ABSTRACT

Since the 1970s, Brazilian municipalities have sold development rights in exchange for developers financing urban services ranging from hard infrastructure to social housing. The advancing of the debates regarding the separation of property rights and the social function of land allowed the popularization of this sort of developer obligation (DO) in Brazil. The instrument is found across the country varying from straightforward “in kind” obligations to the complex auctions of the CEPACs. This chapter focuses on the economic, cultural, operational and legal aspects within which it developed. It addresses its evolution and results, as well as the practice of different cities, especially the relevant approaches of São Paulo and Curitiba, showing the potential of this local finance tool to generate relevant resources.