The Ministries of Treasury and Finance, as well as the Ministries of Environment, Urbanization and Climate Change, are implementing the "Urban Transformation Financing Model" in order to realize urban conversion quickly in many provinces, especially in Istanbul.
Finance Minister Nureddin Nebati made statements in Şanlıurfa at the weekend with Environment, Urbanization and Climate Change Minister Murat Kurum about new financing models to be provided to support urban transformation.
With the Urban Transformation Financing Model, 3 different approaches were developed for the houses that need to be converted urgently.
In the first model, independent department owners who agree with the housing manufacturer will be provided with loans on favorable terms according to the market. With this model, urban conversion will be carried out without losing off the rights of housing owners and precedents will be preserved.
Under the second model, housing producers will be encouraged for island-based urban conversion. Low-cost financing support will be provided to housing producers and the supply of earthquake-resistant housing will be increased.
In both of these cases, Credit Guarantee Fund (CGF) supports will be put into effect and access to credit will be facilitated for both the housing manufacturer and the independent department owners.
Turkey will meet the concept of "rental housing producer"
With the third model, the works of which started before February 6 and has different examples in the world, especially the supply of rental housing will be increased and speculations and price increases in rent will be prevented.
With this model, the concept of "rental housing producer" has been introduced to Turkey and the houses produced will primarily provide services to risky building owners and tenants in urban transformation. Rental amounts and rent increases will be determined by the public authority and rent ceiling will be applied.
Thus, rent inflation, which has increased far beyond reasonable levels especially since the Covid-19 outbreak, will be reined in and the fight against inflation will be carried out more effectively.
In addition, the KGF package in force will be revised in order to facilitate the access of contractors involved in TOKİ projects after the earthquake to the financing they need to bind their contracts in the first place.
2 years non-repayment loan with 0.69 interest
Istanbul Metropolitan Municipality Council AK Party Group Deputy Chairman and Esenler Mayor Tevfik Göksu stated that very important lessons will be learned from the earthquakes at the March meeting of the city council and that those who have said 'no' to urban transformation so far will apologize to the nation.
Stating that the ministries are preparing a new financing model for urban transformation as good news for Istanbulites, Göksu said that every Istanbulite who wants to convert his / her housing can use a loan of at least 1 million liras for 2 years with 0.69 interest without repayment.