On May 16, 2018, the Court of Justice of the State of São Paulo revoked an interim injunction granted on February 26, 2018, in the context of the Direct Unconstitutionality Action (“ADIN”) filed on January 12, 2018, by the Federal Attorney's Office. The ADIN was filed against the mayor of the Municipality of São Paulo and the president of the City Council of the Municipality of São Paulo, alleging the unconstitutionality of Article 162 of Municipal Law No. 16,402, dated March 22, 2016, of the Municipality of São Paulo (Law of Parceling, Use and Land Occupation— "Zoning Law"), stating that it violates the State Constitution of São Paulo and the principle of non-retroactivity.
Article 162 of the Zoning Law deals with the issue of "Protocol Right", that consists of applying the law in force at the time when the project application was filed, which would ensure legal certainty even if the law was modified during the process of approval.
The revoked injunction had been granted based on a specific issue raised by the Federal Attorney's Office related to the protection of the environment, requiring that real estate development projects located in the "ZEPAM" (Special Areas of Environmental Protection) have to follow best practices for environmental protection, even if such practices are provided for by a law issued after the date of the application.
With said injuction revoked, entrepreneurs and other interested parties in the Real Estate sector, that had their projects filed before the Zoning Law, may exercise the Protocol Right, at least until a definitive judgment is made on the ADIN.