Published in the Official Gazette: Grant and construction loan support for earthquake victims

According to the decision taken in accordance with the sixth paragraph of the additional Article 1 of Law No. 7452, which was published in the Official Gazette and signed by AKP Chairman and President Recep Tayyip Erdoğan, regarding the procedures and principles for providing grants and construction loans to natural or legal persons who own parcels where new structures will be built under the scope of the additional Article 1 of the "Law on the Acceptance of the Presidential Decree on Settlement and Construction within the Scope of the State of Emergency, numbered 7452", the procedures and principles regarding the cash or in-kind grants and construction loans to be provided to eligible beneficiaries for use in works and transactions aimed at the on-site reconstruction of structures identified as having moderate or higher damage under the "Law No. 7269 on Measures to be Taken and Assistance to be Provided Due to Disasters Affecting Public Life" in areas affected by the February 6 earthquakes have been determined.

Accordingly, under the decision to be executed by the Minister of Environment, Urbanization and Climate Change, it was noted that grants and loans will not be provided to those who are eligible under Law No. 7269 and have already benefited from loan and housing assistance; that loans will be provided for a maximum of 3 independent units, consisting of one residence and one workplace, for owners; that both a grant and a loan can be obtained for the same independent unit; that in addition to the grant provided for construction, grants will also be provided to eligible beneficiaries for building inspection, geological survey reports, and/or map preparation and similar works related to construction; that grants and construction loans will also be provided to owners of structures that are under construction and identified as having moderate or higher damage; that if there is joint or shared ownership of the damaged property, grants will be provided for only one residence/workplace and loans for a maximum of 3 independent units, again in proportion to their shares; that the rights of a deceased person regarding eligibility will pass to their heirs, and if there is more than one heir, they will be considered joint eligible beneficiaries; that all works and transactions will be carried out in the name of the last owner registered in the land registry; and that third parties who acquired the damaged property after the disaster through sale or other means will also be accepted as eligible beneficiaries.

CONSTRUCTION NOT COMPLIANT WITH ZONING LEGISLATION WILL BE HALTED FOR 30 DAYS

The decision points out that those who do not carry out their construction in accordance with the plan and project, technical and artistic rules, and zoning legislation will be given a 30-day period to correct their halted construction, along with their grants and loans. It was stated that if the construction is not corrected at the end of the given period, payments will be cut off, the grant and loan amounts used will be collected along with interest, the current value of the construction materials used will be collected, and proceedings will be carried out according to zoning legislation.

The decision, which indicates that the income and credit score status of eligible beneficiaries will not be checked when granting loans, states that eligible beneficiaries who wish to receive a grant or loan must apply to the Provincial Directorates of Environment, Urbanization and Climate Change, or via e-Devlet, with the information and documents to be determined by the Ministry, within 1 year at the latest from the date the construction permit is obtained.

PRINCIPLES REGARDING THE PROVISION OF LOANS AND GRANTS

The decision, which states that a loan agreement and payment plan will be signed with eligible beneficiaries whose applications are deemed appropriate, emphasizes that 10 percent of the loan will be paid in advance, and the remainder will be paid in 3 equal installments by the Ministry—at the foundation level, at the completion of the load-bearing system, and at the completion of construction—based on the construction progress level in the building inspection system for structures subject to the Law on Building Inspection No. 4708 dated June 29, 2001, and based on on-site inspections by relevant authorities for other structures. These payments will be sent to the non-interest-bearing bank account opened by the contractor with whom the eligible beneficiaries have agreed, in the name of the eligible beneficiaries in the building. The Provincial Directorates of Environment, Urbanization and Climate Change will establish a mortgage on the property in favor of the Treasury for twice the loan amount, including first-degree and first-rank or free-rank usufruct rights and other ranks.

According to the decision, which includes information that loan repayments by eligible beneficiaries will be monitored by the Ministry, it was stated that loans will be provided for a maximum of three independent units, with a total maturity of up to 10 years, interest-free, with a 2-year grace period, in the amount of 750 thousand lira for a residence, 1 million lira for a residence with a barn, and 400 thousand lira for a workplace.