The Public Prosecutor's Office of São Paulo (MP-SP) has initiated legal action against the São Paulo city government, led by Mayor Ricardo Nunes (MDB), over alleged fraudulent practices in social housing construction.
The lawsuit targets construction companies accused of improperly utilizing tax exemptions designated for social interest housing (HIS, HMP, EHIS, EHMP, and EZEIS). The MP-SP is seeking a court order to compel the city to strengthen its oversight, transparency, and control mechanisms for these publicly incentivized housing projects.
Key demands in the legal filing include measures to prevent construction irregularities, improve property traceability, and halt the misuse of social housing units for short-term rentals. The prosecutors have requested an urgent court ruling and proposed a daily fine of R$10,000 for each day the city government fails to comply with the judicial order.
This legal move underscores growing concerns about the integrity of social housing programs in Brazil's largest city, aiming to ensure that public incentives fulfill their intended purpose of providing affordable housing for low-income residents.