Urban Regeneration Challenge Pack

Hülya K. ORUÇOĞLU

Within the framework of the Financing Package for Urban Transformation prepared by the Ministry of Finance and the Ministry of Environment, Urbanization and Climate Change, details of government-backed loans for owners, contractors and producers were released of housing. The experts stressed that even market conditions have changed during the urban transformation process, which can drag on due to bureaucratic obstacles. It was pointed out that this situation could bring new grievances. Lawyer Çiğdem Kezer, who has studies on the subject, said that the urban transformation financing package is a long-awaited positive step.

OBSTACLES MUST BE REMOVED

Emphasizing that banks should also inform citizens about urban transformation loans, Kezer said, “The credit limit on urban transformation has been increased up to TL 1,250,000. We were able to obtain information from only two banks regarding the credit. Other banks have also proposed many conditions for the loan. They even said that in a 44-story project, all the floors must be purchased, and that this loan cannot be given individually. A building permit is required to obtain the loan. The licensing process can take up to 6 months. Even the market conditions are changing in the loss of time”. Stating that hurdles in the urban transformation loan application process must be removed, attorney Kezer requested that building permits not be required in applications and that a guarantor condition not be placed on owners of apartments larger than 65 years for the loan. Kezer also stated that rental support is also used in the remodeling process for homes that are determined to be risky.
stressed the need for

Cygdem Kezer

No rental assistance for the borrower

Lawyer Çiğdem Kezer also mentioned the rental aid provided by the state during the urban transformation process: “The rental aid for Istanbul has been increased to 3,500 TL. It is also clear where the rents come from. This support is already low. Additionally, the state does not provide rental assistance to those who receive urban transformation loans. Citizens are forced to choose one or the other. We have previously informed the Ministry of the Environment, Urbanization and Climate Change that this is not true. This practice must be changed,” he said.