Brazil’s Minha Casa, Minha Vida program is back, delivering over 2,700 homes across six Brazilian states

Originally published on Feb.14, 2023

Santo Amaro, Bahia – Alongside the Ministry of Cities (Ministério das Cidades), Brazil’s federal government resumed its Minha Casa, Minha Vida (or My Home, My Life) program – the largest of its kind in Brazil – on February 14. The program was created by the government of President Luiz Inácio Lula da Silva in March 2009. In a ceremony held in the municipality of Santo Amaro, in the state of Bahia, President Lula and the Minister of Cities Jader Filho delivered 2,745 MCMV homes to the people. They also guaranteed work on another 5,562 homes for the low-income population and announced the goal of contracting 2 million new projects by 2026.

President Lula emphasized that the program is one of the government's priorities: to look out for the Brazilian population. "We have returned to govern this country in the expectation of improving the quality of life of the Brazilian people", he said. Also during the ceremony, the president signed a provisional measure that establishes Minha Casa, Minha Vida and presents its general guidelines. The legal act is be published in the Official Gazette (Diário Oficial da União) over the next few days.

The government’s efforts to resume MCMV in record time were highlighted by Minister Jader Filho. "Minha Casa, Minha Vida is an absolute priority to the Lula government and to the Ministry of Cities. We’ve made every effort, we’ve worked incessantly within the Ministry – and, in just 40 days after taking office, here we are delivering the first homes", he said. "This is a record, an achievement, because we’ve had to face and overcome huge issues along the way, recovering from delays, revising infrastructure, redoing projects. That is why the staff, technicians and analysts of the Ministry of Cities are so happy right now. This is the government doing its work, meeting the needs of the people".

The resumption of Minha Casa, Minha Vida will also influence Brazilian economy. "Over the next four years, we’re going to create more than a million new direct and indirect jobs in construction work. There will be 2 million new homes for people across Brazil. Minha Casa, Minha Vida also has this effect: moving the economy and generating income and opportunities throughout the country", said Minister Jader Filho.

GREAT NEWS — One of the main novelties of the program is that Level 1 is back and now focused on families with an up to BRL 2,640 gross monthly income. (Previously, the required income was BRL 1,800). Over the last four years, the population in this income range had been excluded from the program. Now, the idea is to offer up to 50% of the financed and subsidized homes to this part of the population. Historically, the support offered to families in this income range ranges from 85% to 95%.

Other news about Minha Casa, Minha Vida are expanded inclusion in social rental housing; the possibility of purchasing second-hand urban homes; and the inclusion of homeless families in the program. These new developments will be closer to shops, services and public equipment, and have better surrounding infrastructure.

President Lula celebrated the program’s comeback. “I came over here to start proving that we can indeed rebuild this country. We’re going to work hard and we’re never going to stop. Starting today, I’m going to travel all over Brazil with my ministers. We’re going to visit every city, every state, and we’re going to make sure that all the construction work that has been paralyzed begins again. We’re going to start advancing all of them, so that this country may be able to once again move ahead, so the wheels are turning and producing new economic growth. People’ll smile and hope again!”, he said.

MCMV focuses on increasing the supply of homes to meet the housing needs of Brazil’s low-income population, mainly. In its various forms of assistance, the program strives to promote families’ rights to cities and decent housing. All this is associated with urban and economic development; with work and income generation; and with raising standards of housing and quality of life for the population.

Managed by the Ministry of Cities, Minha Casa, Minha Vida offers subsidies and interest rates below the market to facilitate the acquisition of popular housing and housing developments in the city or in the countryside up to a certain amount.

HOMES DELIVERED — Way beyond numbers and investment figures, however, owning a home changes horizons, creates perspectives and opens new paths to many people who were previously hindered by deprivation and an imposed lack of dignity. This is how Brazilian manicurist Josimeire Santana Pinheiro – future resident of Residencial Vida Nova Sacramento, in Santo Amaro – feels.

Single mother of three children aged between 4 and 11, Josi, as she likes to be called, has been waiting for the keys to her own house for six years – and they’ve arrived by the hands of President Lula and the Minister of Cities Jader Filho in a very moving exchange. “I have no words to thank you. I thank God and President Lula, who has benefited us with this gift,” said Josi, in tears. “If it weren't for Lula – who took so many people like me out of poverty and gave us dignity to live in our own houses – I wouldn't have my own home”, she added.

The houses delivered on Tuesday cover nine Brazilian municipalities: Santo Amaro (684), Lauro de Freitas (206) and Salvador (159), in the state of Bahia; Aparecida de Goiânia (300) and Luziânia (192), in the state of Goiás; Contagem (600), in the state of Minas Gerais; João Pessoa (160), in the state of Paraíba; Santa Cruz do Capibaribe (206), in the state of Pernambuco; and Cornélio Procópio (238), in the state of Paraná.

These homes were almost ready in the beginning of 2023, so were only being held back by certain bureaucratic issues – such as making beneficiary documentation official in notary offices, or documentation referring to water, sewage and energy. All this is part of the process that enables keys to be handed over.

It should be noted that some of this construction work had been contracted almost ten years ago. In this sense, the Ministry of Cities has made efforts over the last 30 days to visit each of the projects that were delivered. Obstacles and solutions were identified alongside financial agents and local entities to enable delivery to the population.

RESUMPTION OF WORKS — The developments that will be resumed – as announced by President Lula – are located in five municipalities: Rio Largo (609), in the state of Alagoas; Chapadinha (868) and Imperatriz (2,837), in the state of Maranhão; Governador Valadares (240), in the state of Minas Gerais; and Belém (1,008), in the state of Pará. All in all, the Brazilian government will strive to continue or resume work on 186,700 homes across the country.

STATUS QUO — Currently, there are approximately 186,000 unfinished houses in the Minha Casa, Minha Vida – Level 1 program, 170,000 of which in the Companies, Urban Entities and Rural Entities modalities. There are another 16,000 in the Public Offering modality. Of this total, 83,000 developments are at a standstill due to situations such as irregular occupation; pending infrastructure; construction company abandonment; and signs of construction defects, amongst many other reasons. These homes will be jointly worked on by financial agents, companies, the federal government and public entities – respecting the attributions of each – towards resumption and completion.

The homes that are ready were contracted in the 2009-2018 period; 80% of them between 2012 and 2014. Among the developments that are paralyzed, 37.5 thousand houses are to be built in 2023 – 10.8 thousand in the first 100 days of government, and 26.7 thousand during the remainder of the year. Moreover, after 2023 work will resume on around 32,000 houses which present more complex challenges – such as occupations/invasions and infrastructure problems.

In addition to President Lula and Minister Jader Filho, the ceremony for resumption of Minha Casa, Minha Vida in Santo Amaro was attended by the Presidency Chief of Staff Rui Costa; by the Minister of Transport Renan Filho; by the president of Caixa Econômica Federal Maria Rita Serrano; and by the governor of Bahia Jerônimo Rodrigues.

The event was held simultaneously in four other municipalities. The event in Lauro de Freitas was attended by the Minister of Culture Margareth Menezes; in Contagem, by the Minister of Mines and Energy Alexandre Silveira; in Aparecida de Goiânia, by the Minister of Women Cida Gonçalves; and in João Pessoa, by the Minister of Science, Technology and Innovation Luciana Santos.