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Urban Transformation Process

HALF IS ON US CAMPAIGN / PROCESS MANAGEMENT

1) CONTRACTOR / CITIZEN Signing the Contract with the Contractor: All right holders reach an agreement and sign a construction contract with a contractor of their own choosing.

2) CONTRACTOR / CITIZEN Risky Structure Identification and Evacuation-Demolition: Identification of the building to be transformed as a "risky structure" within the scope of the law. Completion of the evacuation and subsequent demolition of the building.

3) DISTRICT MUNICIPALITY - CONTRACTOR / CITIZEN Building Permit and Condominium Servitude Process: Preparation of the architectural project for construction by the contractor and the establishment of condominium servitude (kat irtifakı).

4) DISTRICT MUNICIPALITY - CITIZEN Grant and Loan Application: Applying to the District Municipality after the project phase is completed.

5) DISTRICT MUNICIPALITY Independent Unit and Right Ownership Determination: Preparation and approval of the building identification and progress payment reports by the district municipalities.

6) PRESIDENCY - CITIZEN Signing of Grant Commitment and Loan Agreement: Signing of the commitments and contracts for the grant and loan applications approved by the relevant administration.

7) CONTRACTOR - PRESIDENCY - MUNICIPALITY Transfer of Grant and Loan Payments: Providing 875,000 TL grant and 875,000 TL loan for one independent residential unit; 437,500 TL grant and 437,500 TL loan for one independent commercial unit; and 125,000 TL evacuation support for residents (including tenants).

8) CONTRACTOR - PRESIDENCY - MUNICIPALITY Commencement of the Construction Process: Entry of the construction progress levels from the Building Inspection System into the A.R.A.A.D. net system by the district municipalities.

9) RELEVANT ADMINISTRATION - CONTRACTOR Completion of the Structure: Completion of construction activities and obtaining the Building Occupancy Permit (Iskan).

10) PRESIDENCY - CITIZEN Repayment of Loan Applications: Loan repayments will start 2 years after the building permit is obtained. The maximum term is 10 years. In the first year of repayment, no interest is applied; in subsequent years, interest equal to half of the Consumer Price Index (CPI) rate will be applied.

APPROVALS AND DECISIONS TAKEN WITHIN THE SCOPE OF THE CAMPAIGN

  1. The purpose of this Decision is to determine the procedures and principles for providing construction assistance, including grants, loans, and evacuation support, for urban transformation applications to be carried out in the province of Istanbul, pursuant to the first and second paragraphs of Article 5 of Law No. 6306.
  2. Following the issuance of a permit and the establishment of condominium servitude on the parcel where the risky structure is located under Law No. 6306, construction aid may be provided to real or legal persons upon request for new structures to be built, based on the residence and commercial units they owned in the existing structure as determined by the Administration.
  3. If the number of independent units or the construction area in the project to be produced (excluding parking and shelter areas) exceeds 1.5 times the existing number of independent units or construction area, grant and loan support cannot be utilized.
  4. If a building permit for the new structure was issued before April 1, 2023, on the parcels where the risky structure is located, construction assistance cannot be utilized.
  5. If the building benefiting from construction assistance is an un-individualized cooperative, the cooperative member list and the existing number of independent units in the risky structure shall be taken as the basis.
  6. A right holder may be granted up to 875,000 TL grant and 875,000 TL loan for one residence; 437,500 TL grant and 437,500 TL loan for one commercial unit; and up to 1,750,000 TL loan for each additional residence and 875,000 TL loan for each additional commercial unit. Additionally, the right holder may use the grant and loan of a right holder whose share is sold through a sale or share sale transaction within the scope of Law No. 6306.
  7. Apart from the construction grant, a one-time, non-refundable evacuation support of 125,000 TL per independent unit may be provided to owners, tenants, and limited real right holders, provided they reside in/use the unit. However, according to the Ministry's Approval dated July 24, 2024, and numbered 82551, evacuation support can only be utilized if the property owners participate in the "Half is on Us" Campaign and have started receiving payments.
  8. For structures subject to Law No. 4708, grant and loan support are paid by the Presidency in three equal installments—at the sub-basement level, upon completion of the carrier system, and upon completion of construction—into the demand deposit account opened at the Bank in the name of the contractor agreed upon by the right holders. For other structures, the progress levels determined by the relevant administration through on-site inspection shall be the basis.
  9. Loan repayments start from the first month following the grace period (2 years from the building permit date) and are completed in a maximum of 120 months, with the first 12 installments being interest-free. An initial update is made before the first installment payment at the end of the grace and interest-free period.
  10. While determining the updated loan debt, repayments made from the loan debt are deducted; the remaining loan debt is increased by applying the update rate to find the new debt amount. The updated debt is divided by the remaining number of installments to determine the monthly installment amounts. This process continues until the loan debt is cleared.
  11. Income and credit scores of the right holders are not checked when granting loans.
  12. The Presidency shall establish a first-degree and first-rank mortgage (or utilizing free degrees and other ranks) in favor of the Presidency on the immovable property for an amount equal to twice the loan amount.
  13. If the ground and planning status of the parcel where the risky structure is located is not suitable for reconstruction, construction assistance may be used on another parcel within or outside the provincial borders belonging to the right holders, provided all independent unit right holders give their consent.
  14. Within the scope of this Decision, grant commitments and loan agreements for construction assistance can be made until December 31, 2026, within the budget possibilities of the "Istanbul Transformation Campaign Finance" allocated to the Presidency.
  15. Loan repayments are tracked by the Presidency. If the loan debt is not paid on time, the Presidency shall issue a warning and grant a period to the debtor. If the debt is not paid within the given period, or if the loan is suspended or canceled, the unpaid portions of the utilized loans shall be followed up and collected according to general provisions.

HOW TO BENEFIT FROM THE EVACUATION SUPPORT PROCESS?

There is a 1-year application period following the demolition to benefit from evacuation support.

FOR RESIDENT OWNERS/TENANTS;

  1. If rent assistance was received under Law No. 6306 before February 22, 2024, grants/loans can be obtained, but an evacuation support application cannot be made.
  2. If rent assistance was received under Law No. 6306 after February 22, 2024, rent assistance may continue to be received if a grant commitment and/or loan agreement is signed within the scope of construction assistance, or the received rent assistance can be topped up to the 125,000 TL evacuation support.

FOR NON-RESIDENT OWNERS;

  1. If rent assistance was received under Law No. 6306 before February 22, 2024, grants/loans can be obtained, but an evacuation support application cannot be made.
  2. If rent assistance was received under Law No. 6306 after February 22, 2024, a grant commitment and/or loan agreement can be signed provided that the received rent assistance is returned along with its daily interest.
  3. A tenant may apply for evacuation support if the property owner receives grant and/or loan support for the independent unit.

HOW MUCH IS THE RENT ASSISTANCE?

Rent assistance is provided twice to each property owner: for 1 residence and 1 commercial unit. if rent assistance has been received for any residence or commercial unit, it cannot be received for a second one. The application period for rent assistance is 1 year from the moment the demolition date is entered into the system. Applications not made within this period cannot be claimed retroactively.

  1. Property owners can receive a total of 144,000 TL in rent assistance by receiving 8,000 TL per month for 18 months. This amount cannot be taken as a lump sum.
  2. Tenants can receive a one-time lump sum of 16,000 TL (equal to 2 months of rent assistance). If the property owners benefit from the "Half is on Us" Campaign, tenants can top up this amount by an additional 109,000 TL to reach the 125,000 TL relocation fee within the 1-year application period following the building's demolition.