What Is Urban Renewal? Conditions for Urban Renewal

What is urban renewal, and how is it carried out? These are questions on many people's minds today. Urban renewal (kentsel dönüşüm) is the process of improving areas that, whether because of their ground conditions or their infrastructure, do not allow for a healthy and safe urban life. Within this process, hazardous buildings are demolished and replaced with newer, sound, earthquake-resistant structures built with modern technology.

Urban renewal can address part of a city or, in more extensive projects, a large section of it, in a systematic way within the framework of a project. The work also takes into account risks such as damage to neighbouring buildings during demolition. Urban renewal came to prominence worldwide particularly after the First and Second World Wars, when the rebuilding of cities destroyed in the fighting was approached in this way. In Turkey, the concept became far more present in everyday life with the publication of Law No. 6306 on the Transformation of Areas under Disaster Risk (6306 sayılı Afet Riski Altındaki Alanların Dönüştürülmesi Hakkında Kanun). Given that much of Turkey lies in first- and second-degree earthquake zones, this is a matter of serious importance.

Law No. 6306 introduced important provisions that directly affect daily life, such as the majority required to decide on the demolition of buildings under disaster risk and the procedure for identifying risky buildings (riskli yapı). Certain conditions must be met before urban renewal can go ahead. First, an institution authorised by the Ministry of Environment, Urbanisation and Climate Change (Çevre, Şehircilik ve İklim Değişikliği Bakanlığı) must take core samples from different points of the building, particularly from its load-bearing columns. Based on this assessment, an expert report must establish and confirm that the building is risky. This is one of the most important conditions of urban renewal. The report is served on the owners of the units in the risky building through the relevant Land Registry Directorate (Tapu Müdürlüğü). Each unit owner may then object to the risky building report within 15 days. If no objection is made, the report becomes final. If an objection is filed, it is decided by a commission made up of four academics and three Ministry officials appointed by the Ministry. In addition, building owners may file an action for annulment before the Administrative Court (İdare Mahkemesi) within 60 days of being notified of the outcome of their objection to the risky building report. If the building is not demolished within the period given, an additional period of not less than 30 days is granted. At the end of that period, the building is demolished by the Ministry of Environment, Urbanisation and Climate Change. After demolition, the unit owners may have a new building constructed. It is also possible to leave the plot as land. Either way, a two-thirds majority is required.

Under the 2022 urban renewal rules, once a demolition decision has been made, rent assistance can be received for 18 months. The amount is set on a province-by-province basis. If you would like to know the rent assistance rate for the province you live in, you can consult the Financial Support page of the Ministry of Environment, Urbanisation and Climate Change. This is a broad topic, and the table at https://webdosya.csb.gov.tr/db/altyapi/icerikler/2021-yili-k-ra-yardimi-tablosu-20210616111552.pdf lets you review the figures for every province. If you would like a risky building assessment carried out on the building you live in, you need to apply to one of the institutions or organisations authorised by the Ministry.

What Are the Requirements for Urban Renewal?

The requirements for urban renewal in 2022 are something many people want to know about, because it is just as important to understand the conditions as it is to understand what urban renewal is. The Housing Development Administration of Turkey (Toplu Konut İdaresi Başkanlığı, TOKİ), which operates under the Ministry of Environment, Urbanisation and Climate Change, sees urban renewal as an opportunity for Turkey. Within the powers and duties granted to it by law, it works in cooperation with local authorities. Urban renewal projects begin with preliminary protocols signed following applications by local authorities and the related technical assessments. Following amendments to the legislation, urban renewal work can also be carried out under Laws No. 6306 and 6292 in areas where TOKİ has been authorised by the Ministry.

Under the 2022 rules, a municipality making a request submits the following documents in addition to its letter of request:

An information report and map sheets on the area where the project is to be carried out
The municipal council decision authorising the mayor
A current base map with the boundaries marked, prepared digitally in national coordinates
The existing zoning plan with the boundaries marked, prepared digitally in national coordinates
A map showing the character and use of the buildings
Photographs of the area
Digital title deed (tapu) records
Satellite imagery

Through urban renewal, TOKİ aims to improve quality of life and solve a wide range of problems. If you want to benefit from urban renewal, you should also research and inform yourself in advance about points such as the following:

The owners should plan what will be done after the building is demolished.
If the plot is to be given to a contractor, the choice of company should be made carefully.
The state provides support for urban renewal. However, if you take out a loan, you cannot receive rent assistance.
An urban renewal application can be made by any one of the property owners.
If an objection is made to the risky building report, a commission is formed. A decision is made following its review.

It is also advisable to be familiar with matters such as the two-thirds rule. The more you learn about the subject before applying, the more you can avoid regrets later on.

The assistance given to owners and tenants of risky buildings is another important aspect of urban renewal. This mainly takes the form of loans and rent assistance, and you should choose whichever suits you best. Among the requirements for urban renewal, you also need to know the loan conditions. The loan can only be taken in Turkish lira. The property must be registered as a residence (mesken) on the title deed. The loan can only be used to rebuild the risky building or to strengthen the existing building, and it can only be used by private individuals. A mortgage on the home to be renewed or rebuilt is also required. Although a guarantor is not a condition, the bank may ask for one if it deems it necessary. There are many banks you can choose from, including:

Akbank T.A.Ş.
Şekerbank T.A.Ş.
Türkiye Vakıflar Bankası T.A.O.
Yapı ve Kredi Bankası A.Ş.
T.C. Ziraat Bankası A.Ş.
Albaraka Türk Katılım Bankası A.Ş.
Alternatif Bank A.Ş.
Denizbank A.Ş.
QNB Finansbank A.Ş.
Türk Ekonomi Bankası A.Ş.
Türkiye Finans Katılım Bankası A.Ş.
Türkiye İş Bankası A.Ş.
Türkiye Garanti Bankası A.Ş.
Türkiye Halk Bankası A.Ş.
ING Bank A.Ş.
Kuveyt Türk Katılım Bankası A.Ş.

Under the 2022 rules, you should also know which banks you can borrow from and what their conditions are. There are also certain criteria for a building to be included in urban renewal. If your home has reached the end of its economic life, has deteriorated, is not earthquake-resistant, or you simply want it to go through urban renewal, you can apply to the institutions authorised by the Ministry.

What Documents Are Required for an Urban Renewal Application?

When people ask how urban renewal works, one of the most frequent questions is which documents are required. If you want to apply for urban renewal for the building you live in, you will need to prepare a number of documents.

Missing documents will delay the process, so the first step is to make sure they are complete. In outline, the documents are as follows:

A photocopy of the Turkish lira demand deposit account book at T.C. Ziraat Bankası belonging to the rights holder or their proxy
A form confirming that the building has been demolished, bearing a wet signature and stamp
A signed and stamped address information report showing the old and new addresses, confirming that the owner was resident in the building identified as risky on the date its building identification number was issued, and that they have vacated it. This can be obtained from the provincial or district Directorate of Population and Citizenship Affairs (Nüfus ve Vatandaşlık Müdürlüğü).
A water, natural gas, electricity or landline-based telephone/internet bill, registered in the owner's name via ARAAD.net and matching the address in the risky building report, for any one of the three months before or after the date on which the building identification number was issued for the risky building
An up-to-date title deed record and a photocopy of the title deed for the property
The risky building assessment report, which must be obtained from a company authorised by the Ministry
A photocopy of your identity card
An application petition bearing a wet signature

If you are looking into having your building assessed for risk, you need to apply to an authorised institution or organisation in the area where you live. Any one of the property owners in the building may apply in person or through a legal representative. A majority decision is not required at the application stage.

Once the assessment is complete and the reports have been issued, they are sent to the Provincial Directorate of Environment, Urbanisation and Climate Change (Çevre, Şehircilik ve İklim Değişikliği İl Müdürlüğü). The reports are then reviewed, and if there is an error, they are returned to the authorised organisation. If no error is found, the Land Registry Directorate is notified and a "risky building" annotation (şerh) is entered on the title deed record.

The Land Registry Directorate then serves notice on the building's owners. If you want to object to the risky building finding, you will again need to prepare a number of documents.

Here too, missing documents can delay the process. The documents are as follows:

The notice sent by the Land Registry Directorate
A photocopy of the identity card of the objecting property owner
A photocopy of the title deed showing that they own the property in the risky building
A petition addressed to the Provincial Directorate of Environment, Urbanisation and Climate Change

Once these are complete, the objection can be filed. If the objection is accepted after review, the Land Registry Directorate is notified again. If it is rejected, a demolition decision is issued for the risky building.

How Is a Risky Building Identified in Urban Renewal?

How is a risky building assessment carried out? This question is frequently asked by people who want to apply for urban renewal for the building they live in. The persons and institutions that can carry out a risky building assessment are as follows:

The Ministry of Environment, Urbanisation and Climate Change
Municipalities, within municipal and adjacent area boundaries; special provincial administrations outside those boundaries; in metropolitan cities, metropolitan municipalities and, where authorised by the Ministry, district municipalities within metropolitan boundaries
Public institutions and organisations, universities, and companies at least 40% of whose capital belongs to public institutions and organisations, licensed by the Ministry
Relevant non-governmental organisations
Building inspection firms and laboratories holding a permit from the Ministry
Firms that have duly registered their offices with the chambers of geological, geophysical and civil engineers

These are the institutions and organisations to consider when deciding where to apply for a risky building assessment. To have a building assessed, you must apply to one of them. The required documents are listed above, and you need to submit them on time if you do not want the process to drag on. If you are going to apply for a risky building assessment, it is advisable for the owners to first discuss the matter among themselves and become well informed. Meeting with contractors and lawyers also helps you get professional support. In this way, regrets can be avoided later on.

When an application for an assessment is made to one of these institutions or organisations, a team visits the address to carry out an inspection. During this process, technical examinations are performed and a risky building assessment report is prepared. Core samples are taken from the building's columns to determine the strength of its concrete. The diameter, number and spacing of the reinforcing bars in the load-bearing columns and shear walls are also determined. A measured survey of the building is drawn up and a geotechnical (soil) survey report is produced. All of this is carried out in accordance with the regulations, and the report determines whether or not the building is risky.

The reports are approved by the Provincial Directorate of Environment, Urbanisation and Climate Change with jurisdiction over the property. A "risky building" annotation is then entered on the Land Registry Directorate's record. People also often ask how many days it takes for a risky building report to be issued. Once the process is complete, the annotation entered at the Land Registry Directorate is notified to the rights holders, and the 15-day period runs from the date of notification. Those considering urban renewal also want to know in advance when a risky building will be demolished. The building must be vacated within 60 days of the date of the report. People then ask whether homes can be built in a risk area. Where the integrity of the project area requires it, buildings can be demolished and new ones built under an agreement reached with the owners.

What Percentage Is Required for Urban Renewal?

What percentage of owners is needed for urban renewal? This is one of the first questions asked by people who want to go ahead with it. In a building held under condominium ownership (kat mülkiyeti), when the owners of independent units or the co-owners of a property need to have the building demolished because it is risky, a certain level of approval from the co-owners or unit owners allows decisions to be made over the property as a whole: for example, what will be built in its place, whether the plot will be left empty, or whether it will be given to a contractor. This is why the required percentage is one of the most frequently asked questions in urban renewal. The answer is a two-thirds majority. This rule was introduced by Law No. 6306. It is therefore essential to discuss the matter in detail with the other owners and to be fully informed before applying.

There are, however, some points you need to know about the required percentage. When it comes to demolishing a building that is located in a risk area or has been identified as a risky building, it does not matter whether the co-owners agree. For buildings in a risk area, or buildings outside a risk area that are structurally sound but have nonetheless been ordered to be demolished, the co-owners have no say in the demolition even if they are unanimous. Such buildings must be demolished. The two-thirds majority comes into play after this point: it applies to deciding what will be built in place of the demolished building, or to the decisions taken after demolition.

Once demolition is complete, the building becomes a plot of land. The owners come together to decide how they want to use it. The unit owners may build on the plot themselves. They may also give it to a contractor under a flat-for-land agreement (kat karşılığı). They may leave the entire plot as land or sell it. If all the owners reach a joint decision, there is no problem, and the chosen method is put into practice. The two-thirds rule applies when the co-owners cannot agree. If no unanimous decision can be reached on what to do, the decision taken by the two-thirds majority is legally binding on the remaining one-third as well. In this system, the two-thirds majority refers to ownership shares. Owners who together hold at least two-thirds of the shares can take the decision.

What Happens If Unit Owners Cannot Reach a Two-Thirds (2/3) Majority in Urban Renewal?

What happens if a two-thirds majority cannot be reached in urban renewal? People who want to apply to institutions or organisations for urban renewal have many questions beforehand, and the two-thirds majority is one of the main ones. Although it is often thought to be required for demolition, it actually applies to the stages after demolition. A single owner's application is enough to have a building assessed for risk. If the assessment confirms that the building is risky, the necessary procedures begin. After demolition, the votes of all unit owners are sought for steps such as:

Signing a construction contract in exchange for land shares,
Selling the plot to a third party.

If unanimity cannot be achieved, the value of the building is determined before demolition by a licensed valuation firm registered with and active under the Capital Markets Board (Sermaye Piyasası Kurulu), and all owners are called to a meeting at the request of one owner. At this meeting, a decision is taken by a two-thirds majority of ownership shares on matters such as:

Giving the project to a contractor under a construction contract in exchange for land shares,
Merging the parcels,
Carrying out the project on an individual basis, jointly, or on a city-block basis,
Rebuilding in line with urban renewal.

The decision is then signed by the owners. People also frequently ask what happens to owners who do not sign. The decision is served through a notary, by one of the owners, on those who did not attend the meeting or did not agree with the decision. They must accept it within 15 days of notification. If they do not, the land shares relating to their independent units are sold by auction to the other co-owners who have reached an agreement, at a price not lower than the market value determined by the Ministry. If the shares cannot be sold to the co-owners, they are registered ex officio on the title deed in the name of the Treasury, with their market value paid by the Ministry. This is an important point to bear in mind when considering what happens if a two-thirds majority cannot be reached.

Such shares are deemed allocated to the Ministry, to be used under the agreement reached, or are transferred to an administration deemed appropriate by the Ministry or to TOKİ. The process is then carried out in line with the agreement reached by the co-owners' decision. For shares sold at auction, rights such as the following continue to attach to the sale proceeds after the sale:

Precautionary attachment,
Mortgage,
Attachment and usufruct rights.

Every shareholder should be aware of these points when asking whether unanimity is required in urban renewal. If at least a two-thirds majority is not reached within 30 days of notice being served on the owners, the Ministry, TOKİ or the municipality may proceed with urgent expropriation.

Many people also want to know about the rights of the one-third minority in urban renewal. Under Article 6 of Law No. 6306, areas subject to implementation in reserve building areas and risk areas must first be assessed by their owners. Before a demolition decision is taken, steps such as rebuilding or selling shares are decided by a two-thirds majority. If no agreement can be reached, the state is authorised first to expropriate and then to rebuild. In the annulment actions brought against Law No. 6306, the Constitutional Court (Anayasa Mahkemesi), in its composition at the time, did not find the sale of the one-third minority's shares to be unconstitutional. Therefore, where the rights of the one-third minority are concerned, the sale of the minority's units may be ordered. However, because the decision results from a two-thirds majority, those in the minority can file a lawsuit challenging the valuation of their independent units.

How Many Flats Are Given per Square Metre?

How many square metres does a contractor require per flat? Many people ask this question today. Both landowners and those who want to give their land to a contractor after demolition under urban renewal often ask how many flats they will receive. The number of flats is directly proportional to the size of the plot. Flat-for-land agreements remain widespread in Turkey. They are particularly popular with people who own land but have no construction expertise, or who cannot afford to finance construction themselves. They are also often used by those looking for a quick, practical solution. When it comes to how many flats you will receive for a given plot, you should know the following:

Under this arrangement, you contribute only your land, without paying any construction costs.
The contractor makes an investment without paying for the land, while the landowner becomes a homeowner.
Certain procedures apply when the parties reach an agreement, and both sides act under a contract.
The location of the plot affects the number of flats you will receive.

You should also know the answer to the question of how many flats can be built on a 1,000 m² plot, as this will help you make better-informed decisions. The number of flats that can be built depends on the floor area ratio (KAKS, or emsal) specified in the zoning status certificate (imar durum belgesi). If the ratio is 1, a 1,000 m² plot allows 1,000 m² of floor area, which means around 10 flats. If the ratio is 2, the floor area rises to 2,000 m² and, proportionally, to around 20 flats. If the plot is well located, the landowner's share will be higher. Shares are generally split 50% to 50%. In a good location, however, the landowner's share can rise to as much as 70%. In a poor location, on the other hand, it can fall to 25–30%. There are therefore no fixed figures. For detailed information, you should speak directly to the contractor.

The first thing to do is carry out market research, so that you understand the general picture. Knowing the strategic features of your plot's location, and how important that location is likely to become in the future, will also help you negotiate a better deal. It is also helpful to research the contractor before signing a contract, and to ask questions such as how many flats your plot will yield during your meetings.

How Is an Urban Renewal Building Handed Over to a Contractor?

Urban renewal attracts the interest of more and more citizens every day, and how to hand an urban renewal building over to a contractor is one of the topics people research most. If you have decided on urban renewal and want to give the plot to a contractor after demolition in exchange for flats, you should consult a contractor that provides this service.

As for whether you have to pay the contractor in urban renewal: the costs of a risky building assessment are calculated on the basis of fees set by the institutions, depending on the size of the building and the extent of the assessment required. The cost of the report is borne by the unit owner who requests the assessment. If an individual applies for a risky building assessment report, they also cover the cost. If an agreement is reached with the other unit owners or with a contractor, the assessment costs can be shared, or they can be covered by the contractor. This is why your choice of contractor is so important.

For a flat-for-land construction contract to be signed, the plot must first be open to development under the zoning plan and suitable for construction. If you want a contractor to build your home, you first need to choose a contractor. Acting in haste here can lead to regret later, so thorough research is essential. It is also advisable to look into the plot's location and its potential importance in the future. The contract is drawn up either at the Land Registry Office (Tapu Dairesi) or by a notary. The area where your home is located and the number of flats are especially important. If you want to receive more flats, you should know that the split depends on the zoning conditions and the value of the area where your home stands. Although a 50%–50% split is common, in a good location the landowner's share can be 70% or more.

The advantages of urban renewal with a contractor are also significant. Urban renewal brings advantages such as the following:

A more attractive cityscape
The elimination of unlicensed construction
Increased employment
A contribution to the national economy
Modern architecture
Earthquake-safe buildings

Property owners also enjoy a number of advantages. They can obtain buildings that are safer against earthquakes, and continue their lives in a more modern, upscale setting. They can make use of extensive social amenity areas, and the value of their flat may increase by as much as 300%.

Is a Contractor Required to Provide a Guarantee?

Is a contractor required to provide a guarantee? Shelter is among the most basic human needs, which makes home ownership extremely important. In Turkey, many people want to give their existing plot to a contractor under a flat-for-land construction contract. However, there are many aspects of this process that people are not aware of. If you want to avoid regret and protect yourself from being wronged, the first thing to understand is that decisions should not be made in a hurry. Before reaching an agreement with a contractor, you must research them and make sure they are trustworthy. The Regulation Amending the Implementing Regulation of Law No. 6306 introduced important changes in this respect. Under it, contractors who want to obtain a building permit must provide a certain percentage of the approximate construction cost as a guarantee. This is one of the key points to bear in mind regarding contractor guarantees. The contractor must also obtain permission from the administration in order to make sales. Under a construction contract in exchange for land shares, a contractor who wants to sell flats to consumers while construction is under way must do so in proportion to the level of completion.

If a contractor wants to build in an area declared a risk area or on a site declared a risky building within an urban renewal zone, they must prepare the necessary documents and apply to the municipality. In risk areas, if the construction area is up to 50,000 m², the guarantee must equal 10% of the approximate construction cost. Above 50,000 m², the following rates apply:

Up to 50,000 m²: 10% of the approximate construction cost
Between 50,000 and 75,000 m²: 8%
Between 75,000 and 100,000 m²: 6%
100,000 m² and above: 4%

You can obtain detailed information by looking into the guarantee requirements for contractors before applying. The following can be provided as a guarantee:

Cash in Turkish lira,
Government domestic borrowing securities issued by the Undersecretariat of Treasury (Hazine Müsteşarlığı),
A letter of guarantee.

The guarantee is returned to the contractor once construction is completed and the occupancy permit (Yapı Kullanma İzin Belgesi) has been issued. If the construction project is not completed, or is not carried out in accordance with the technical specifications in the contract, the guarantee is transferred to the new contractor engaged to take over.

How Do You Reach an Agreement with a Contractor?

How do you reach an agreement with a contractor? Many people who want to give their plot to a contractor wonder about this. Although it may seem difficult, it is actually quite straightforward. In Turkey, many people give their existing plot to a contractor as a way of becoming homeowners. Others buy a plot and then give it to such a company in exchange for flats.

This makes it possible to become a homeowner in a shorter time. It is a very easy and practical method, especially for those who do not want to deal with the construction process themselves. The owners reach an agreement with the contractor to have a building constructed on their plot. The first thing you need to know is that the plot must be open to development under the zoning plan and suitable for construction, so you should look into this first. The contract assigns the task of construction to the contractor. Once construction is complete, the flats are distributed according to the agreement between the contractor and the landowner. This is profitable for the landowner, who contributes only the land, and a profitable investment for the contractor, who does not pay for the land. In this way, the agreement benefits both parties. A contract is signed for this purpose, and it must be drawn up before a notary. So that neither party is wronged, the obligations must be set out clearly and precisely. It is important that the contract includes provisions such as the following:

The materials to be used during construction and the common areas should be specified.
The materials to be used should be listed in detail and reviewed.
The penalties that apply in the event of a breach of contract should be specified. This protects both parties.
It should be stated whether the landowner is liable in cases such as workplace accidents, and who will pay the property tax.
The project completion date should be included.
It should be stated which party is responsible for fees and expenses.

Paying attention to these points when reaching an agreement with a contractor will help you achieve better results, which is why they are so important. The contracting company you choose to work with also matters.

How Is an Urban Renewal Loan Paid to the Contractor?

How is an urban renewal loan paid to the contractor? This is one of the questions people ask most today, as it is an important safeguard against being wronged. If you want to use this loan, your building must first be included in urban renewal. A contractor must also be chosen, and care is essential at this stage. You should then apply to one of the participating financial institutions. A maximum of 100,000 Turkish lira is provided per flat. However, if the applicant owns four, five or more flats, a maximum of 500,000 Turkish lira is provided in total. The amount therefore varies with the number of flats you own.

Although the question of how an urban renewal loan is paid to the contractor can raise concerns, there is no need to worry. The loan from the bank is transferred to the contractor's account as a blocked amount, so the full sum cannot be used at once. The contractor presents the completed work at each stage of construction and requests an inspection. The bank then obtains the necessary documents from the building inspection firm overseeing the construction and has the site inspected. The bank then transfers to the contractor the amount corresponding to the work completed up to that point. There is also no need to worry if the contractor walks away while construction is still under way, or if the owners halt the work because they are not satisfied with it.

This is because the money is held in a blocked account and is therefore protected. The building can be completed with the remaining loan, using another contractor and bank of your choice. Keep in mind that those who take out an urban renewal loan cannot receive rent assistance. If you have any questions about the payment process, you can get information from both the bank and the contracting company. In outline, the people who can benefit from this loan are as follows:

Rights holders who want to have their homes rebuilt
Owners whose homes have been identified as risky and who want to buy a different home
Tenants or holders of limited real rights who have lived in a risky building for at least one year

Interest support will be provided by the Ministry of Environment, Urbanisation and Climate Change to rights holders who take out a loan. To qualify for this support, the building must either be located in a risk area or, if it is not within a risk area, a technical report must establish that the property is a risky building. This is another point to keep in mind.

Who Decides on the Demolition of a Building?

Who decides on the demolition of a building? This is one of the questions people ask most today, because those who want to go ahead with urban renewal want to understand the process beforehand. Knowing the main steps will help you. If you think your building is risky and want it assessed, you should first apply to an authorised institution or organisation. This varies depending on where you live, and you can check using the link given above. One detail you should know is that no majority decision is needed to apply. Any one of the property owners can apply, either in person or through a legal representative.

This is one of the important details among the requirements for urban renewal. After the application, the institution prepares a report. This document is served on the owners of the units in the risky building through the relevant Land Registry Directorate. Each unit owner may then object to the risky building report within 15 days. Keep in mind that if no objection is made, the report becomes final. If an objection is received from the unit owners, a commission consisting of four academics and three officials appointed by the Ministry decides on the matter. In addition, building owners may file an action for annulment before the Administrative Court within 60 days of being notified of the outcome of their objection to the risky building report.

If the building is not demolished within this period, an additional period of not less than 30 days is granted. At the end of that period, the demolition is carried out by the Ministry of Environment, Urbanisation and Climate Change. Once this is complete, the unit owners may have a new building constructed. There are also other options that can be considered. For this, a two-thirds majority is required. Under the 2022 rules, if a demolition decision is taken, rent assistance is available for 18 months. People also ask about buildings ordered to be demolished by the municipality. The municipal executive committee (belediye encümeni) can, as a last resort, decide to demolish buildings that violate zoning rules. Such a decision must comply with the procedure set out in Zoning Law No. 3194 (3194 Sayılı İmar Kanunu).

People also want to know about the objection process in this case. If the required conditions were not met during the preparation and decision stages, an application can be made to the administration that issued the demolition decision, asking it to correct the unlawful act.

How Much State Support Is Available for Urban Renewal?

State support for urban renewal in 2022 is one of the topics people look into most. Under urban renewal, risky buildings in risk areas are demolished and rebuilt. During this process, the state provides financial support to the owners of the demolished buildings, and people often ask what this support is and how much it amounts to. Urban renewal makes problem areas of a city liveable and healthy in spatial, economic and social terms. Problems that disrupt the fabric of the city are resolved, and potential natural disaster risks are addressed. In this process, risky buildings are identified, then demolished and rebuilt. The state provides financial support to rights holders whose buildings are demolished, and to tenants. Under the 2022 state support for urban renewal, owners of buildings in implementation areas that are vacated by agreement, and owners of risky buildings outside implementation areas, may be allocated temporary housing or business premises, where possible, from the date of evacuation until their homes and workplaces are handed over, or until a date determined by the relevant authorities.

If this is not possible, a monthly rent set by the Ministry may be paid instead. This rent is updated in line with the Consumer Price Index published by the Turkish Statistical Institute (Türkiye İstatistik Kurumu, TÜİK). Up to the first five months of rent assistance can be paid in advance, taking moving costs into account. In addition, tenants or holders of limited real rights who live in the building, and those who operate a business there, may receive a one-off rent assistance payment at a rate set by the Ministry.

People also want to know how to apply for rent assistance under the 2022 state support. Within an implementation area, the application is made to the relevant institution on the basis of the decision designating the risk area or reserve area and the title deed. For risky buildings outside implementation areas, the application is made to the Provincial Directorate of Environment, Urbanisation and Climate Change on the basis of the risky building assessment report and the title deed. The limits of state support for urban renewal can change from year to year, so you should check them specifically. In renewal projects, rent assistance paid from the special account is, for requests within an implementation area, transferred to the account of the implementing administration or TOKİ for payment to those concerned, once the administration or TOKİ has found it appropriate, approved it and submitted it to the Ministry.

Who Receives Rent Assistance in Urban Renewal?

Citizens have many questions about urban renewal, and one of the most important concerns rent assistance, including who is eligible for rent assistance from the Ministry of Environment, Urbanisation and Climate Change. The state provides financial support to citizens whose homes or workplaces are demolished in an urban renewal project, and rent assistance is part of this. It is paid monthly for 18 months, and the amounts may change each year.

Rent assistance in urban renewal is given to people who vacate a risky building by agreement. Applicants for rent assistance must also meet a residence requirement, which is another point to pay attention to.

Rent assistance is provided to people who lived in the risky building, and this can be proven with documents such as utility bills. Rent assistance applications require bills from the rights holders covering the last three months before the date the risky building was vacated. A number of documents are also required to apply for rent assistance. In outline, they are as follows:

An up-to-date title deed record
Submission of the title deed to the relevant units
A photocopy of the applicant's identity card
A copy of the application petition completed by the applicant to apply for rent assistance
The report stating that the building is damaged or risky, and the demolition form

In addition, a photocopy of the account book showing that the rights holder or their proxy holds an account at Ziraat Bankası is required. Keep in mind that incomplete documents will prolong the application process, so it is advisable to complete them in advance. Rent assistance is provided to people who vacate a risky building by agreement; for the owners of buildings vacated under such an agreement, and for tenants, there is a requirement to have been resident in the building. For holders of limited real rights, rent assistance may be provided within the scope of temporary housing or business premises allocation. It is also important that the contact details and numbers on your documents are complete and correct.

One detail you should not forget is that those who take out an urban renewal loan cannot receive rent assistance. It is therefore in your interest to think this through carefully before applying.

How Much Is the Urban Renewal Loan in 2022?

Urban renewal has been studied by many people, especially in recent years. If you are researching it, once you understand what these projects involve, you also need to know about the support provided by the state. Loans are one of the options available to you.

The first thing to know is that loan amounts can vary from year to year. In 2022, the urban renewal loan for those who want to strengthen their buildings was increased from 80,000 Turkish lira to 160,000 Turkish lira.

For those who want their building to go through urban renewal, it was increased from 200,000 Turkish lira to 400,000 Turkish lira. The support available to you therefore depends on your goal. However, the figures change if you own more than one home.

In 2022, if you own more than one home, the loan limit was raised from 1 million Turkish lira to 2 million Turkish lira, an increase of 60%. You can review the figures below:

Strengthening loan: annual interest support of 400 basis points; maximum grace period on principal of 2 years; maximum term of 10 years; upper limit of 160,000.00 Turkish lira
Housing construction loan: annual interest support of 400 basis points; maximum grace period on principal of 2 years; maximum term of 10 years; upper limit of 400,000.00 Turkish lira
Housing purchase loan: annual interest support of 400 basis points; maximum grace period on principal of 1 year; maximum term of 10 years; upper limit of 400,000.00 Turkish lira
Workplace construction loan: annual interest support of 300 basis points; maximum grace period on principal of 2 years; maximum term of 7 years; upper limit of 400,000.00 Turkish lira
Workplace purchase loan: annual interest support of 300 basis points; maximum grace period on principal of 1 year; maximum term of 7 years; upper limit of 400,000.00 Turkish lira

Keep in mind, however, that these figures may increase in the future. If you want to take advantage of these opportunities, you should follow the latest updates.

Urban renewal loans are offered by various banks. Since each bank is different, reviewing them all before deciding will help you get better results. You can find the list of banks above.

If you want to benefit from the interest rate on urban renewal loans, you need to apply to a bank within one year of the evacuation decision. The drawdown period for interest-supported loans approved by the Ministry is two years from the date of the Ministry's interest support eligibility letter.

If you want to take out a loan, simply visit any of these banks. You can get detailed information there and apply if the terms suit you.

What Percentage Is the Urban Renewal Loan? What Is the Interest Rate on Urban Renewal Loans?

People who want to use a loan under urban renewal often ask what the interest rate on an urban renewal loan is. Banks apply a monthly rate of 1.29% to urban renewal construction loans over a 10-year term. Thanks to the Ministry's interest support, this rate falls to as low as 0.88% for energy-efficient homes, and to 0.96% for standard homes. For a loan of 400,000 Turkish lira, this means the monthly instalment falls from 6,571 Turkish lira to 5,410 Turkish lira, a total saving of 139,276 Turkish lira. Since interest rates may vary from bank to bank, it is advisable to review each one separately. The main steps in the lending process are as follows:

The applicant submits the loan request to the bank.
The bank evaluates the request in detail.
If the bank approves the request, it sends the approved customer's documents to the Ministry for approval of interest support.
Once the Ministry approves the interest support, the loan is disbursed.
After the loan is disbursed, the documents requested by the Ministry are submitted to it.
Once the first instalment of the loan has been paid, the interest support amount is claimed from the Ministry.

In addition to its interest rate, the urban renewal loan offers rights holders a number of other advantages. In outline, they are as follows:

Exemption from notary fees, charges and similar costs
4% annual interest support on housing loans for tenants who want to buy a home
Loans secured by a mortgage on the home to be renewed
The increase in value of the renewed home after construction
Exemption from BSMV (Banking and Insurance Transactions Tax) and KKDF (Resource Utilisation Support Fund)
Long repayment plans of up to 120 months for housing loans and up to 84 months for workplace loans
With state incentives, interest rates 4% lower per year on housing loans and 3% lower on workplace loans

Even so, keep in mind that rates can vary. The interest rate offered to customers may differ, and because campaigns vary from bank to bank, so will the advantages available to you. Rather than making a hasty decision, it is advisable to review all the banks first and choose the one that suits you best.

How Many Years Is the Grace Period on an Urban Renewal Loan?

How many years of grace period does an urban renewal loan offer? This question is frequently asked by people who want to benefit from urban renewal. The first thing to mention here is interest support. Urban renewal is carried out with state support, so there is also an interest discount at the loan stage. The rates differ for homes and workplaces, as set out above. In some cases, however, the discount rates may change.

The key factor here is energy efficiency. Looking at your Energy Performance Certificate (Enerji Kimlik Belgesi) will make it easier to see your discount rate. If your home is rated class A, the discount is 5%; for a workplace, it is 4%. If your home is rated class B, the discount is 4.5%, and 3.5% for workplaces. However, citizens should be aware that the interest support is suspended if loan payments are not made, and act accordingly. Payment plans may vary between banks, so it is advisable to discuss the urban renewal loan repayment plan with the banks individually.

Loan terms differ for homes and workplaces: up to 10 years for homes and up to 7 years for workplaces. If you would like information on the 2022 urban renewal loan figures for your calculations, you can refer to the list above. It also includes the grace period on principal, so it should answer your questions.

If you want to use an urban renewal loan, there are also some points to keep in mind. In outline, they are as follows:

If you want to strengthen your building, you can use an urban renewal loan of 80,000 Turkish lira with a 10-year term.
Regardless of the size of the flat in square metres, you can use a loan of up to 200,000 Turkish lira with a 10-year term.
If the rights holder owns more than one flat in the building, they can use a loan of up to 1,000,000 Turkish lira.
Banks may also provide additional loans beyond this.

Although financial institutions offer different interest rates and terms for urban renewal loan repayment plans, the rate is generally considered to be 50% of the standard interest rate. Terms range from 24 to 120 months. The documents required for the loan are as follows:

For rights holders who operate a business, a letter from the relevant professional chamber confirming the closure of the business, and the tax certificate showing that the business was in operation
A written undertaking confirming that the risky building has been vacated
An address-based population register extract showing the rights holders' new address, obtainable from the provincial or district Directorate of Population and Citizenship Affairs
The new title deed with construction servitude (kat irtifakı) issued after urban renewal
The building permit and title deed, if available
The construction contract signed between the contracting company and the rights holders
The risky building assessment report review form issued by the Directorate of Infrastructure and Urban Renewal (Altyapı ve Kentsel Dönüşüm Müdürlüğü) or the Provincial Directorate of Environment, Urbanisation and Climate Change

If your documents are complete, you can apply for the loan without any problems.