Instruments to Induce the Social Function of Urban Property in City of São Paulo:

Expropriation With Payment Through Government Bonds and Alternative Instruments

Abstract

This article aims to discuss the application of instruments that induce the social function of property in the Municipality of São Paulo, specially the expropriation with payment through government bonds and alternative instruments inserted by the review of Strategic Direct Plan (PDE) – Municipal Law nº 16.050/2014, starting from the definition of the social function of property and the constitutional provisions referring to urban development policy, quickly going more specific provisions of the PDE. Furthermore, using as a basis the data collected by the Coordination of Control of Property´s Social Function (CEPEUC), a unit that is part of the Municipal Secretariat of Urbanism and expropriation with payment Licensing (SMUL), in a report produced in June 2023, we seek to identify the effects of the instruments that induce the social function of urban property applied until that moment, i.e., compulsory subdivision, construction and use (PEUC) and progressive IPTU over time, in addition to report the difficulties in initiating the aplication of the instrument of through government bonds. Considering these difficulties and seeking to provide greater effectiveness in fulfilling the social function of urban property, at the end is mentioned the alternative instruments inserted by the review of the PDE – Municipal Law nº 17.975/2023.