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NewsRENTAL AND OTHER RELIEVES WITH REGARDS TO THE LAW ON TRANSFORMATION OF THE AREAS UNDER THE RISK OF CATASTROPHE AND RELATED BY-LAW

January 1, 20130

The law on Transformation of Areas under the Risk of Catastrophe Prepared by the Ministry Of Environment And Urban Planning have been published on the Official Gazette and executed on December 15, 2012.

Rental relief, temporal domicile or work place allocation, covering expenses for moving, interest relief and inducements for the owner who have been evacuated on agreement are stated in the 16th article of the By-Law. These financial supports might be provided to the ones who are resided in the relevant real-estate as renter or holding limited real rights.

In this context, in case a building is included within the area of urban transformation area (reserve area or risk area) or not included within the urban transformation area but detected as risky building, the owners of these buildings shall be provided temporary domicile or work place. In case providing temporary domicile or work place is not possible, then rental relief might bein question.. The maximum amount of rental relief is 600 TL and monthly hire rate shall be updated in accordance with Consumer Price Index determined by the Turkish Statistical Institute published every year.

Rental relief for the first five months decided to be provided by the Ministry of Environment and Urban Planning might be paid in advance. Removal expenses shall be considered during this payment.

Applications and assessments for the rental relief are regulated in the article 16/4 of the By-Law. In accordance, building owners or renters or persons hold limited real rights residing in the buildings which are demolished because they are included in reserve structure areas may apply to TOKI (stands for Mass Housing Administration) or related municipality which renders the decision. During the application the decision for determining risky area or reserve area and land registration certificate should be submitted. To provide rental relief to the said persons depends on the approval of TOKI or related municipality and assent of the Ministry of Environment and Urban Planning. In case rental relief is provided, the amount will be paid to the bank account of the TOKI or related municipality to be paid to related persons.

Although their buildings are not included in the reserve area, if a building is determined by the authorized institutions to be risky, its owners or renters or persons who are residing in by holding limited real-rights may apply for rental relief to the Infrastructure and Urban Transformation Directorate or inexistence of such directorate, to the Ministry of Environment and Urban Planning Provincial Directorate. During the application, a report in relation to detecting as risky building and land registration certificate should be submitted. To provide rental relief to the said persons depends on the approval of the Ministry of Environment and Urban Planning Provincial Directorate or and assent of the Ministry of Environment And Urban Planning. In case rental relief is provided, the amount will be paid directly to the bank account of related persons.

Interest relief in case the owners or renter or people hold limited real-rights who are residing at the buildings which are detected to be included in the reserve or risky area or risky buildings use credit from banks is set forth in the By-Law. In accordance, interest relief in the ratio determined by the Council of Ministers upon the motion of the Minister of Finance will be provided. Interest relief and rental relief may not be provided to the same person, for this reason people who are provided rental relief may not be provided interest relief. It means the same person cannot benefit from both rental and interest relief.

Said relieves may be provided to the renters and people who are residing at the building by holding limited real-rights. Limited real right holders should be residing at the said building to benefit from these relieves. Relief amounts will be determined by the Ministry of Environment And Urban Planning and relieves will be provided at once.

Financial relieves will be met from the “Special Account for Transformation Projects”.

Relieves within the context of this By-Law will take place from date of evacuation to delivery of domicile or work place or another time determined by related institution. However, duration of relief may not exceed 18 months.

Thus; on one hand while it is aimed to restoration, treatment and renovation to provide healthy and safe living spaces, in accordance with science and craft rules in the areas under catastrophe risk and areas where risky buildings are located; on the other hand it is aimed to prevent owners, limited real-right owner and even renters from suffering.

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