Government of Minas Gerais will auction real estate even with deficit

The Romeu Zema (NOVO) government, through the State Housing Company (Cohab), will auction properties in 21 municipalities. There are 24 notices corresponding to properties that add up to 1.5 million square meters. The state-owned company intends to raise around R$96 million.

The report asked Cohab for information on the exact amount of properties to be auctioned and the total amount expected to be collected. There was no response. However, it was possible to verify such data through the auction notices on the government’s website, in ongoing bids. But the numbers may differ from the real, since it was up to us to find out without the technical instruction of the housing company’s servers.

We also questioned Cohab about the destination of the money for the auction, which ends on October 1, 2021. We also received no response.

The expectation is that the amount will supply the State Housing Fund, public savings fund financing housing programs in Minas. However, the money may fall into the government’s single fund, as is currently the case with resources from the State Fund for the Eradication of Misery. A considerable chunk of it goes to other areas.

Contradiction or project?

Meanwhile, there are 496,000 homes in Minas Gerais for the entire population to have their own home or with decent conditions. This is the so-called housing deficit, calculated by the João Pinheiro Foundation (FJP). It corresponds to the lack of housing in a location, shows the lack of comfortable housing for families, among other issues.

One of Cohab’s goals is to provide housing for those who do not have it or those residing in precarious locations. In other words, stop the housing deficit. As stated on the company’s website, one of its actions is the allocation of land to city halls so that they can promote housing policies.

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The company says, in the notices, that the intention of the auctions is “to raise funds for the Company, also avoiding invasions, expenses with notification of cleanings, fencing, IPTU collection, in addition to the fact that there is no provision for the use of the properties for purposes housing”.

This is not what evaluates Eduardo Bittencourt, Professor of Architecture at the Pontifical Catholic University (PUC-Minas).

“Governments have an important stock of real estate. They can allocate them for housing purposes. This movement may have some argument for fiscal reasons, but it does not face the housing problem”, says the architect. “Cohab’s role is not to provide money to the State at any cost. It should help the municipalities in their policies”, he concludes.

Source: BoF Minas Gerais

Edition: Rafaella Dotta

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