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This study examines the transformative impact of the Special Zones of Social Interest (AEIS-1) implemented in Diadema, São Paulo, in 1994, as an innovative urban policy tool in Brazil. Rooted in the principle of the social function of property established in the 1988 Federal Constitution, the research analyzes the development of social interest housing projects (HISs) led by housing movement associations. The study adopts a mixed-methods approach, combining primary data from local housing associations and the municipal government with geospatial analysis. The results reveal that between 1996 and 2013, over 20 LHISs were successfully established, directly benefiting approximately 2000 low-income families. These projects utilized a self-construction model financed entirely by families, overcoming the lack of public investment. The findings highlight the critical role of housing associations in organizing, planning, and implementing urban housing initiatives. This model not only addressed housing deficits but also fostered community resilience and inclusivity. By demonstrating how grassroots organizations can drive urban transformation, this research underscores the potential of participatory practices in advancing spatial justice and the right to the city. The Diadema case offers valuable insights for cities facing similar challenges, advocating for equitable and democratic urban development strategies.
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