Regularization of Informal Settlements in Latin America looks at awarding titles, upgrading
CAMBRIDGE, Mass., May 10, 2011 /PRNewswire-USNewswire/ — Today one out of four urban residents in Latin America lives in a dwelling that does not have a legal title, or lacks urban services such as water and sanitation, or is constructed in a precarious location. Improving conditions in existing informal settlements and shantytowns in Latin American cities is a necessary and worthy goal, but the programs for “regularizing” these places have had mixed results so far, a new Lincoln Institute report says.
The two major approaches to regularization – legalizing parcels by awarding the occupants titles to the property as exemplified in Peru, and Brazil’s broader approach that combines titling with extensive upgrading of public services – both fall short of expectations. Titling by itself is relatively inexpensive but has not triggered neighborhood improvements, while upgrading is much more costly and can stimulate additional irregular development by those hoping to benefit from future upgrading.
The lack of revenue associated with regularization has inhibited the scaling up of such programs. Regularization programs can be more self-sustaining financially through property taxes and charges that capture some of the increases in land value caused by urban infrastructure and service improvements, according to Regularization of Informal Settlements in Latin America, the latest Policy Focus Report published by the Lincoln Institute of Land Policy.
“Customized, cost-effective, and sustainable approaches to upgrading have the potential to improve the lives of the many millions of people living in informal settlements,” said Gregory K. Ingram, president of the Lincoln Institute, “but regularization is a work in progress, and we need to learn more about what works.”
An estimated 127 million people in Latin American cities live in informal settlements, on public and private land, in many cases in neighborhoods that have existed for decades and physically resemble legal developments. Legal recognition is increasingly seen as the only realistic remedy for informal settlements, as evictions and massive relocations to new public housing are neither tolerated nor economically feasible in most countries.