LOCATION SUBSIDY FOR CONSTRUCTION PROJECTS OF THE HOUSING SOLIDARITY FUND PROGRAM (SFP)

OF THE MINISTRY OF HOUSING AND URBAN DEVELOPMENT

– THE CASE OF SANTIAGO METROPOLITAN REGION - CHILE

The International Network for Urban and Regional Statistics

Standing Committee of the International Association for Official Statistics

Contents

Location subsidy (SDL)

Requisites and beneficiaries

Territorial dimension of

subsidies

Analysis and comments

Objective :

Characterise CNT* projects benefited by Location Subsidy during the period 2007 – 2009, according to their final location within the Santiago Metropolitan Region

CNT: Construction on a new plot of land

Location subsidy (SDL)

• Is an addition to the normal governmental housing subsidy. It is

destined to buying a plot of land as an incentive for a better location

of new social housing projects.

• The beneficiary families would be better integrated to accessible

urban services.

Total subsidy = Basic subsidy + SDL

SUBSIDIO A LA LOCALIZACIÓN

¿How does the subsidy work?

Destined to buying a new plot of land and/or improving the condition a given plot of land.

A maximum subsidy per household of US$ 8,000 to buy a plot of land;

and US$ 4,000 for plot improvement.

The addition of subsidising the acquisition and the improvement of a plot

of land cannot be higher than US$ 8,000

How is it applied?

Fiscal valuation correction factor X Fiscal valuation

where:

Correction factor = 0.025 X (N° of housing units in a project) + 1.2

net plot surface

.

SUBSIDIO A LA LOCALIZACIÓN

Superficie neta: superficie del terreno a construir de acuerdo a al definición utilizada para el calculo de la densidad neta definido en el la O.G.C.U.Avalúo fiscal del terreno: Valor del terreno que se detalla en el certificado fiscal

Beneficiaries

• Socially vulnerable families (Ficha de Protección Social)

• Application though an EGIS (Social Real State Agent), that organises demand and designs the project

Requisites

More than one household per home (Allegamiento)Overcrowded household (Hacinamiento)DisabilitiesOld ageOther

Social vulnerability

Cities with a population over 5,000 inhabitants

A maximum of 150 families per project

Access to public transport within 500 m

Not more than 1,000 m from education services

Not more than 2,500 m distant from a primary health service

REQUISITOS Y BENEFICIARIOS

77 thousand beneficiary

families at a national level

28 thousand in Santiago

Metropolitan Region (RMS).

13 thousand families by

means of CNT projects in

RMS

Beneficiary families2007 - 2009

FSV: N°de familias beneficiadas en RMPeriodo: 2007-2009

0

2000

4000

6000

8000

10000

12000

14000

2007 2008 2009

Fuente: elaboración propia en base a datos MINVU-OH

N°Fa

milia

s

Con Sub.Localización Sin Sub.Localización

BENEFICIARIOS

50% of the benefitted families

in the RMS by means of

CNT

97% of CNT projects

received SDL, reaching over

13,000 families in the region

75% of invested SDL

resources correspond to CNT

projects

Beneficiary families according to the specific programme2007 - 2009

BENEFICIARIOS

Montos de subsidio SDL por tipología en RMPeriodo: 2007-2009

CNT75%

FSVI AVC23%

FSVII AVC2%

Fuente: elaboración propia en base a datos OH-MINVU

Familias beneficiadas con SDL por tipología RMPeriodo: 2007-2009

FSVI AVC42%

FSVII AVC8%

CNT50%

Territorial Dimension of the Subsidy: Zones

Location Subsidy benefitted families in CNT projects, according to zone within Santiago Metropolitan Region (2007)

ZONE N° families %

AMGS 2,343 21.76

A. Vespucio ring 879 8.16

Out of the AMGS 7,544 70.07

Total 10,766 100%

Source: Housing Solidarity Fund Data Base, 2007

A considerable number of

projects were located outside

the A. Vespucio ring.

The smaller projects (lower N°

of families) tend to be located

within the A. Vespucio ring.

In smaller cities of the region

most projects were located in

their periphery.

DIMENSION TERRITORIAL DEL SUBSIDIO

Location subsidy financial resources Number of benefitted families

Out of the AMGS it is found, on average :

695 families per municipality. 125.5% more than at the interior of the AMGS

US$ 3,327,200 invested, 88.1% more than within the AMGS

DIMENSION TERRITORIAL DEL SUBSIDIO

Territorial Dimension of the Subsidy: Municipalities

2007-2009

Non proprietor families by RM zone, 2009

Source: Social Protection Form (FPS) Database 2009

Outside the AMGS there are 500% more non proprietor families than at the interior of the AMGS

Metropolitan Region of Santiago

Non proprietor families according to SFP data

base

Municipalities outside the AMGS

72,823

Municipalities belonging to the AMGS

436,292

ANALISIS Y COMENTARIOS

Outside the AMGS, each municipality has received 88% more location subsidy resources.

Outside the AMGS, each municipality counted with 125% more beneficiary families.

On average, outside the AMGS each housing project included 24% more houses per project.

On average, within the AMGS, each household receives 40% more location subsidy resources.

Contrary to the situation inside the AMGS, on average, outside the AMGS the urban population is less than 71% of the total (ranging from 16 to 84%)

Resources and Beneficiary families according to zone of the RMS

ANALISIS Y COMENTARIOS

Average values according to the number of municipalities with projects

Source : Housing Observatory – MINVU Data Base

Outside AMGS (11 municipality)

UF 83.180 US$ 3,327,200

695 114UF 107

US$ 4,28071%

Inside AMGS (22 Municipality)

UF 44.207 US$ 1,178,280

308 92UF 150

US$ 6,000100%

% Urban population

(Mean)Área

Families per project

Location Subsidy per

family

Location Subsidy per municipality

US$

Promedio families per municipality

SFP allocation y city type

Discussion on possible

indicators/further analysis:

Impact on minor and intermediate

cities

Absorption of urban population in

predominantly rural localities (less than

71% urban)

Functional dependence of minor cities

to Santiago Metropolitan Area

The subsidy is not proportional to the

size of the cities (200 UF do not

represent the same benefit in all cities)

Differential behaviour of the subsidy

according to local land markets

ANALISIS Y COMENTARIOS

Source: SII Data Base 2002