Details of IMM's urban transformation mobilization revealed: Who will receive financial support and at what rate?

The details of the urban transformation efforts in Istanbul by the Istanbul Metropolitan Municipality (IMM) Department of Earthquake Risk Management and Urban Improvement have been revealed.

The IMM will provide support to property owners who wish to renew their risky structures through KİPTAŞ, ranging from 40 percent to 65 percent of the total cost, depending on their income status.

Property owners in these buildings will be included in the IMM's reconstruction cost support program through a preliminary contract they will sign with the IMM subsidiary KİPTAŞ. Low-income individuals will benefit from the support at a higher rate. In addition, with another proposal to be submitted to the IMM Assembly, urgent action will be taken for approximately 6,920 structures that have applied for the IMM's rapid screening test and are classified as Class E, meaning they are in the very high-risk building group, and additional rental assistance will be provided to citizens.

IMM Deputy Secretary General Gürkan Akgün shared the details of the proposal prepared by the IMM Department of Earthquake Risk Management and Urban Improvement. Akgün stated, "With the implementation of the proposal we have submitted to the IMM Assembly, we will be launching a major campaign aimed at those truly in need for the first time. In these economic crisis conditions, where construction costs have risen significantly, we, as the IMM, will stand by our citizens and accelerate urban transformation processes." he said.

Reminding that ensuring the transformation of structures identified as risky as soon as possible is vitally important for Istanbul, Akgün added; "The project proposal also includes the signing of a protocol between the 39 district municipalities and the IMM to expand the rapid screening test." he said.

With the project to be implemented by the IMM through its subsidiary KİPTAŞ, plans include providing support for reconstruction costs, offering rental assistance for structures identified as Class E—meaning high risk—establishing a temporary rental housing zone in Bayrampaşa, and signing joint service protocols with district municipalities for building inspections via rapid screening.

SUPPORT WILL BE PROVIDED FOR RECONSTRUCTION COSTS

The IMM will provide support for the reconstruction costs to be paid by the property owners.

For structures to benefit from financial support, they must be identified as risky structures under Law No. 6306, an agreement must have been reached within the scope of 'Istanbul is Renewing' (İstanbul Yenileniyor), and the property owners, their spouses, and their dependents must not own any other real estate. Those who own a share in an independent unit outside the borders of Istanbul province must hold 50 percent or less of the share. Properties with agricultural status will not be counted as real estate ownership.

UPPER LIMIT AND CONDITIONS OF FINANCIAL SUPPORT

Financial support will be provided for the portion of the total debt amount calculated for the determined gross floor area of the apartment, up to 80 square meters, in the feasibility study prepared by the 'Istanbul is Renewing' Platform. Each property owner may benefit from the financial support only once for a single residential independent unit. The share of the property owner who benefits from the financial support will remain under the custody of KİPTAŞ for a period of 5 years.

WHO WILL RECEIVE FINANCIAL SUPPORT AND AT WHAT RATE?

Financial support rates will be determined based on the income status of the property owners. Low-income individuals and retirees will benefit from the highest support rates. A 60% support rate will be provided to those with a total household income below 2 minimum wages, and 65% if these individuals are retirees. A 40% support rate will be provided to those with a total household income below 3 minimum wages, and 45% for retirees in the same situation. In the first phase, approximately 5 billion TL in support will be provided for a total of 25,000 households that have applied to 'Istanbul is Renewing' and reached an agreement.

HOW WILL THE SUPPORT PROCESS FOR RECONSTRUCTION COSTS WORK?

The financial support process will take place in 7 stages:

1- Kiptaş signing a preliminary contract 

2- Submission of applications to the Urban Transformation Directorate 

3- Household income assessment by the Department of Social Services

4- Property assessments by the Urban Transformation Directorate

5- Notification of property owners who will benefit from financial support

6- Kiptaş reporting construction progress levels to the Istanbul Urban Planning Workshop Branch Directorate (İŞAT) and the Urban

Transformation Directorate 

7- Issuance of payment orders by the Urban Transformation Directorate following approval from İŞAT

9,000 TL FOR RETIREES

In order to accelerate the evacuation, demolition, and renewal processes of Class E buildings identified as being in the high-risk group, in accordance with Law No. 6306 and its associated implementation regulations, a rental subsidy of 9,000 TL will be provided to retirees living in these buildings, and 7,000 TL to other eligible property owners. This support will be provided for approximately 80,000 tenants in 6,920 buildings that require urgent transformation, comprising a total of 62,000 independent units.