Low-interest loan support for urban transformation is coming

The Ministries of Finance and Finance and Environment, Urban Planning and Climate Change are implementing the “Urban Transformation Financing Model” to rapidly achieve urban transformation in many provinces, especially Istanbul.

Treasury and Finance Minister Nureddin Nebati made a statement with Murat Kurum, Şanlıurfa Minister of Environment, Urbanization and Climate Change, on the new financing models that will be provided to support urban transformation.

According to the compilation made by the AA correspondent, 3 different approaches have been developed for residences in need of urgent conversion with the Urban Transformation Financing Model.

3 MODELS DEVELOPED

In the first model, the owners of independent sections that have agreed with the home manufacturer will receive loans at advantageous market conditions. With this model, the urban transformation will be carried out without loss of rights of the owners and preserving the precedents.

Within the scope of the second model, housing producers will be encouraged for island-based urban transformation. The supply of earthquake-resistant housing will be increased by providing low-cost financial support to housing manufacturers.

In both cases, support from the Credit Guarantee Fund (KGF) will be activated, facilitating access to credit for both home producers and owners of independent tranches.

‘MANUFACTURER OF HOUSES FOR RENT’ ARRIVES

With the third model, whose works began before February 6, and which has different examples around the world, the supply of rental housing will increase, thus avoiding speculation and rising rental prices.

With this model, the concept of “rental housing manufacturer” will be introduced in Turkey, and the houses produced will mainly serve the owners and tenants of risky buildings in urban transformation. The public authority will determine the rent amounts and rent increases and a maximum rent limit will apply.

Thus, rent inflation, which has risen far beyond reasonable levels, especially since the Covid-19 outbreak, will be controlled and the fight against inflation will be carried out more effectively.

In addition, the current KGF package will be revised to make it easier for contractors involved in TOKİ projects post-earthquake to access the financing they need to close their contracts in the first place.

2-YEAR NON-REFUNDABLE LOAN 0.69 INTEREST

Istanbul Metropolitan Municipal Council AKP Group Vice President and Mayor of Esenler Tevfik Göksu stated that he is preparing a new financing model for urban transformation and stated that every Istanbuli who wants to transform his house can use a loan of at least 1 million TL, with a non-refundable fee of 0.69 for 2 years. (AA)