y seguridad legal asociadas con los modelos de propiedad de vivienda más tradicionales.

El propietario prohibía la construcción de garajes, limitando las opciones de almacenamiento de los residentes. Cobraba US$25 al mes por cada automóvil o persona adulta adicional que no se hubiera registrado en el momento de la mudanza. Cobraba US$5 al mes por cada mascota y los perros no podían quedar sueltos en ningún momento. Había que pagar una cuota mensual de US$5 por cada dos metros cúbicos de leña extra, que Wood necesitaba para alimentar su estufa. Aunque el propietario había contratado un empleado de mantenimiento, no había instalado alumbrado exterior ni mantenía las calles de la comunidad, que estaban llenas de baches y grietas.

En 2012, Wood y sus vecinos recibieron un aviso por escrito de que el propietario estaba vendiendo el suelo. A diferencia de otros propietarios, que preferían vender su terreno a un emprendedor inmobiliario, este propietario estaba dispuesto a vendérselo a los residentes. Había aceptado organizar una reunión entre los inquilinos, un corredor de bienes raíces y el Centro de Desarrollo Cooperativo del Noroeste (Northwest Cooperative Development Center), una organización sin fines de lucro que apoya a las cooperativas. Las partes consideraron la posibilidad de establecer una cooperativa de residentes sin fines de lucro para comprar la propiedad. De esa manera podrían conservar el suelo para las casas prefabricadas, seguir viviendo en comunidad y administrar colectivamente un lugar seguro, económico y de alta calidad.

Los residentes votaron a favor de esta propuesta. El propietario tenía dos demandas. Quería vender su propiedad a un valor justo de mercado, y quería completar la venta antes del fin del año. Estaban ya en agosto. Tenían cinco meses.

Además de colaborar con el Centro de Desarrollo Cooperativo del Noroeste, los residentes también comenzaron a trabajar con ROC USA, una organización sin fines de lucro de Nueva Hampshire que ofrece a los residentes de comunidades de casas prefabricadas una combinación de asistencia técnica y financiamiento asequible para comprar su suelo alquilado cuando se pone a la venta. Desde su fundación en 2008, ROC USA ha facilitado con éxito 80 transacciones de este tipo en todo el país y consiguió préstamos de financiamiento por más de 175 millones de dólares.

ROC USA trabaja con una red de ocho filiales regionales, una de las cuales es el Centro de Desarrollo Cooperativo del Noroeste. En Duvall, las organizaciones sin fines de lucro trabajaron con los residentes para hacer un análisis económico de la oferta y confirmar que era una buena oportunidad para que los residentes fueran propietarios de la comunidad. A continuación, las organizaciones ayudaron a los residentes a contratar a un abogado independiente y establecer su cooperativa, que funcionaría como una democracia, en la que los residentes elegirían a sus propios dirigentes. ROC USA ayudó a los residentes a contratar a un ingeniero independiente para realizar la diligencia debida de la propiedad; a conseguir financiamiento a través de la subsidiaria de préstamo de ROC USA, llamada ROC USA Capital; a comprar la propiedad y realizar las reparaciones indispensables; y a organizar la transferencia inmobiliaria.

El 27 de diciembre de ese año, la nueva cooperativa compró Duvall Riverside Village con US$1,3 millones en financiamiento de ROC USA Capital, y Wood y los demás propietarios pasaron a controlar sus propias viviendas y a preservar de forma permanente 25 viviendas económicas en un pueblo donde la oferta de este tipo de viviendas es escasa.

Los residentes continuaron pagando US$450 mensuales para alquilar el terreno, pero ahora votan para establecer las reglas de la comunidad, y usan el pago del alquiler para realizar mejoras y pagar la hipoteca, los impuestos y los gastos de comunidad.

“Ahora puedes tener un garaje si quieres”, explica Wood, que es la presidente de la cooperativa de residentes de Duvall y miembro de la junta directiva de ROC USA. “E invertimos US$35.000 para arreglar las calles. Ya no tenemos que vivir con temor, así que la gente está dispuesta a invertir en sus casas. Tenemos reuniones anuales para votar sobre proyectos. Si en el presupuesto hay cosas que no necesitamos, podemos reducir nuestro alquiler mensual. En última instancia, controlamos nuestro propio destino”.

Después de completar la venta, ROC USA y el Centro de Desarrollo Cooperativo del Noroeste han seguido proporcionando a los residentes asistencia técnica para garantizar el buen funcionamiento de la comunidad.

“Si simplemente nos hubieran prestado dinero y nos hubieran dicho: ‘Estas son las pautas, y esto es lo que tienen que hacer’, hubiéramos fracasado”, explica Wood. “Pero son un recurso constante. Nos ayudan en situaciones difíciles o cuando no sabemos hacer algo de forma legal. Nuestra meta es independizarnos y poder administrar nuestra comunidad como un negocio. Pague sus cuentas y su casa puede quedarse donde está. Punto. Para siempre”.

Beneficios

Más de 18 millones de estadounidenses viven en casas prefabricadas, lo cual representa el 5 por ciento del inventario de viviendas en las áreas metropolitanas de los Estados Unidos, y un 15 por ciento en las comunidades rurales. Su calidad tiene variaciones significativas. Aproximadamente el 25 por ciento de las casas prefabricadas son las casas rodantes frágiles desvencijadas de la década de 1960 y comienzos de la de 1970, fabricadas antes de que el gobierno federal introdujera controles de calidad en 1976. El 75 por ciento restante cumple con las normas federales, y muchas son viviendas agradables y térmicamente eficientes, que a simple vista no se pueden distinguir de las viviendas tradicionales construidas sobre el terreno. Si bien las casas prefabricadas han sido despreciadas durante mucho tiempo como el último recurso para vivienda, los modelos actuales son robustos, eficientes y atractivos, con el potencial de aliviar la carencia de viviendas seguras y económicas en el país.

Las casas prefabricadas modernas cuestan aproximadamente la mitad que las construidas sobre el terreno, y se pueden construir cinco veces más rápido, convirtiéndose en una opción realmente viable para los consumidores de bajos ingresos. El proceso de producción es menos costoso y los modelos que cumplen con las normas Energy Star del gobierno federal ofrecen a los propietarios un importante ahorro de energía. Y son duraderas. Mientras que las casas prefabricadas construidas antes de las regulaciones de 1976 fueron diseñadas para ser portátiles, como vehículos recreativos, los modelos modernos están construidos con materiales más fuertes y diseñados para ser permanentes. Las casas prefabricadas de hoy pueden sustentarse en los mismos tipos de cimientos que se usarían para una estructura construida sobre el terreno, ofreciendo flexibilidad para usarlas en una amplia gama de geografías y ambientes.

“El inventario de casas prefabricadas es un componente fundamental de las viviendas económicas del país”, dice George McCarthy, presidente y Director Ejecutivo del Instituto Lincoln de Políticas de Suelo. “Supera fácilmente dos o tres veces el inventario de viviendas subsidiadas en casi todos los mercados”.

Las casas prefabricadas son más baratas de producir que las casas construidas sobre el terreno, debido a su proceso de manufactura. Andrea Levere, presidente de Corporation for Enterprise Development, ha escrito en The Huffington Post que “el término ‘casa prefabricada’ tiene menos que ver con la calidad que con el proceso de producción, que deriva de las cadenas de montaje creadas por Henry Ford. Este modelo permite construir las casas prefabricadas en un ambiente de trabajo más controlado, con costos más predecibles, mayor eficiencia y menos residuos” (Levere 2013).

En 2013, el costo de una nueva casa prefabricada térmicamente eficiente era de US$64.000, en comparación con los US$324.500 de una nueva casa construida sobre el terreno, según el Censo de los Estados Unidos, si bien el precio de la segunda incluye el suelo. Pero incluso cuando se descuenta el costo del suelo, las casas prefabricadas siguen siendo significativamente más baratas, con un promedio de US$4 por metro cuadrado, en comparación con US$8,7 por metro cuadrado para las casas construidas sobre el terreno. Y no son viviendas subsidiadas, lo cual es una ventaja cuando se tiene en cuenta la oferta extremadamente escasa de viviendas subsidiadas en comparación con la demanda. En la actualidad, sólo una de cuatro familias que reúne los requisitos debido a sus bajos ingresos recibe una vivienda subsidiada, de acuerdo a la Comisión Bipartidista de Políticas, dejando al 75 por ciento restante en necesidad de una alternativa económica sin subsidiar. Al ayudar a cubrir ese vacío, las casas prefabricadas pueden aliviar algo esta demanda de casas subsidiadas que los gobiernos estatales y el gobierno federal tienen tanta dificultad para ofrecer debido a la reducción de sus presupuestos. “La mayoría de las familias que viven en casas prefabricadas serían elegibles para viviendas subsidiadas, pero en su lugar eligen esta opción más barata y sin subsidio”, dice McCarthy.

El inventario es también muy versátil, señala McCarthy, citando el papel que las casas prefabricadas cumplieron en el periodo inmediatamente posterior al Huracán Sandy. “Los trabajadores de emergencia instalaron 17 casas prefabricadas en Nueva Jersey a pocas semanas del huracán. Estas eran casas permanentes para inquilinos desplazados, no los problemáticos ‘tráileres Katrina’. Y lo hicieron antes de que la mayoría de las organizaciones elaborara siquiera un plan de vivienda. Esto es una muestra de la eficiencia y flexibilidad de las casas prefabricadas. Los plazos de producción son aproximadamente 80 por ciento más cortos que los de las casas construidas sobre el terreno, convirtiéndolas en la mejor opción de vivienda como respuesta a las catástrofes”.

De todas maneras, las casas prefabricadas con frecuencia tienen mala reputación, debido en gran medida a la percepción equivocada de que los modelos de hoy en día son los mismos que los de las primeras generaciones de casas móviles, antes de la introducción de normas de control de calidad por el Departamento de Vivienda y Desarrollo Urbano en 1976. Hoy en día hay aproximadamente 2 millones de casas construidas antes de 1976; muchas de ellas apenas se sostienen erguidas, y alojan a la población más vulnerable, como los ancianos y discapacitados. Si bien el inventario de viviendas anteriores a 1976 no tiene casi relación con sus contrapartes de la actualidad, estas viviendas más viejas y deterioradas dominan la percepción pública de las casas prefabricadas en los Estados Unidos.

La reputación del inventario de estas viviendas es aún menor por las vulnerabilidades que tienen los residentes que no son dueños del terreno donde viven. Aproximadamente 3 millones de personas viven en una de las 50.000 comunidades de viviendas prefabricadas del país, mientras que otros 3 millones alquilan una casa prefabricada en terrenos privados. Hay comunidades de casas prefabricadas en todos los estados del país. Como en el caso de Duvall Riverside Village, muchas se encuentran en terrenos privilegiados, y los propietarios de esos terrenos reciben habitualmente ofertas de emprendedores inmobiliarios.

Los promotores de casas prefabricadas y de su viabilidad como alternativa de vivienda económica se han enfocado en tres áreas fundamentales de innovación: conservar los parques de casas móviles; reemplazar las unidades anteriores a 1976 por casas térmicamente eficientes; y aumentar el acceso a financiamiento asequible para los compradores potenciales, ya que es prácticamente inaccesible en el mercado actual, y es imperativo para acumular un patrimonio neto y preservar el valor de reventa de la casa.

Conservación de las comunidades de casas prefabricadas

La conversión de una comunidad de casas prefabricadas de propiedad privada a una cooperativa de residentes, como se hizo en Duvall Riverside Village, no es frecuente. Por cada comunidad que se ofrece a la venta y se preserva satisfactoriamente como vivienda económica, hay muchas más que se terminan vendiendo para realizar emprendimientos inmobiliarios, desplazando a los residentes, quienes quizás no tengan ninguna otra buena alternativa.

“No es tan sencillo como sólo mover la casa”, dice Ishbel Dickens, presidente de la Asociación Nacional de Propietarios de Casas Prefabricadas. “Primero está la cuestión de si la casa se puede mover. Puede ser demasiado vieja o inestable para moverse. Y aunque se pueda mover, esta operación es cara, y es muy difícil encontrar un espacio en otra comunidad. En la mayoría de los casos, cuando un parque de casas cierra, los residentes probablemente van a perder la casa y todos sus recursos. Lo más probable es que nunca puedan ser propietarios de una vivienda. Probablemente terminarán en una lista de viviendas subsidiadas, o acabarán viviendo en la calle”.

Hasta cierto punto, es un accidente histórico que tantos parques de casas móviles ocupen terrenos valiosos, dice Paul Bradley, presidente de ROC USA. En las décadas de 1950 y 1960, los estadounidenses comenzaron a comprar casas rodantes, en parte debido al surgimiento de una cultura de recreación al aire libre, y en parte debido a que las fábricas comenzaron a producirlas para utilizar la capacidad de manufactura excedente después de la Segunda Guerra Mundial, haciéndolas atractivas y asequibles. A medida que las unidades se fueron haciendo más populares, pasaron de ser estructuras transitorias a permanentes, y la gente comenzó a agregar garajes provisionales para sus automóviles y solarios. En ese momento, los planificadores urbanos aceptaron la evolución hacia la permanencia. Desde su punto de vista, la mayoría de las casa rodantes se encontraban en terrenos periféricos que no se usaban para emprendimientos inmobiliarios. ¿Qué tenía de malo dejar estas casas móviles por un tiempo hasta que las ciudades se expandieran hasta llegar allí, y en ese momento desarrollar el suelo?

“Estas comunidades originales se construyeron con un plan en mente para eliminarlas”, dice Bradley. “En ese entonces, nadie contempló las consecuencias de crear un inventario de viviendas donde los propietarios no podían controlar el suelo donde se encontraban. Nadie anticipó que estas comunidades se llenarían de propietarios de bajos y moderados ingresos, quienes invertían su dinero para comprar estas casas y tenían muy pocas alternativas viables. Y hoy en día todavía estamos tratando de resolver este problema. Esta falta de control del suelo significa que los propietarios de las viviendas viven con una profunda sensación de inseguridad, y de que es absurdo efectuar inversiones en su vivienda, porque nunca las van a poder recuperar. ¿Cuál es la consecuencia para un propietario que no puede invertir racionalmente en su casa? ¿Qué significa esto para el inventario de viviendas? ¿Para los barrios?”

Las políticas de corto plazo para el uso del suelo no son el único problema para preservar las comunidades de casas prefabricadas. Otro obstáculo igualmente oneroso es la falta de protección legal para los residentes. En 34 estados y el Distrito de Columbia, el propietario puede vender el terreno sin dar a los residentes la oportunidad de comprarlo. De hecho, en la mayoría de los estados el propietario no tiene siquiera que notificar a los residentes que la comunidad está a la venta; puede esperar hasta que la propiedad se haya vendido antes de informar a los residentes de la transacción, dejándolos de golpe en una situación muy frágil. Incluso los 16 estados que exigen al propietario la notificación previa a la comunidad de la venta de viviendas prefabricadas no brindan necesariamente las protecciones que requieren los inquilinos. “En la mayoría de los estados con notificación previa, hay tantas limitaciones en los requerimientos de la notificación que pocas veces sirve de algo a los residentes”, dice Carolyn Carter, directora de promoción en el Centro Nacional de Derecho del Consumidor (National Consumer Law Center).

Para proteger mejor a los promotores respaldan reformas legislativas a las leyes estatales e incentivos tributarios para que los propietarios vendan el suelo a los residentes. La estrategia más efectiva consiste en promulgar leyes estatales que requieren al dueño que dé un aviso anticipado de la venta a los residentes (idealmente de 60 días) junto con la oportunidad de comprar la propiedad, señala Carter. Según ella, hay seis estados que tienen leyes que “funcionan en la práctica, y brindan oportunidades reales para que los residentes compren sus comunidades”: Nueva Hampshire, Massachusetts, Rhode Island, Florida, Vermont y Delaware. Dice también que Oregón promulgó una legislación prometedora en enero de 2015. “En estos estados con avisos efectivos y leyes que brindan la oportunidad de comprar, está tomando fuerza el que los residentes se conviertan en propietarios”, explica Carter.

Aproximadamente el 46 por ciento de las 80 comunidades respaldadas por ROC USA se encuentra en Nueva Hampshire o Massachusetts, dos estados pequeños con algunas de las protecciones más efectivas del país para los residentes. Hay 89 cooperativas de residentes adicionales en Nueva Hampshire anteriores al lanzamiento de ROC USA.

Para comprender el valor de las leyes de protección firmes para los residentes, basta con contar la historia de Ryder Woods, un parque de 174 casas móviles en Milford, Connecticut, a 18 kilómetros al sur de New Haven, pegado a una carretera principal. Connecticut es uno de 19 estados que ofrecen incentivos tributarios o brindan a los residentes “algunas” protecciones cuando se vende la comunidad, aunque también presenta “importantes vacíos”, según Carter. En 1998, el dueño de Ryder Woods vendió su propiedad a emprendedores inmobiliarios. Informó a los residentes por medio de avisos de desalojo, en contravención de las leyes estatales, que le exigían no sólo dar un aviso por adelantado de la venta pendiente sino también ofrecerles la oportunidad de ser los primeros en comprar el suelo. Ryder Woods tenía una asociación de propietarios activa y rápidamente se organizaron protestas, peticiones y campañas ante la legislatura estatal para cancelar la venta. Finalmente, los medios de comunicación se hicieron cargo de la historia, y una abogada de Milford ofreció sus servicios de forma voluntaria para ayudarlos. A medida que profundizaba en el caso, se dio cuenta de que la ley estaba del lado de los residentes, y que la comunidad necesitaba más respaldo legal que el que ella podía ofrecer por sí sola. Pidió ayuda a un amigo y colega, socio de una importante compañía de Hartford, que aceptó tomar el caso pro bono y asignó la tarea a un equipo de abogados. El caso finalizó en un juicio y en última instancia llegó hasta la corte suprema estatal. El comprador original, que no estaba interesado en este embrollo legal, vendió la propiedad a un segundo emprendedor.

Cuatro años después de la venta original, el tribunal falló a favor de los residentes. En un pacto sin precedentes, y como parte del acuerdo, el segundo emprendedor compró un nuevo terreno a un kilómetro y medio de la parcela original y reconstruyó completamente allí la comunidad. El emprendedor compró 174 casas móviles nuevas y se las vendió a los residentes a un precio significativamente reducido, con hipotecas más favorables que cualquier otro financiamiento convencional del mercado. Construyó un centro comunitario y un estanque que completó con cisnes. Y como parte del acuerdo dio a los residentes la oportunidad de formar una cooperativa y comprar el terreno, lo cual hicieron en 2009 con un financiamiento de compra de US$5,4 millones de ROC USA Capital. La escritura de compra se firmó en las oficinas de la mencionada compañía de Hartford, la cual siguió prestando sus servicios de forma voluntaria a los residentes hasta que se completó la venta. Hoy, en el suelo que ocupaba la comunidad original de Ryder Woods, hay una tienda de Walmart.

“A veces, cuando recordamos lo que pasó, pensamos que fue una locura. Contratamos un autobús, fuimos a Hartford, hablamos con la legislatura, y luchamos. Nos juntamos y ganamos contra dos emprendedores multimillonarios”, explica Lynn Nugent, de 68 años de edad, vendedora a tiempo parcial en una tienda de Sears, y una de los residentes que ayudó a organizar la campaña junto con su marido, cerrajero jubilado. “Yo siempre digo: Antes pertenecíamos a otra persona; ahora nos pertenecemos a nosotros mismos”.

Mejor acceso a casas prefabricadas económicas y de calidad

A diferencia de los residentes de Ryder Woods, muchos propietarios de casas prefabricadas tienen problemas para conseguir una unidad de calidad con un financiamiento asequible. De nuevo, el principal responsable es la legislación. Según la ley federal, las casas prefabricadas se consideran una propiedad personal, como un automóvil o una embarcación, y no una propiedad inmueble como las casas tradicionales. Por lo tanto, los compradores no pueden acceder a préstamos hipotecarios. En cambio, el financiamiento se realiza por medio de préstamos personales. Estos préstamos son más caros que las hipotecas, con un promedio de tasas de interés 50 a 500 puntos básicos mayor, y con menores protecciones al consumidor. Más del 70 por ciento de los préstamos para la compra de casas prefabricadas es de este tipo, considerado un sustituto de productos subprime.

“Esta situación de pertenecer a un segundo nivel es una de las mayores limitaciones para aumentar el inventario de casas prefabricadas permanentemente asequibles”, dice McCarthy. “Es un obstáculo al financiamiento de las casas, incrementando su costo y reduciendo el potencial de acumulación de patrimonio neto, porque reduce la demanda efectiva de unidades existentes”.

Si bien la solución ideal sería cambiar las leyes federales de la titulación, no es probable que ocurra. En cambio, Next Step, una organización sin fines de lucro de Kentucky, ha establecido el concepto de “Viviendas Prefabricadas Hechas Correctamente” (Manufactured Housing Done Right o MHDR)”. Esta estrategia innovadora pone casas prefabricadas asequibles de alta calidad —junto con el financiamiento correspondiente— a disposición de consumidores de ingresos bajos a moderados, por medio de una combinación de casas térmicamente eficientes, educación a los compradores y financiamiento barato. Funciona de la siguiente manera.

Primero, Next Step brinda a los compradores de bajos ingresos acceso a casas prefabricadas de alta calidad. La organización creó una cartera de modelos sólidos y asequibles. Cada casa de Next Step cumple o excede las normas Energy Star, reduciendo tanto los costos de los servicios públicos para el propietario como la huella medioambiental. De acuerdo a Next Step, las pruebas han demostrado que estas casas son un 30 por ciento más eficientes que una casa básica que cumple con el código de edificación, y 10 a 15 por ciento más eficiente que una casa Energy Star básica. En promedio, esto genera un ahorro de energía de US$1.800 al año por cada casa móvil anterior a 1976 reemplazada, y US$360 al año por cada casa nueva establecida.

Además, las casas de Next Step están “diseñadas para garantizar que sean económicas al tiempo que cumplen con las normas de calidad”. Se instalan sobre cimientos permanentes, proporcionando un mayor soporte estructural contra el viento y reduciendo los problemas de asentamiento. Las casas tienen pisos y aislamiento de alta calidad, lo cual ayuda a aumentar su durabilidad y reducir los gastos de energía. Y como el problema principal de los cimientos es el agua, las casas de Next Step tienen protecciones adicionales contra la humedad.

Mejor acceso a financiamiento sostenible

Next Step también asegura a los compradores de vivienda un financiamiento seguro, sostenible y económico. “Uno de los problemas de esta industria es que los mercados de capital no participan de forma importante”, explica Stacey Epperson, Directora Ejecutiva de Next Step. “No hay un mercado secundario significativo, de manera que hay muy pocos prestamistas en el mercado y muy pocas opciones para los compradores. Nuestra solución es preparar a nuestros prestatarios para que sean propietarios, y después conseguirles buenos préstamos”.

Next Step trabaja con una combinación de prestamistas con y sin fines de lucro, aprobados por la organización, que proporcionan un financiamiento seguro a precios razonables. Como contrapartida, Next Step reduce el riesgo de los prestamistas. Las casas están diseñadas para cumplir con los requisitos de los prestamistas, y los compradores reciben capacitación financiera integral para que puedan tener éxito como compradores. Por lo tanto, los compradores de casas de Next Step no sólo obtienen una mejor hipoteca inicial, sino que tienen la capacidad para acumular patrimonio neto y obtener un buen precio de reventa cuando decidan vender su casa.

Además, cada casa de Next Step se instala sobre un cimiento permanente para que el propietario pueda cumplir con los requisitos de ciertos programas hipotecarios con garantía gubernamental, que son menos onerosos que un préstamo personal. Next Step estima que ha ahorrado a sus 173 propietarios aproximadamente US$16,1 millones en pagos de interés.

“En estos momentos, cerca del 75 por ciento del financiamiento de casas prefabricadas se hace con préstamos personales. Pero el 70 por ciento de casas nuevas prefabricadas se instala en suelos privados donde, en muchos casos, la casa se podría colocar sobre un cimiento permanente, y el dueño podría obtener una hipoteca de largo plazo con una baja tasa de interés”, dice Epperson.

El modelo de MHDR es innovador en parte porque es escalable. Next Step capacita y depende de una red de organizaciones miembros sin fines de lucro para implementar el modelo en sus comunidades respectivas. Next Step vende casas a sus miembros a precios competitivos, y después las organizaciones miembros supervisan el proceso de identificar y educar a los compradores, ayudando a conseguir el préstamo y administrando la instalación.

“En el modelo tradicional de la industria, no había manera de que una organización sin fines de lucro pudiera comprar una casa prefabricada a precios de mayorista. Esto es lo que hemos diseñado, y como resultado podemos ofrecer una vivienda mucho más económica que si la organización sin fines de lucro o el propietario tratara de comprarlas por sí mismos”, explica Kevin Clayton, presidente y Director Ejecutivo de Clayton Homes, uno de los productores más grandes de casas prefabricadas del país, y uno de los proveedores de largo plazo de Next Step.

“El programa Next Step funciona porque prepara a la gente para tener éxito”, dice Clayton. “Next Step les ofrece asesoramiento para ser propietarios y les brinda apoyo si tienen problemas económicos en el futuro. Pueden comprar su casa por mucho menos dinero, acumular patrimonio neto y pagar una cuota mensual baja por su préstamo y sus costos de energía”.

Cyndee Curtis, una propietaria de Next Step, está de acuerdo. Curtis tenía 27 años de edad, era soltera y estaba embarazada cuando compró una casa móvil usada modelo Fleetwood de 1971 por US$5.000 en 2001. La colocó en un lote de su propiedad en las afueras de Great Falls, Montana.

“No tenía dinero, no tenía un título universitario, y no tenía opciones”, dice Curtis. “El viejo tanque séptico de acero tenía agujeros por el óxido, era como una bomba de tiempo. La alfombra estaba completamente gastada, el linóleo debajo de la alfombra tenía agujeros de quemaduras, y el cielorraso tenía fugas donde se había colocado una extensión de la casa. Todos los años compraba libros de construcción, iba a Home Depot y preguntaba cómo arreglar esa fuga. Y todos los años me encontraba en la situación de arreglarla sola. Había moho en el umbral de la puerta debido a esa fuga, y tenía un recién nacido viviendo en la casa”.

En 2005, Curtis volvió a la universidad por dos años, obtuvo su título de enfermera y comenzó a trabajar como enfermera práctica registrada, ganando US$28.500 por año. “Ahora que estaba ganando un sueldo decente, podía explorar mis opciones”, dijo Curtis, madre soltera de dos hijos. “Quería conseguir un lugar donde mis hijos pudieran crecer con orgullo, y aprovechar el lote al máximo”.

Pero su historial de crédito no era bueno, y finalmente recaló en NeighborWorks Montana, un miembro sin fines de lucro de Next Step, que le informó sobre el programa de Next Step. En los dos años y medio siguientes, Curtis trabajó con el personal de NeighborWorks Montana para reparar su historial de crédito. Con su ayuda, consiguió una hipoteca y compró una casa de Next Step por US$102.000, que incluía no sólo la casa sino también la extracción, eliminación y recambio de su viejo sistema séptico. Como la casa de Next Step está instalada sobre un cimiento permanente que reúne ciertas calificaciones, y debido a haberse mejorado el historial de crédito, los ingresos y las condiciones de vivienda de Curtis, pudo conseguir una hipoteca del programa de Desarrollo Rural del Departamento de Agricultura de los EE.UU., mucho menos onerosa que los préstamos personales comunes. Además, mientras que la casa móvil anterior de Curtis tenía un título equivalente a un automóvil, su casa de Next Step tiene una escritura similar a la de una casa construida sobre el terreno. Por lo tanto, un futuro comprador también estará en condiciones de solicitar una hipoteca tradicional.

Curtis dice que su casa de Next Step le ha proporcionado ahorros de energía significativos. “Tengo 40 metros cuadrados más que antes. Antes tenía un baño; ahora tengo dos. Y sin embargo, mis gastos de gas y electricidad se han reducido en dos tercios”.

Dice además: “Mi casa es mil por ciento mejor que donde vivía antes. Si una persona entra a mi casa, no se da cuenta de que es prefabricada. Tiene lindas puertas, con paredes texturizadas. Se parece a cualquier otra casa nueva donde uno quisiera vivir. A veces la gente cree que tiene que sufrir con una vivienda en malas condiciones. Yo sé lo que es vivir así, y les quiero decir que si trabajan con dedicación pueden mejorar su vida y la de su familia”

Loren Berlin es escritora y consultora de comunicaciones del área metropolitana de Chicago.

Referencias

Levere, Andrea. 2013. “Hurricane Sandy and the Merits of Manufactured Housing.” Huffington Post. 8 de enero. http://www.huffingtonpost.com/andrea-levere/hurricane-sandy-manufactured-housing_b_2426797.html

This issue of Land Lines highlights many aspects of the Institute’s international education program. We are engaged with colleagues around the world who share our interests in land and tax policy issues, which are often the most critical issues facing developing and transition countries. Policy makers, academics and citizens look to the Lincoln Institute for guidance and training on both the policy and practice of land use planning and development and the valuation and taxation of land and buildings.

However, I believe our international program can also provide important lessons for U.S. policy makers. For example, the participatión en plusvalías in Colombia is an effort to capture for public benefit the land value increments that result from public actions, such as infrastructure investment. The fairness of this policy seems very persuasive, and the Colombian effort to implement a practical instrument to capture this value can provide important insights.

Over the past six years, most of the Institute’s international work has been in Latin America and the Caribbean. Extensive networks of colleagues help us clarify the issues, identify partners, convene appropriate audiences and develop relevant pedagogical materials that supplement our basic curriculum. In learning from them we have been instrumental in fostering the debate on land and tax policy and have had a real impact in the region.

The Institute is also actively engaged with colleagues facing the challenges of implementing new tax policies in South Africa and Eastern Europe. The editors of a new Lincoln Institute book on property taxation in South Africa are using that volume in a series of seminars and workshops with municipal officials this spring, thus providing direct input to legislation now being debated in that country. Another recently published book by Institute faculty offers a comparative analysis of property taxation in six Central and Eastern European countries whose economies are in transition from a centralized to a market-based system.

The Institute also has a 30-year relationship with the Republic of China, in conjunction with the International Center for Land Policy Studies and Training, and we are beginning a new program in the People’s Republic of China through the Ministry of Land and Resources with Beijing and Renmin universities and the Chinese Academy of Sciences.

On a sad note, the Institute, Brazil and the world mourn the loss of Mayor Celso Daniel of Santo Andre, a city near São Paulo. He was tragically assassinated in January. Daniel had been a regular faculty member in our courses in Brazil and throughout Latin America. He was a progressive mayor and leader of the Workers Party in Brazil, and in 2000 he was re-elected for the third time with over 70 percent of the votes cast. He was a wonderful person and a close friend who will be missed.

In these turbulent times in so many countries worldwide, we will continue to reach out to those who are taking leadership roles in forging new alliances within their cities and regions to develop the most appropriate land use and taxation policies and practices.

The urban landscape typical of many small and medium-sized Italian cities is filled with historical richness but also with more recent incoherent and contradictory development patterns. As a result, planners are actively adopting new ideas and theories about urban planning and are studying policies and practices about open space from colleagues in other countries.

The concept of quality of life is a common theme in European planning programs seeking to improve the image and functionality of neighborhoods. This idea normally represents a complex set of values to describe socio-economic conditions, but it can also be a useful instrument to set policies, implement strategies, improve landscapes and preserve open spaces. As the quality of life in many Italian cities has improved over the past ten years, attention to the needs of urban settlements has shifted from the central historical districts to the peripheries. Smaller suburban and rural communities now are demanding better living conditions and enhanced local identity through broad-based citizen participation in urban planning and design projects.

England, France and the United States, in particular, provide inspiration to Italian planners and public officials concerned about how to better integrate urban planning and the natural landscape. The loss of what had been an important cultural tradition in Italy has resulted in a more simplified and standardized urban architectural language and a lack of consideration for open space as either a valuable natural resource or an opportunity for economic and cultural growth.

The European Union (EU) is also influencing important reforms in many aspects of governance and public administration. For example, Italy’s regions, which have long been the dominant level of local government, are managing their territories with more sophisticated planning techniques based on the principles of sustainable development. At the same time, recently passed national fiscal and land taxation reforms are helping the municipalities create new resources and policies for housing rehabilitation and for public services and infrastructure, such as schools, parks and sports facilities. For example, the Regional Government of Tuscany, through its 1995 Urban Planning and Development Act, has begun a number of institutional and administrative changes, including new planning tools and public grants that have encouraged urban regeneration projects and private-public partnerships to support their costs.

The Center for Urban Research (CRU) of the Department of Architecture at the University of Ferrara has been involved in many projects promoted by both the regional and the national governments. Most address both training programs for public officials and private professionals and initiatives to disseminate “best practices” in urban planning and land use. In the last few years, the Center has consulted with many municipalities, including Ferrara in the Emilia-Romagna region and Massa Marittima in Tuscany. While recognizing the different histories and needs of these two cities, the Center is helping their municipal authorities find new opportunities for economic and social development and for enhancing their quality of life.

Ferrara

Located between Venice and Bologna in the Po Valley close to the river delta, Ferrara currently has about 120,000 inhabitants. The city’s main development can be dated to the medieval period, but important transformations were introduced during the Renaissance by the Duke d’Este. Ferrara’s distinctive network of streets, squares, gardens and buildings owe their design to the Duke, who in 1492 implemented the so-called “Addizione Erculea,” which can be considered the first modern urban plan in Europe.

The basic traits of the urban fabric have not changed much since then. The historical center, enclosed inside a system of walls, is still well preserved, and bicycles and pedestrians still outnumber cars. During the winter the fog often softens the buildings, giving the city a magical appearance, and the pace of life slows down as in ancient times. Ferrara also has strong traditions with agriculture and water, including the Po River, the delta and lagoons along the coast, and the extensive network of drainage and irrigation canals.

The city’s beauty and sense of magic have influenced artists since the Renaissance, and Ferrara is home to one of the oldest and finest Italian universities, which is small but exerts an influential role in city life. At present, most jobs in the district are connected with government functions, education, research and design, medical services, agriculture-related industries and tourism. Ferrara’s relative isolation with respect to the Italian “grand tour” has enabled the city to develop balanced cultural tourism policies over the years.

The Barco, a public park designed for the Duke d’Este as a private hunting area, offers the city an interesting opportunity to link urban planning and open space development. This semi-rural landscape is enclosed by the town walls, the Po River and a large industrial petrol-chemical factory. Supported by a special regional grant for urban rehabilitation, CRU is beginning research and planning for this project, which will also involve private sector contributions to help realize this recreational and open space resource for the city.

Another important local government goal is to use the urban environment and surrounding landscape as elements to improve economic growth. The project involves extending the traditional idea of cultural tourism beyond the historic city to include a network of small rural communities. Visitors to Ferrara and the Po River Delta Park will thus have the opportunity to discover ancient villas, marvelous natural landscapes and archeological settlements, as well as inns, restaurants and other amenities throughout the region. At the same time, young people who do not want traditional jobs in farming and fishing will be able to find different employment opportunities and more reasons to stay in their towns. To accomplish this goal, the project is using a variety of planning strategies, including some EU measures that support economic regeneration through training courses and start-up enterprises.

Foreseeable constraints on the success of this project may come from some local residents who consider agriculture their only possible economic resource, a mentality strongly rooted in history. From the Renaissance until World War Two, people from other, poorer regions of Italy were brought to the Po valley to transform the wetlands into agricultural fields. Many of the original workers have become owners of small and mid-sized farms, and they fear the loss of their rights and traditions, even though the farm produce is of poor quality and it is very expensive to maintain flood controls over the fields. Winning the trust of both urban and rural residents is a challenge that will require collaboration to increase the quality of life of residents throughout the region.

Massa Marittima

Massa Marittima is a small city in Tuscany with a population of about 10,000, sixty percent of whom live in small outlying towns. It also is the capital of the Colline Metallifere (Metal Hills) district, where for almost four thousand years silver, copper, and iron mines have operated continuously. Mining started in the Bronze Age and continued throughout the Etruscan, Roman, and medieval eras, through the Siena domination and the Medici and Lorraine eras, until the present generation of large industrial corporations. Populonia, one of the most important Etruscan industrial centers, is twenty miles from Massa Marittima, and archeological remains are found near the steel center of Piombino.

The free commune of Massa Marittima passed the oldest known mining laws in the Western world at the beginning of the fourteenth century. The natural environment surrounding the city still bears the signs of this economic history. There are large forests, which once produced timber for the mines and fuel for the furnaces, and the countryside is only partially cultivated. A less attractive sign of this heritage are the highly polluting mine waste sites.

Massa Marittima experienced a severe economic and identity crisis when the last operating mine closed ten years ago. The local community was forced to make two major decisions. First, it had to change from being a specialized economy based on difficult but secure jobs and dependence on the mining company, along with a very protective welfare system, to becoming a diversified, dynamic and flexible economy where individual enterprise is central. Second, the residents had to accept tourism as the new main source of employment to take advantage of the most important local resources: the region’s cultural heritage and its natural environment.

As in the case of Ferrara, the relative isolation and the late emergence of a tourism-based economy helped Massa Marittima work out more balanced strategies and policies for its future. In this case the opportunity was offered by the national ministries of Heritage and Environmental Policies to develop a national park for the Colline Metallifere district. The Massa Marittima city government asked the CRU to research this program using national and EU plans and grants. The core concept is an open-air museum of local history, which could help preserve the natural environment and also create new jobs for the young people, who have few employment alternatives.

One of the most important tasks in managing the new national park is to create a regional network of economic activities, facilities and public services related to both cultural tourism and the concept of environmentally sustainable development, based on EU economic measures. By sharing these resources, the towns can reduce local competition and maximize the benefits to all residents. The core of the CRU’s proposal is to create new opportunities for cooperation among different levels of public administration and public-private partnerships to promote and finance projects of public interest, such as infrastructure, sports facilities, urban and rural parks, and other resources. A final decision on a national grant to fund the Massa Marittima project is expected in March from the Ministry of Public Works.

These two case studies represent the kinds of complex planning problems that are on the agendas of many local governments throughout Italy. Learning from the best practices and examples of other countries is one of the methods that Italian planners and researchers are using to implement innovative approaches to planning the future of Italy’s historic landscape.

____________ Francesca Leder is professor of urban theories in the Department of Architecture at the University of Ferrara. She was a visiting fellow of the Lincoln Institute during the fall of 1999 to study American planning practices regarding urban parks and open space.

June 22, 1998, saw an event that would have been improbable only a short while ago-developers, public officials and environmentalists gathered in Newark’s Ironbound neighborhood to announce the opening of a new $4.5 million state-of-the-art compressed gas packaging facility on an old brownfield site. The facility, owned by Welco Gases Corp., will provide industrial and specialty gases to the welding, medical and research markets in New York and New Jersey. It demonstrates how redevelopment of brownfield sites has been revolutionized, at least in some places.

With legislation passed last January, New Jersey is one of the latest states to enact environmental laws intended to bring companies and investors into the redevelopment arena by offering them new assurances, incentives and assistance. While the site on Newark’s Avenue P may seem an obvious choice for redevelopment-close to rail, air and sea facilities and in the middle of a burgeoning metropolitan region with almost 20 million inhabitants and a half trillion dollar economy-its history of abandonment demonstrates how complicated redevelopment of contaminated sites has become.

The Welco project was one of four sites highlighted during a conference on Land, Capital and Community: Elements of Brownfield and Vacant Land Redevelopment cosponsored by the Lincoln Institute and the Regional Plan Association (RPA) last May. The conference goal, to identify the critical elements to successful brownfield and vacant land redevelopment, was achieved by visiting projects in various stages of redevelopment in Newark and Elizabeth, New Jersey. By examining different strategies for attracting private investment and public involvement, the conference focused attention on the basic components needed for any state or local redevelopment initiative.

In keynote remarks New Jersey Governor Christine Todd Whitman discussed RPA’s Third Regional Plan (1) and how many aspects of its vision are incorporated in the New Jersey State Development and Redevelopment Plan, a central piece of her current legislative agenda. In particular, she mentioned the state’s role in promoting the redevelopment of brownfield and vacant urban sites through planning and expedited permitting.

Governor Whitman cited the City of Long Branch, where a private organization prepared a master plan that was pre-approved by the Department of Environmental Protection (NJ DEP) as meeting the requirements of the Coastal Areas Facility Review Act (CAFRA). This pre-approval (which took three years of negotiation with NJ DEP) ensures that any development project approved by the city automatically receives coastal area regulation approval as well. In an urban community that had seen a decade without a single real estate transaction in its downtown, developer interest in Long Branch has surged due to the promise of streamlined CAFRA applications. While other issues also contributed to the city’s success, such as the active involvement of the private sector and the quality of the master plan devised by Thompson Design Group, this example demonstrates that predictability is a vital component to any urban economic development strategy.

Another perspective was presented by Dr. Tomas Grohé who spoke about the Emscher Park International Building Exhibition, a redevelopment of brownfield and vacant sites in the heavily settled North Rhine/Westfalia region of Germany. The Emscher project is using a regional approach to identify remedies for communities and ecosystems damaged by decades of industrial activity. Through jury selection processes and extensive community involvement, the program is implementing restorative projects including housing, new industrial and commercial business parks, and river and forest restoration. This approach is different in many respects from the United States model of market-driven projects, but it also manages to include public/private partnerships, infrastructure investments, and other familiar components.

Tiers of Redevelopment Potential

For the purposes of the public policy discussions at the conference, brownfield and vacant sites were categorized into three categories:

• tier one: sites that pose some contamination issues, but are economically viable development projects.
• tier two: sites that would be attractive but have higher contamination risks or less marketability, thus requiring some incentives for redevelopment.
• tier three: sites with high environmental risks that do not hold economic potential even if cleaned, due to poor location, lack of access or unclear reuse potential.

Many of the tier one sites in the region are being developed and do not require strategic planning. However, an important policy issue regarding these sites is that since their redevelopment does not require public incentives any available subsidies should be focused on other sites. Furthermore, their remediation and redevelopment should be consistent with the surrounding community’s zoning and planning.

The tier two sites hold the potential to move forward under market conditions, if the right level of incentives-tax abatements, remediation reimbursement, public assistance-can be provided. Making these sites attractive for private investment should be the primary objective of financial incentives, essentially bringing them into the tier one category. Once in that category, remediation and redevelopment plans should again be consistent with the surrounding community’s zoning and planning.

The tier three sites require substantial public investment. To create a regional strategy for brownfield redevelopment, it is not sufficient to focus solely on sites with significant economic return. Tier three sites may, by their location in less-advantaged neighborhoods, their lack of access or other circumstances, justify considerable public or philanthropic involvement. Public policy and the majority of public investment dollars must concentrate on remediation and redevelopment of sites that pose health risks and deter economic development in lower-income communities.

Two panel discussions explored incentives to encourage redevelopment projects. The first focused on incentives that can make tier two sites attractive for private investment, such as tax abatements, infrastructure investments or remediation reimbursement. These techniques are essential to bring private market forces into the brownfield redevelopment arena. Panelists talked about the kinds of regulatory and financial mechanisms required to make marginal sites attractive to private investors who would be willing to remediate and redevelop contaminated or vacant land.

The second panel discussed tier three sites that would require greater public or community involvement. Just because some brownfield or vacant land sites may be risky investments does not mean they should be left out of regional redevelopment strategies. Techniques to focus on these sites include involvement of a community development corporation, a broader regional approach, environmental justice advocacy, and public investment on a federal, state or local level. Panelists shared examples of successful brownfield redevelopment as a community revitalization technique and outlined the actions necessary to spur these transformations.

Incentives and Planning Strategies

Tax Abatements. Tax abatements can be an important technique to help cover the cost of redeveloping a vacant site, but their implementation raises issues of planning and prioritization. New Jersey has a recently amended tax abatement law that creates Environmental Opportunity Zones (EOZs) where developers pay a reduced property tax rate for 10 to 15 years to help them recover the costs of remediation. While no communities are yet implementing the EOZ, participants discussed the particular types of projects that would most benefit from the incentive, and how municipalities should focus the program only to projects that really need such significant advantages.

Tax Increment Financing. Infrastructure may pose significant impediments to redevelopment projects, particularly when an entire neighborhood has been in decline for many years. For example, the Chicago metropolitan area has successfully implemented tax increment financing mechanisms to provide infrastructure for brownfield and vacant land redevelopment sites.

Site Valuation. Many brownfield sites become public property through involuntary tax foreclosure or other processes. To return these sites to productive use, municipalities often try to encourage private investment and economic development. However, real estate appraisers have difficulty quantifying the value of property where the cost of cleanup remains unknown, thus complicating the process of returning land to private hands.

Insurance Policies. Insurance packages can provide broad benefits to encourage the redevelopment of brownfield sites, but they need to become better understood and more widely used. Provided by the private sector, these tools are readily available to sellers, buyers and lenders involved in the redevelopment of brownfields. Participants discussed the new products now available for indemnification and cited examples where these products could reduce the need for public assistance.

Community Participation. In many instances, a community-based organization can play an important role in identifying sites and implementing a community-driven remediation and redevelopment proposal. A case example in Trenton, New Jersey, showed how community advocacy and working with local government helped identify funding and develop innovative techniques to remediate a vacant lot in a residential neighborhood.

Advocacy Planning. Issues of advocacy planning such as environmental justice can change the entire dynamic of a site redevelopment program. In the case of brownfield sites, a community may feel it has been taken advantage of once already, by the polluter, and may approach new proposals with some hesitancy. How can environmental justice advocacy be targeted to promote redevelopment projects that are beneficial to communities? What types of projects can combine the effectiveness of community development corporation models, and yet emulate the scope and ambition of the European example?

Conclusions

Following the panel discussions, participants debated the merits of different approaches to brownfield redevelopment and identified five critical components: sureness of the process; flexibility of public agencies; effective local planning; political leadership and support; and involvement of the entire community.

Some participants felt that many of the case examples did not take advantage of the full range of state or local assistance packages. They suggested that public policy analysis should consider ways to incorporate environmental laws, community development and business interests into an understanding of why brownfield redevelopment leaders do not seem to be more aware of existing programs and incentives.

What is the final or crucial element that pushes a redevelopment project such as the Welco Gases site over apparent obstacles to success? While the participants, representing real estate interests, community organizations and local governments, surely benefited from discussing and learning about the programs and incentives used in various case examples, in the end no one could identify a magic bullet to brownfield redevelopment.

Thomas K. Wright, director of the New Jersey office of the Regional Plan Association, organized the conference described above and heads up RPA’s brownfield redevelopment programs. Ann M. Davlin, RPA program analyst, provided research assistance.

1. In February 1996 Regional Plan Association released A REGION AT RISK, RPA’s Third Regional Plan for the New York-New Jersey-Connecticut Metropolitan Region. The plan, its policy and investment recommendations are based on an in-depth analysis of the rapid changes affecting the region’s economy, environmental systems and social equity: the 3 E’s.

Lincoln Institute Publications on Brownfields and Vacant Land

J. Thomas Black, Model Solutions to Revitalize Urban Industrial Areas, Land Lines, September 1997.

Donald T. Iannone, Redeveloping Urban Brownfields, Land Lines, November 1995.

Barry Wood, Vacant Land in Europe, 1998. Working Paper.

James G. Wright, Risks and Rewards of Brownfield Redevelopment, 1997. Policy Focus Report.

Una versión más actualizada de este artículo está disponible como parte del capítulo 5 del libro Perspectivas urbanas: Temas críticos en políticas de suelo de América Latina.

El Instituto Lincoln está colaborando en Argentina con la ciudad de Córdoba en un proyecto de gran importancia para cambiar las formas de abordar la planificación física de la ciudad, así como los instrumentos que se usan para lograrla. Córdoba representa un caso particularmente interesante por su ubicación estratégica en el centro del área de desarrollo del Mercosur.

La primera fase del proyecto fue un seminario llevado a cabo el pasado abril titulado “Hacia una gestión urbana integrada: Implementación de un plan estratégico para la ciudad de Córdoba”, cuyo objetivo principal fue congregar a los “actores” principales en Córdoba para analizar y debatir las metas de planificación y los instrumentos en el contexto de desarrollos nuevos en la gestión urbana.

El seminario contó con las ponencias de expertos internacionales y discusiones entre funcionarios municipales, promotores inmobiliarios, intereses comerciales y de negocios, organizaciones no gubernamentales y profesionales del urbanismo. El papel del Instituto Lincoln fue de gran importancia ya que facilitó un foro para que los participantes locales se reunieran por primera vez para hablar de dificultades urbanísticas y problemas de desarrollo, y para dar inicio al proceso de establecer políticas de administración y procedimientos nuevos.

De las discusiones surgieron tres temas principales. El primero, tuvo que ver con decidir el orden de prioridad de la tierra a ser urbanizada, con un interés particular en el acceso equitativo a la tierra, infraestructura y vivienda para los sectores populares, así como mecanismos apropiados para llevar a cabo una planificación urbana integrada a nivel regional. El segundo tema, estuvo enfocado en el impacto ambiental y fiscal de los grandes establecimientos comerciales en estructuras urbanas existentes, distritos históricos y barrios residenciales. El tercer tema se concentró en varios actores y sectores involucrados en el desarrollo industrial de Córdoba, prestando atención a la distribución de la industria, las limitaciones de infraestructura y los costos sociales y ambientales.

Además de dar a los participantes cordobeses una perspectiva amplia sobre problemas de gestión urbana en otras ciudades, el seminario generó dos puntos de importancia: 1) que la planificación para el desarrollo no sólo se trata de regulación o de control del uso de la tierra, sino que las políticas tributarias y fiscales afectan con igual importancia los valores de la tierra; y 2) que los funcionarios locales deben aprender a evaluar los costos y beneficios de los proyectos urbanísticos para poder tener relaciones comerciales efectivas con promotores inmobiliarios del sector privado.

El seminario ya ha tenido impactos específicos en actividades comerciales de trabajo conjunto en el centro histórico y en programas de gestión mejorados para proporcionar una infraestructura y servicios nuevos al mismo tiempo que se reducen los déficits. Además, el programa animó a los participantes a reconocer la importancia de la planificación estratégica a largo plazo para trazar las indicaciones generales sobre cambios de política y para comprender los efectos de tipos particulares de desarrollo en el medio físico y social.

El Instituto Lincoln continúa trabajando con funcionarios municipales para ayudar a desarrollar nuevos paradigmas de gestión que puedan sostener alianzas público-privadas, así como mejores técnicas de análisis y planificación. Los programas de seguimiento ayudarán a gestores de políticas y promotores inmobiliarios privados (que operan tanto en mercados formales como informales) a comprender mejor el funcionamiento de los mercados de tierra urbanos y las consecuencias de cambios de políticas para el desarrollo urbano.

El próximo curso sobre “Comportamiento del mercado inmobiliario en Cordoba: Implicaciones para la estructura urbana” explorará investigaciones sobre los mercados formales en Córdoba, haciendo énfasis en los efectos de las políticas económicas y las intervenciones del gobierno. A este curso lo seguirá un seminario regional donde la experiencia se compartirá con los participantes de por lo menos otros tres países. Simultáneamente, el Instituto Lincoln está desarrollando junto con funcionarios de la ciudad de Córdoba un programa de entrenamiento dirigido a un amplio espectro de funcionarios locales, regionales y promotores inmobiliarios, que se concentra en la administración general, la planificación urbana y la preparación e implementación de proyectos.

Douglas Keare es docente visitante del Instituto Lincoln. Tiene una amplia experiencia en planificación estratégica para ciudades grandes en países en desarrollo a través de investigaciones previas y dirección de proyectos en el Banco Mundial y el Instituto para el Desarrollo Internacional de la Universidad de Harvard. Ricardo Vanella es director del Departamento Desarrollo Económico de la ciudad de Córdoba.

William Vickrey died on October 11, three days after the announcement of his being awarded the Nobel Prize in Economics, while on his way to the Lincoln Institute for the annual research conference of the Committee on Taxation, Resources and Economic Development (TRED).

TRED meetings have been sponsored by the Institute for 20 years, and Bill Vickrey was at every one of those meetings. Indeed, his connection with TRED goes back even further, for he was one of the committee’s founding members more than 35 years ago. TRED began in discussions among academic economists who were interested in contemporary applications of the ideas of Henry George and were also concerned with land and natural resources. Over the years, TRED’s membership expanded to include public finance and urban economists interested in the use of land and economic phenomena related to how things are arranged over space.

Bill Vickrey was the ultimate intellectual sparkplug of TRED from the beginning. His wonderful inventiveness and irreverence came out in inspired, seemingly off-the-cuff interventions in the discussion, some of which have changed thinking about economics and economic policy forever. For example, in one sally he imagined a linear city in which all structures were truly mobile. This image made it possible to think clearly about location, the effects of the durability and immobility of structures, and appropriate land policies, without being trapped by peripheral issues. No one could cut to the quick like Vickrey.

TRED member Ed Mills of Northwestern University spoke to our assembled group at the Institute shortly after hearing the news of Bill’s untimely death. “Bill Vickrey lived his life exactly as he wished, right to the end,” Mills said. “He died with his boots on.” Those of us who have been honored to know Bill for some time have been shaped by our contact with him, and we will miss him.

Dick Netzer

TRED member and visiting senior fellow of the Lincoln Institute

Julie Campoli, a landscape architect, land planner and principal of Terra Firma Urban Design in Burlington, Vermont, and Alex MacLean, a photographer, trained architect and principal of Landslides Aerial Photography in Cambridge, Massachusetts, have worked collaboratively for more than two years to research and document the phenomenon of residential density. They have developed a catalog of more than 300 aerial photographs that illustrate a wide range of density in both established and newer neighborhoods around the country. The Lincoln Institute has supported their work, which has been presented through lectures and courses and is available as a digital working paper titled “Visualizing Density” on the Institute’s website.

How did you join forces to begin this work on photographing and measuring density as a visualization tool for community planning?

We both have a longstanding interest in using visual images to illuminate land use issues. For years Alex has recorded human imprints on the land quite eloquently through his aerial photography. I am constantly experimenting with graphic techniques to communicate design ideas and to express how we shape the built environment. In our first collaboration, Above and Beyond (written with planner Elizabeth Humstone, APA Planners Press, 2001), we employed aerial photographs, many of which were digitally enhanced, to show how and why landscapes change over time. Our intent was to help readers understand the land development process by representing it in a very graphic way.

As we completed that book, we could see that fear of density was emerging as a major obstacle to the type of compact, infill development we were advocating. It became apparent to us that, although people liked the idea of channeling growth into existing areas, they seemed to balk at the reality. We saw many instances where developers trying to build higher-density housing met stiff resistance from a public who equated density with overcrowding. In many communities density is allowed and often encouraged at the policy level, but it is rejected at the implementation stage, mainly because the public has trouble accepting the high numbers associated with dense development.

We became interested in this ambivalent attitude and wanted to look more closely at those density numbers. It seemed to us that a preoccupation with numbers and a lack of visual information was at the heart of the density problem. We thought that some of the graphic approaches we used in Above and Beyond might help people understand the visual aspects of the density issue. We wanted to translate the numbers that were associated with various density levels into mental images, specifically to show what the density numbers mean in terms of real living places.

Why is density such a difficult concept to understand and visualize?

Anything is difficult to visualize if you have only a few pieces of information from which to conjure your mental image. Density is most often represented as a mathematical ratio. It is the number of units divided by the number of acres, or the gross floor area of a building divided by the size of its site. These measurements describe a place as a numerical relationship, which only takes you so far in being able to imagine it. Such information fails to convey the “look and feel” of density and often creates confusion in the community planning process.

An individual’s response to the issue of density often depends on past experience and the images that happen to be part of one’s visual memory. Someone might associate higher-density numbers with an image of Boston’s historic Beacon Hill neighborhood or central Savannah, but high-density development is more frequently imagined as something negative. This is the gap between density as it is measured and density as it is perceived. One is a rational process. The other is not.

What does your density catalog illustrate?

The catalog contains aerial photographs of neighborhoods in several regions of the country. They are arranged according to density level, ranging from exurban houses on 2-acre lots to urban high-rise apartments at 96 units per acre. Each site is photographed from a series of viewpoints to show its layout, details and context. The catalog can be used to compare different neighborhoods at the same density or to see how the design and arrangement of buildings changes as density levels rise. We included a wide array of street patterns, building types and open spaces, demonstrating how the manipulation of these components can create endless variations on neighborhood form.

What becomes apparent to anyone looking at the catalog is that there are many ways to shape density, and some are more appealing than others. We don’t try to suggest which images are “good” or which are “bad”; we let the viewer draw his or her own conclusions. Our hope is that after viewing the catalog people will not only have a clearer idea of what 5 units or 20 units per acre looks like, but, more important, they will be able to imagine attractive, higher-density neighborhoods for their own communities.

How do you measure density?

In the first phase of our project we focused on residential density as measured in units per acre. Using the 2000 U.S. Census, it is possible to find the number of housing units for any census block in the nation. We photographed neighborhoods across the country and calculated the number of units per acre for each site by determining the number of units from the census data and then dividing by the acreage.

Units-per-acre is a measurement commonly used in local zoning and in the review of development projects. It is familiar and understandable to the average person dealing with local density issues and provides a relatively accurate measure for primarily residential neighborhoods. In calculating the density of mixed-use or commercial sites, floor area ratio is a more precise measurement. We plan to extend our analysis to mixed and other uses with this measurement in the next phase of our work, to see how various design approaches can accommodate higher densities.

What is the connection between density and design

Design plays a profound role in the success of compact development. Although it seems that the smart growth movement is confronting a density problem, it’s really more of a design challenge. It is not density but design that determines the physical character and quality of a place. This was made clear to us when we found examples of existing neighborhoods with widely varying character yet the same density. One area might have a sense of spaciousness and privacy, while another appears cramped. Different design approaches can dramatically affect one’s perception of density. This defies the commonly held belief that fitting more people into a smaller area inevitably results in a less appealing living environment. Higher densities, especially on infill sites, pose a greater challenge to designers, but they do not dictate a certain type of form or character.

As we measured the density of existing neighborhoods and assembled the catalog, we began to see specifically how design accommodates density. The most appealing neighborhoods had a coherent structure, well-defined spaces and carefully articulated buildings. They were the kinds of places that offered a lot of variety in a small area. If planners and developers want to promote density, it is essential to identify the amenities that make a neighborhood desirable and to replicate them wherever possible. Interconnected neighborhoods with high-quality public, private and green spaces, and a diversity of building types and styles, will win more supporters in the permit process and buyers in the real estate market than those neighborhoods without such amenities.

How can planners, developers and community residents use the catalog to achieve the principles of smart growth in their local decision making to design new neighborhoods?

The catalog can be used as a tool to refocus the density discussion away from numerical measurements and onto design issues. In our workshops we ask participants to examine several photographs from the catalog showing nine neighborhoods that have a similar density but very different layouts. In articulating their impressions of the places they see, what they like and why, they are forced to think about how the design—the pattern of streets, the architecture or the presence of greenery—affects the quality of the place.

In a town planning process, if residents participate in a similar exercise, they will take the first steps toward a community vision for compact neighborhoods. They can see that the same design principles behind those preferred places can be used to create appealing dense neighborhoods in their own communities. Once they develop a vision for what they want, they can use the planning and regulatory process to guide development in that direction.

Developers of urban infill housing often find themselves on the defensive in the permit process, arguing that density does not necessarily equal crowding. The catalog provides images that can help bolster their case. More importantly, it offers developers, architects and landscape architects visual information on historic and contemporary models of compact development. They can use the photographs to inform their design process, instilling features of the best neighborhoods into their own projects.

What are some of your conclusions about why understanding density is so important to the planning process?

Density is absolutely essential to building strong communities and preventing sprawl. It’s also a growing reality in the real estate market. Instead of denying it or barely tolerating it, we can embrace density. The trick is to shape it in a way that supports community goals of urban vitality and provides people with high-quality living places. At this point though, we seem to be a long way from embracing density. It may be a deep cultural bias or simply that many Americans are unfamiliar the benefits of density, such as more choices and convenience to urban amenities. And in many cases, they have not been shown that neighborhoods of multifamily homes, apartments and houses on small lots can be beautiful and highly valued. We hope that our residential density project and the digital catalog can provide some material to fill the void.

Julie Campoli is principal of Terra Firma Urban Design in Burlington, Vermont, and Alex MacLean is principal of Landslides Aerial Photography in Cambridge, Massachusetts.

Urban land management policies and land market operations have taken on greater status in the debate on urban public policy in Latin America, and they are given increased attention in academic research and the development agendas of many countries in the region. Over the past 10 years the Lincoln Institute’s Program on Latin America and the Caribbean has supported a network of Latin American scholars and practitioners who have developed seminars, promoted research, organized public debates, consulted with decision makers and published their findings on these timely issues. Members of this network met at a conference in Buenos Aires in April 2004 to assess their activities and prepare this summary declaration of core land policy issues crucial to the search for more sustainable urban development programs in the future.

Urban land policy in Latin America and the ways that land markets operate tend to produce cities that are economically unequal, politically and socially exclusionary, spatially segregated and environmentally unsustainable. The consequences of these policies can be seen in the high and often irrational prices for land, due in part to the absence of effective urban land management practices.

The Current Situation

Land markets are structurally imperfect. However, the functioning of urban land markets depends on social relations, just as the outcomes of land market operations affect those relations, making it both possible and necessary to influence the markets. Instead of removing the imperfections, many instruments and policies have in fact helped to distort urban land market operations even further. Moreover, many established policies have kept the “rules of the game” in urban real estate unchanged, and apparently untouchable.

A more comprehensive reading of the problem reveals that, rather than being the result of inconsistent rationalization, the current dysfunctional land market is the result of missed opportunities for socially sustainable development in Latin American cities. Yet there are promising and innovative alternatives that can overcome the existing bottlenecks evident in inadequate and destructive national government policies, the enduring difficulties in financing urban development, and poor management practices.

One of the most glaring negative outcomes of the current situation is the relative persistence, weight and importance of informal urban land markets dominated by many exclusionary practices, illegal titling, lack of urban services, and other problems. Deregulation in places that should be regulated (poor outlying areas on the urban fringe), overregulation of wealthy regulated areas, and privatization policies that disregard social criteria are factors that help to drive these negative processes, particularly the spatial concentration of the urban poor. Although the majority of regularization programs are well-intended, they instead cause perverse effects, including increased land costs for the poorest sectors.

Traditional urban planning processes and urban standards have lost importance and effectiveness as instruments for guiding urban development, especially the existing mechanisms for land management. Yet this situation offers opportunities to think about innovative ways to deal with land management and urban planning strategies. This opportunity has already been seized in some places, where new experiments and proposals are causing intense debates by questioning the predominant traditional approaches.

Creating new practices within this framework requires making one unavoidable step: rethinking urban land taxation by incorporating new methods and keeping an open mind regarding alternative fiscal instruments that must be intended as tools to redirect current urban development and discipline the operation of the urban land market. These new tools should not only collect funds in order to build infrastructure and provide urban services, but also contribute to a more equitable distribution of benefits and costs, especially those associated with the urbanization process and the return of recovered land value increments to the community.

Proposals for Action

Recognize the indispensable role of the government. It is critical that the government (from local to national levels) maintains an active role in promoting urban development. The local level should be more committed to structural changes in land management, while the national level should actively foster such local initiatives. Government must not ignore its responsibility to adopt urban land market policies that recognize the strategic value of land and the specific characteristics of how land markets operate, in order to promote the sustainable use of the land by incorporating both social and environmental objectives and benefiting the most vulnerable segments of the urban population.

Break the compartmentalization of fiscal, regulatory and legal authorities. Lack of cooperation among local authorities is responsible for major inefficiencies, ineffective policies, waste of scarce resources and inadequate public accountability. Furthermore, incongruent actions by different public authorities send misleading signals to private agents and create uncertainties if not opportunities for special interests to subvert government plans. The complexity and scale of the challenges posed by the urban social reality of Latin American cities require multilateral actions by numerous stakeholders to influence the operation of urban land markets (both formal and informal), thus insuring the achievement of joint objectives: promoting sustainable and fair use of land resources; reducing land prices; producing serviced land; recognizing the rights to land by the urban poor; and sharing the costs and benefits of urban investment more evenly.

These authorities must also coordinate urban development policies with land taxation policies. They should promote a new urban vision with legislation that recognizes the separation of building rights from land ownership rights, with the understanding that land value increments generated from building rights do not belong exclusively to landowners. Urban managers must also devise creative mechanisms whereby these land value increments may be mobilized or used to produce serviced land for low-income social sectors, thereby offsetting urban inequalities.

Recognize the limits of what is possible. Transforming the current regulatory framework that governs the use of urban land requires new legal and urbanistic thinking that recognizes that inequalities and socio-spatial exclusion are intrinsic to the predominant urban development model. Even within the current model there is substantial room for more socially responsible policies and government accountability. Urban regulations should consider the complexity of land appreciation processes and enforce effective traditional principles such as those that restrain the capacity of government agencies to dispose of public resources or proscribe the “unjustified enrichment” of private landowners.

Break vicious cycles. Alternatives to existing regularization programs are needed to break the vicious cycle of poverty that current programs help to perpetuate. It is important to recognize that these programs are only a stopgap measure and that urbanization, housing and land taxation policies must also be integrated into the process. Reliance on housing subsidy policies, although inevitable, can be nullified if there are no mechanisms to prevent these subsidies from being translated into an increase in land prices. City officials should give priority to the creation of more serviced land rather than new regularization programs, since the right to a home is a social right to occupy a viable “habitat” with dignity. It is also important to understand that the low production of serviced land per se contributes to withholding the supply and, therefore, to higher prices affecting all aspects of urban development.

Furthermore, individual solutions (such as plot-by-plot titling processes or case-by-case direct subsidies to individual families) ultimately result in more costs for society as a whole than broader, collective solutions that incorporate other aggregate values such as public spaces, infrastructure investment and other mechanisms to strengthen social integration. Many Latin American countries have witnessed subsidized housing programs, often supported by multilateral agencies, where the land component is overlooked or dismissed. Such programs seek readily available public land or simply occupy land in intersticial areas of the city. This disregard of a broader land policy compromises the replicability, expansion and sustainability of these housing programs on a larger scale.

Rethink the roles of public and private institutions. Land management within a wide range of urban actions, from large-scale production of serviced land for the poor to urban redevelopment through large projects, including facelift-type actions or environmental recovery projects, requires new thinking about how public institutions responsible for urban development can intervene through different types of public-private associations. Redeveloping vacant land and introducing more flexibility in the uses and levels of occupancy can play a crucial role here, provided such projects fall under the strategic guidelines of public institutions, are subject to monitoring by citizens, and incorporate a broadly shared and participatory vision of urban development.

Showcase projects such as El Urbanizador Social (The Social Urbanizer) in Porto Alegre, Brazil, the Nuevo Usme housing project in Bogotá, Colombia, and that country’s value capture legislation are examples of sensible and creative efforts that recognize the importance of adequate urban land management and new thinking on the role of land, particularly the potential of land value as an instrument for promoting more sustainable and equitable development for the poor in our cities. Creative and balanced new thinking is also exemplified by the joint ventures of public land and private capital in Havana, Cuba, with value increments captured for upgrading densely populated historic areas.

Empower the role of land taxation in public finance to promote urban development. National, state or provincial and local governments must share responsibility for promoting property taxation as an adequate and socially meaningful method of financing and fostering urban development. The property tax should be sensitive and responsive to Latin American cities that have a strong legacy of marked economic and socio-spatial differences. There may be good reasons to tax land at a higher rate than buildings, in a rational and differentiated manner, especially in outlying areas subject to urban speculation and lands offered ex ante to low-income sectors of society (making certain that paying the tax also helps to build citizenship in these sectors). As already noted, it is also critical to create innovative fiscal instruments appropriate to special situations and other methods for capturing the value generated.

Educate stakeholders in the promotion of new policies. All actors involved in these processes, from judges to journalists, from academics to public officials and their international mentors, need in-depth training and education in the operation of land markets and urban land management in order to achieve the above objectives. We must identify the “fields of mental resistance,” particularly in urban and economic thinking and in the legal doctrines that represent the obstacles to be overcome. We must recognize, for example, that an “informal right” exists and operates in many areas to legitimize land transactions socially, if not legally, and to create networks and spaces of solidarity and integration. It is urgent that we take steps to introduce these themes and proposals into political agendas at the various government levels, in political parties, social organizations, academia and the mass media.

Latin American Network

Pedro Abramo, Rio de Janeiro, Brasil

Oscar Borrero, Bogotá, Colombia

Gonzalo Cáceres, Santiago, Chile

Julio Calderón, Lima, Perú

Nora Clichevsky, Buenos Aires, Argentina

Claudia De Cesare, Porto Alegre, Brasil

Matilde de los Santos, Montevideo, Uruguay

Diego Erba, São Leopoldo, Brasil

Edésio Fernandes, London, England

Ana Raquel Flores, Asunción, Paraguay

Fernanda Furtado, Rio de Janeiro, Brasil

Alfredo Garay, Buenos Aires, Argentina

Silvia García Vettorazzi, Guatemala City, Guatemala

Ana Maria González del Valle, Lima, Perú

Samuel Jaramillo, Bogotá, ColombiaCarmen Ledo, Cochabamba, Bolivia

Mario Lungo, San Salvador, El Salvador

María Mercedes Maldonado, Bogotá, Colombia

Carlos Morales Schechinger, Mexico City, Mexico

Laura Mullahy, Cambridge, Massachusetts, USARicardo Núñez, Havana, Cuba

Sonia Rabello de Castro, Rio de Janeiro, Brasil

Eduardo Reese, Buenos Aires, Argentina

Francisco Sabatini, Santiago, Chile

Martim Smolka, Cambridge, Massachusetts, USA

Alvaro Uribe, Panama City, Panama

Ricardo Vanella, Córdoba, Argentina

Maria Clara Vejarano, Bogotá, Colombia

Isabel Viana, Montevideo, Uruguay

Post-apartheid South Africa is an experiment the like of which the world has never seen before,says Myesha Jenkins, performance poet from Los Angeles who emigrated in 1993, the year before Nelson Mandella became president. “We want this experiment to work.” Taxi-driver Vincent from the northern province of Limpopo, speaking of the elections that will take place later in 2007, says, “We must do it right. The eyes of the world are on us.”