Chapter 2

Urban Policy

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Article 182. The urban development policy carried out by the municipal government, according to general guidelines set forth in the law, is aimed at ordaining the full development of the social functions of the city and ensuring the well-being of its inhabitants.

Paragraph 1. The master plan, approved by the City Council, which is compulsory for cities of over twenty thousand inhabitants, is the basic tool of the urban development and expansion policy.

Paragraph 2. Urban property performs its social function when it meets the fundamental requirements for the ordainment of the city as set forth in the master plan.

Paragraph 3. Expropriation of urban property shall be made against prior and fair compensation in cash.

Paragraph 4. The municipal government may, by means of a specific law, for an area included in the master plan, demand, according to federal law, that the owner of unbuilt, underused or unused urban soil provide for adequate use thereof, subject, sucessively, to:

  1. compulsory parceling or construction;
  2. rates of urban property and land tax that are progressive in time;
  3. expropriation with payment in public debt bonds issued with the prior approval of the Federal Senate, redeemable within up to ten years, in equal and successive annual installments, ensuring the real value of the compensation and the legal interest.

Article 183. An individual who possesses an urban area of up to 250 square meters, for five years, without interruption or opposition, using it as his or as his family’s home, shall acquire domain of it, provided that he does not own any other urban or rural property.

Paragraph 1. The deed of domain and concession of use shall be granted to the man or woman, or both, regardless of their marital status.

Paragraph 2. This right shall not be recognized for the same holder more than once.

Paragraph 3. Public real estate shall not be acquired by prescription.

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