Brazil to Strengthen Sustainable Development of Florianopolis, Promote Access to Decent Housing

The Inter-American Development Bank (IDB) has approved a $120 million loan to foster sustainable territorial and urban development in the municipality of Florianopolis. The operation seeks to increase access to decent housing for the population living in socially and environmentally vulnerable situations. It is also expected to contribute to the urban requalification of the city's historic center, improve sustainable mobility, and strengthen territorial, urban, and security management capacities, as well as socio-environmental risk management.

With regard to housing, the loan approved by the IDB's Board of Executive Directors will finance the development of comprehensive and resilient low-carbon housing complexes, prioritizing access for female heads of household. With regard to the requalification of the historic center, public spaces and social facilities will be built using green and energy efficiency criteria, and historic and heritage buildings will be restored.

The program’s direct beneficiaries will be 1,450 vulnerable households in at-risk areas hit hardest by housing shortages. An estimated 40,000 residents, 8% of the total population of Florianopolis, will experience social and economic benefits from the requalification. In addition, some 165,000 users of the intervened roads will be able to make their journeys in less time each day, whereas all city residents will benefit from increased urban security.

Florianopolis, capital of the state of Santa Catarina, faces severe challenges due to dispersed urban growth and a rise in population affecting the provision of services, especially for the most vulnerable sectors of the population. This growth is causing loss of natural areas and increasing risk exposure for people in hazardous areas, aspects that this operation hopes to help resolve.

The loan has an amortization term of 24.5 years, a 6-year grace period, and an interest rate based on SOFR.