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Lula announces housing solution in Brazilian favela in Sao Paulo

Brasilia, June 26 (Prensa Latina) President Luiz Inacio Lula da Silva is visiting the Brazilian state of Sao Paulo to announce a final solution for the families of Favela do Moinho, a large informal urban settlement with self-built housing.

Official sources confirmed that the event, attended by federal, state, and community representatives, marks a milestone in the long struggle for the right to housing in the heart of the territorial division.

During the ceremony, it will be announced that each beneficiary family will receive an Individual Letter of Credit for up to $46,300, fully subsidized by the state: $33,300 from the federal government and $13,000 from the Sao Paulo government.

While searching for permanent housing, families will also have access to monthly rental assistance of $222, along with transportation for moving and technical support for disassembling furniture.

Currently, about 900 families live in Moinho Favela, whose occupation began in the 1980s and 1990s by workers from the former Moinho Central factory; since then, residents have faced precarious conditions, recurring fires, and threats of eviction.

The community has been marginalized for decades, despite its central location.

In 2024, the state government proposed revitalizing the area by creating an urban park and integrating it with the future Bom Retiro metro station; the plan included the removal of the squatters.

In April, authorities began demolitions and stepped up pressure on residents to leave the land, whose images of collapsed homes and the use of bombs against families sparked public outrage and complaints of institutional violence.

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