OODC — Paid Building Rights Grant

The Paid Building Rights Grant (Outorga Onerosa do Direito de Construir, or OODC) is the instrument set out in Brazil’s City Statute (Law 10,257/2001, Articles 28 to 31) that lets municipalities authorize a landowner to build beyond the basic floor-area ratio (CA básico), in exchange for a financial payment to the city. It is also known as "created buildable area" (solo criado).

• Basic floor-area ratio (CA básico): the multiple of the lot’s area that can be built free of charge. In Florianópolis, the basic ratio is 1 for most residential zones, under Complementary Law 482/2014 as amended by Complementary Law 739/2023. This means that on a 500 m² lot, 500 m² of computable floor area can be built with no extra payment.
• Maximum floor-area ratio: the Master Plan sets a maximum ratio for each zone. To build between the basic and the maximum ratio, the developer pays the OODC.
• Calculating the payment: the amount is calculated using a municipal formula, generally based on the land’s assessed value, the area exceeding the basic ratio, and a reduction factor. In Florianópolis, this formula is set out in Complementary Law 482/2014.
• Use of funds: revenue collected through the OODC must be applied exclusively to urban development: social housing, community facilities, environmental protection, and green areas (Article 31, Law 10,257/2001).
• Impact on project cost: the OODC is one of the factors that raises land and final product costs in high-density zones. Developers building up to the maximum ratio factor this cost into the price per square meter offered to buyers.

In Florianópolis, the OODC is especially relevant in central, high-density neighborhoods such as Agronômica, Trindade, and Carvoeira, where lots have a maximum ratio above 3. Investors buying land in these areas for development should factor the grant’s cost into their feasibility analysis, since it can represent 5% to 15% of the land value depending on the ratio pursued.