São Paulo Zoning: State Court Strikes Down Zoning Map Changes, but Practical Effects Remain on Hold

The São Paulo State Court of Justice (TJSP) partially granted a direct action for the declaration of unconstitutionality challenging two 2024 laws that amended the city’s zoning rules and declared unconstitutional certain zoning map changes introduced by one of them. In practice, the city’s zoning map reverts to the one established by Municipal Law No. 18,081/2024. Before celebrating or worrying, however, it is worth understanding what changes—and, more importantly, when.

The case, Direct Action of Unconstitutionality No. 2257600-87.2025.8.26.0000, challenged two bills that amended the city’s zoning following the interim revision of the Strategic Master Plan. Law No. 18,081/2024 expanded the influence areas of the Urban Transformation Structuring Axes (ZEUs). Law No. 18,177/2024, enacted months later, was intended only to correct maps and adjust wording, but ultimately revised the ZEU boundaries again and reclassified blocks and lots throughout the Municipality.

The Court distinguished between the two laws. It upheld Law No. 18,081/2024 because the ZEU expansion had already been included in the original bill and discussed during the public hearings held throughout the legislative process. By contrast, the substantive zoning map changes introduced by Law No. 18,177/2024 were declared unconstitutional because the original bill addressed only limited adjustments and was significantly altered by late-stage legislative amendments, without renewed public participation and without the required substantive connection between what had been debated and what was ultimately approved, in violation of due legislative process. As a result, the zoning map established by Law No. 18,081/2024 is reinstated and the changes introduced by Law No. 18,177/2024 are set aside.

The decision, however, does not yet have practical effect. Before the merits ruling, Brazil’s Federal Supreme Court (STF) had already stayed the effects of a preliminary injunction issued by the TJSP that prevented the issuance of permits under the challenged rules, given the risk of disrupting citywide urban licensing. That stay remains in force until the case becomes final. For now, the Municipality continues to issue permits, licenses and certificates based on Law No. 18,177/2024.

By majority vote, following the prevailing opinion authored by Appellate Judge Francisco Loureiro, the Court modulated the temporal effects of its decision: the declaration of unconstitutionality takes effect as of publication of the judgment, while administrative acts pending a decision or carried out while the invalidated rules were in force remain protected. This protection is therefore not limited to acts predating the judgment; it also applies while Law No. 18,177/2024 continues to have practical effect under the STF stay.

In practice, nothing changes today in the permitting process: filings may still rely on the zoning map under Law No. 18,177/2024 while the STF stay remains in force. Once the stay is lifted, the zoning map established by Law No. 18,081/2024 will govern the properties affected by the changes declared unconstitutional, while administrative acts covered by the Court’s modulation of effects will remain protected.