RUIS – Urban Renovation with Social Inclusion

RUIS – Urban Renovation with Social Inclusion

Peru
Organization type: 
nonprofit/ngo/citizen sector
Budget: 
$100,000 - $250,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

The project consists in a sustainable model aimed at reducing poverty and recovering old and historic neighborhoods on the basis of Legal Empowerment of the Poor (LEP).

It shows that old social communities, following certain incentives, are the only ones who provide the most in urban renovation processes. Capitalization and renovation with no need for eviction! The solution is therefore transferred to the current neighbors (possessors of property).

In urban, impoverished and overcrowded spaces, property rights are atomized and have no exchange value. Properties, abandoned by their original owners, turn into an actual opportunity for thousands of families to be empowered and committed, as well as to fulfil their duties and acquire a renovated home.

About Project

Problem: What problem is this project trying to address?

Every family (elders, adults and children) who lives in historic centres and old neighborhoods under impoverished conditions is benefited from the transfer of property rights. This way, we combat poverty. The project is critical as it presents an economically sustainable solution in order to develop an urban renovation process which strengthens neighborhoods, generates temporary work, develops permanent economic corridors, empowers neighbors and takes advantage of useless spaces. This way, the city benefits from our project.

Solution: What is the proposed solution? Please be specific!

“Neighbor-owners and renovated neighborhoods” In Peru, urban renovation has always gone hand in hand with evictions. The huge potential of social capital in old neighborhoods and historic centres has been underestimated (their monumental features make renovation more complex and expensive). The RUIS sets a new path for the transfer of property rights: it claims the legal concept of “abandonment of property”, as set forth in the Civil Code. In economic terms, this is an attractive alternative which allows both private and public financing and encourages international cooperation. Its sustainability is guaranteed by a revolving fund (trust), which gives us the possibility to expand benefits. The RUIS gathers key actors and triggers human capital by empowering neighbors and making them responsible for the performance of project-related activities. Also, it provides solutions to former owners’ problems, promotes leadership among local and provincial authorities, seeks commitment of public and private financial institutions, encourages private real estate investment and collects funds’ interest for restoration of historic heritage. Furthermore, the RUIS presents a multidisciplinary and integral approach as private property and public spaces commingle with the provision of services which help to afford a better quality of life (security, transportation, environment, etc.) and which economically activate the area (tourist, gastronomic and commercial hubs, etc.). The proposed architecture integrates into the historic surroundings, respecting their space.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Between 2004 and 2006, the Rímac Renace Project was implemented with the support of the UNDP. The following results were obtained: a study on the types of space usage was performed, +90 houses were identified, +900 families were included in the program, +45 housing associations were set up, +10 transfer agreements were executed with former owners, 30 architectural technical datasheets were produced for monumental and non-monumental properties and 10 preliminary projects were developed. The methodology used was included in the municipal regulation above, as well as in the federal law and its respective rules, which are in effect as from November 2010. At an architectural level, the RUIS could not be implemented in the Rímac district yet. However, with the new municipal decisions, both at district and metropolitan levels, a new opening has been developed, which is key to drive the application of the methodology through law. The Rímac Renace project and the RUIS methodology have shown that, by building and promoting trust in and among neighbors and by generating property expectations, synergies can be created between former owners and current occupants (which are opposed by nature). These synergies enable a renovation process from which both sectors can benefit and which, in turn, will generate an exemplary urban transformation, by recovering urban spaces and reactivating ‘dead’ capital.
About You
Organization:
Eficiencia Legal para la Inclusión Social
About You
First Name

Mariana Jimena

Last Name

Alegre Escorza

About Your Organization
Organization Name

Eficiencia Legal para la Inclusión Social

Organization Phone

(51-1) 2214218

Organization Address

Alberto Lynch 170, int. 404, San Isidro, Lima

Organization Country

, LI

Country where this project is creating social impact
How long has your organization been operating?

1‐5 years

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Innovation
What stage is your project in?

Operating for 1‐5 years

Share the story of the founder and what inspired the founder to start this project

Horacio Gago Prialé, an attorney with a doctoral degree in Law and former chief investigator of the Institute of Freedom and Democracy (ILD), is convinced that access to property and to loans activates social capital and breaks the vicious circle of poverty. He believes it is essential to work towards contractual and legal agreements based on reality.

The absence of intervention in consolidated urban areas, as well as the myth of perpetual poverty over the inhabitants of vulnerable areas, encouraged him to carry out studies, with the support of the UNDP, in order to learn about the status of property rights and their precariousness or dissipation through time. The Rímac district’s historic centre was chosen as intervention area, where the Rímac Renace project (Rímac Reborn, in English) was executed. The centre is part of the Historic Centre of Lima, recognized by the UNESCO as World Heritage.

This methodology, developed together with a multidisciplinary team (lawyers, architects, urban planners, communicators, etc.), was the basis for the issuance of Municipal Regulation No. 121-2006-Rímac, Law No. 29415 and its related rules (DS 11-2010-VIVIENDA), to be applied nationwide, which are connected with the Urban Renovation with Social Inclusion project.

Social Impact
How many people have been impacted by your project?

1,001 - 10,000

How many people could be impacted by your project in the next three years?

1001‐10,000

What barriers might hinder the success of your project and how do you plan to overcome them?

Experience reveals that the commitment of the respective authorities is absolutely essential. Partnerships must be created with important state institutions, such as the Office of Public Records, in order to register new owners. The financial mechanism must be strengthened in order to facilitate contributions and to guarantee their distribution to a larger number of beneficiaries. For example, the FOMUR (Municipal Fund for Urban Renovation) must be used for the purposes it was created. Further, we must enhance our relations with the Ministry of Culture, due to the fact that this office protects the monumental value of historic properties.

How will your project evolve over the next three years?

We will show the efficiency of the project by developing the methodology above in the Rímac and Lima Districts (historic centre), the authorities of which have affirmed their commitment to the RUIS project. This will then enable the performance of the project in other historic centres and old neighborhoods of Lima, as well as in other Peruvian cities, which, in turn, will enlarge the human, social, economic and monumental capital recovered.

Sustainability
For each selection, please explain the financial and non-financial support from each

Individuals: financial support through the payment of social loans taken, as well as through the payment of municipal duties (taxes) and the respect and care for their renovated neighborhood.

Foundations: financial and non-financial support for activities related to neighbors’ empowerment and to monument restoration works.

NGOs: non-financial support for the works with neighbors' associations of the intervention areas.

Companies: financial entities’ support through the offer of social loans and the financing of real estate projects which generate economic surplus. Local companies and institutions will activate the local economy by investing in the renovated area.

Regional Authorities: support as promoters of inclusive urban renovation.
Federal Authorities: support as articulators between public institutions which facilitate renovation: the Ministry of Housing (through housing bonds) and the Ministry of Culture (through coherent intervention in monumental lots, for example).

District and Provincial Authorities: support as promoters of urban renovation, registrars of beneficiaries, leaders in the abandonment administrative processes and designers of the urban renovation plan in the intervention area.

How do you plan to grow and/or diversify your base of support in the next three years?

It is necessary to financially guarantee the RUIS methodology in order to ensure its sustainability. To this end, a trust will be created, as it offers adequate protection so that the purposes for which contributions are made (both financial and non-financial) are not diverted.

Instructions applied to the trust guarantee the following: former owners receive their financial compensation, beneficiaries receive public contributions, plots are assigned to the real estate agent for their development, financial institutions make their contributions, contributions for public space are paid, and contributions received from international cooperation are guaranteed.

Moreover, architectural proposals (as we work by geographical nodes) allow for the use of spaces in a mixed manner (housing and business) and generate surplus units which are put on sale. Income generated (payable to the local government) is included into the fund to advance new interventions and to continue offering benefits to many families and to the city through the implementation of the RUIS.

Collaboration
Please select your areas of intervention in the home improvement market

Financing, Design, Property rights, Income generation, Urban development, Citizen/community participation, Public policy.

Is your innovation addressing barriers in the home improvement/progressive housing market? If so, please describe in detail your mechanisms of intervention

La RUIS implica una fusión en técnicas constructivas dirigidas a diversas funciones (vivienda, comercio, espacios comunes, etc.) y en cuanto a diferentes características (restauración monumental, construcción de unidades nuevas respetando los parámetros del barrio y del contexto -histórico de ser el caso-). Al mismo tiempo recoge la realidad, en cuanto al uso del espacio y propone modelos de vivienda adaptables a las necesidades de los habitantes de los predios intervenidos (a nivel familiar y en cuanto a la potencialidad de negocios familiares).

Are you currently collaborating with private companies, or have you partnered with private companies in the past? With which companies?

Cuando Rímac Renace estaba funcionando se tuvo contacto con entidades financieras y con empresas emblemáticas del distrito (ejemplo: importante compañía de refrescos) para involucrarlas en la renovación urbana partiendo de la premisa de que es un proceso integral y que beneficiará a todos.

Please describe in detail the nature of the partnership(s)
Select the unit(s) with which the partnership was formed

Corporate social responsibility department.

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