Rental Assistance and Other Supports Provided Under Urban Transformation

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Rental Assistance and Other Supports Provided Under Urban Transformation

 

1. Rental Assistance

Property owners of evacuated buildings are entitled to receive rental assistance for 18 months in the case of risky buildings and for 18 months in the case of buildings located within risky areas or reserve building areas. Where required by the implementation process, individuals who are not property owners but who use the relevant risky property (e.g., tenants) may also be granted rental assistance.

The procedures and principles regarding rental assistance are set out in detail in the Decision on Providing Assistance to Persons Using Buildings Within the Scope of Law No. 6306 Without Being Owners, Tenants, or Holders of Limited Real Rights. In addition, if deemed appropriate by the Presidency, rental assistance covering up to one year may be paid in advance.

2. Allocation of Residential Units or Workplaces to Tenants and Holders of Limited Real Rights

After residential units or workplaces have been allocated to property owners, any remaining units may be allocated, through a contractual arrangement, to individuals who have resided in or operated a business in the relevant buildings as tenants or holders of limited real rights for at least one year.

3. Building Assessment Loan

A building assessment loan may be provided from the Presidency's special account for the purpose of carrying out a risky building assessment. The relevant right holder must ensure that the risky building assessment is conducted within three months from the date the loan is granted. The repayment period for the loan is 24 months.

4. Demolition Loan

The Presidency may provide demolition loan support for the demolition of buildings determined to be risky. The building must be demolished within six months from the date the loan amount is transferred to the beneficiary’s account. The repayment period for this loan is 24 months.

5. Construction Loan

A construction loan may be provided through an agreement executed between the Presidency and the relevant parties for the renewal of buildings under disaster risk. Such loans are supported through interest subsidies provided by the Ministry of Environment, Urbanization and Climate Change.

6. Interest Rate Support

Under Law No. 6306, natural and legal persons whose buildings have been determined to be risky following a risky building assessment may benefit from interest rate support for loans obtained from banks. For this purpose, the Urban Transformation Presidency enters into protocols with participating banks.

The bank notifies the Presidency of the applicants it considers eligible for financing. Following an examination by the Presidency, approved applicants are reported back to the bank. To benefit from this support, an application must be submitted to the bank within one year from the date of evacuation of the property. The duration of the interest rate support is one year.