Technical Assistance and Guidance in the Implementation of the Brazil National Housing Plan (PlanHab)



Approval Date
Actual Completion Date
Proposal Focus
Core Focus
Secondary Cities
Country Type


Brazil, one of the most urbanised countries, is suffering from housing deficit. In 2005, the national housing deficit was estimated at 7.9 million. The government recognizes housing as an important sector since it contributes to job creation, expansion of the finance system and also for household wealth creation. The government also recognises housing as a right of the citizens. This Joint Work Programme, between National Secretariat for Housing and the Ministry of Cities, and the Cities Alliance, aims to provide guidance on the National Housing Plan. It intends to formulate a strategy to operationalise the principal objective of the National Housing Policy – universal access to dignified housing for every citizen.
The main objective of the proposed Grant is to provide guidance and technical advice to the Government of Brazil on the implementation of the National Housing Plan, especially in regard to elaboration of slum upgrading policies and the detailed development and implementation of a new government housing subsidy program. It also intends to promote dissemination and learning efforts in these areas.
In regard to the development of a new subsidy system, the following activities were completed under the initial grant: (i) Establishment of guidelines for a new policy (not program) of subsidies; (ii) Quantification of needs (potential demand); (iii) Estimation of funding amounts required in the short and long term according to existing operational capability; and (iv) A proposal for a subsidies funding stream. In order to elaborate upon the policy that developed with the support of the initial Cities Alliance grant and develop the detailed subsidy program, the following activities would need to be completed: (i) Creation of a program of subsidies for each specific income range defined by PLANHAB (with and without ability to pay); (ii) Negotiation of the guarantee fund along with financial agents and development of its regulations (Law / Decree, etc.); and (iii) Design of a database systems to facilitate the Implementation and operation of the new subsidies stream proposed by PLANHAB. A conceptual design of the database system was proposed as part of the PLANHAB. It will build on the infrastructure that is already in place as part of the Cadunico (Cadastro Único) and Cadmut (Cadastro Nacional dos Mutuários), and will leverage the lessons learned from the implementation of the Bolsa Familia program. It is envisioned that the database will be managed by the National Secretariat of Housing, with the logistical support of the Caixa Economica Federal. The Ministry of Cities has requested technical assistance from the World Bank for the initial development of the system.
Expected Impacts and Results
The PlanHab served as the policy framework and foundation for the launch of the MCMV program. The R$34 bn (US$15bn) first phase of the program – launched in March 2009 - invested RS$20bn in public funds from the Treasury and R$7.5bn from FGTS funds to support the delivery of one million affordable housing units for families earning less than 10 minimum wages. In turn, this has leveraged significant private sector investments as the program was implemented through a PPP, especially for housing developments for families earning from 3-10 minimum wages. The second phase of the program – with R$72.6 bn in subsidies and R$53.1bn in financing – aimed to expand the delivery of the affordable units to another two million families earning less than 10 minimum wages. The outputs of this Grant/TA have directly contributed to: a. Finalization of the National Housing Plan (PlanHab) taking into account the update needed to reflect recent sector development and the publication of the plan; b. Operationalization of the Plan through modeling of the funding requirements and subsidy flows; c. Technical assistance to SNH regarding: • The alignment of ‘Minha Casa Minha Vida (MCMV)’ with PlanHab, • The refinement of parameters and guidelines related to the ongoing implementation of MCMV Phase I, and • A direct impact in the identification of new parameters and guidelines for phase II d. Setting up a M&E system to monitor program implementation, including the flow of public funds and subsidies and evaluate the program’s impact on beneficiaries and housing/land markets in general. The Grant also supported capacity strengthening of SNH to carry out the monitoring and evaluation of the Program and the sector.