President Luiz Inácio Lula da Silva visited the Favela do Moinho in central São Paulo on 26 June and signed a federal-state agreement to relocate roughly 900 families from the area. Each household will receive up to R$250,000 to purchase a new home—R$180,000 funded by the federal government and R$70,000 by the state—along with a temporary rent allowance of R$1,200 while transactions are completed. The measure, carried out through the Compra Assistida modality of the Minha Casa Minha Vida programme, postpones the transfer of the Union-owned land to the state until all residents have been rehoused, after which the site is slated to become a public park. On 8 July, news outlet Metrópoles reported that preparations for Lula’s visit had been negotiated with the Associação da Comunidade do Moinho, whose president, Alessandra Moja Cunha, is the sister of Leonardo Monteiro Moja—an alleged leader of the Primeiro Comando da Capital (PCC) drug faction, imprisoned since August 2024. Court documents cited by the press say the NGO’s headquarters, where Minister Márcio Macêdo met community representatives two days before the event, was used in 2023 to store cocaine, crack and marijuana. The revelations triggered political fallout in Brasília. Deputy Kim Kataguiri (União-SP) filed a request for Congress to summon Macêdo to explain the government’s dealings with the association, while Deputy Otoni de Paula (MDB-RJ) lodged a petition with the Prosecutor-General’s Office seeking an investigation of Lula and First Lady Rosângela da Silva. Macêdo said the talks were strictly about the housing programme and that engagement with local leaders is standard practice. The presidential press office stated that security protocols were followed and that the agreement remains focused on guaranteeing dignified resettlement for the favela’s residents.