With the Law No. 7471 on the Amendment of the Law to the Transformation of Areas under Disaster Risk and Certain Laws and the Decree Law No. 375 (the “Law”), which was published in the Official Gazette on November 9, 2023, a number of significant amendments were made in urban transformation practices.
A. What are the Amendments Introduced by the Law?
Authorization of the Urban Transformation Presidency for Urban Transformation Practices:
With the new regulation, the authority was taken from the Ministry of Environment, Urbanization and Climate Change and the Urban Transformation Presidency (the “Presidency”) is authorized to carry out the transformation processes regarding risky buildings more effectively and coordinated. In addition, to implement the practices within the scope of the Law, it is planned to grant licenses to several institutions in the upcoming period.
Expansion of Reserve Building Areas’ Definition:
Only new settlement areas were accepted as reserve areas in the previous regulations, whereas the Law also included existing settlement areas within the scope of urban transformation within the definition of reserve areas. Before the amendment, for an area to be defined as reserve area, it had to be free of buildings and located outside the residential areas. With the new amendment, the expression "new settlement area" in the definition of reserve building area is removed from the Law and the requirement of residential area is removed. Thus, all areas deemed necessary can be declared as reserve construction areas, and the areas declared as reserve construction areas can be evacuated for urban transformation and new buildings can be built in their place.
Modification in the Authority to Announce Zoning and Subdivision Plans:
Provincial Directorates of Environment, Urbanization and Climate Change are authorized for the announcement and objection processes of zoning and subdivision plans in reserve building areas. Approved zoning and subdivision plans will be announced by the relevant Principality within 15 (fifteen) days. The evaluation period for objections is set as 5 (five) days. In the event of the objections are rejected, the rejection decision will be finalized as of the date of its issuance without the requirement for any further action.
Reduction of the Quorum Required for Decisions to be Taken by the Owners Regarding the Transformation Process:
While a two-thirds (2/3) majority was required for the decisions to be taken by the owners regarding the transformation of buildings under risk, the quorum has been reduced to the affirmative vote of the absolute majority of the owners in proportion to the shares of the property. With the amendment, the requirement of notification of the relevant decision to all owners through a notary public has been abolished, and notification can be made to the owners within 15 (fifteen) days through an announcement in the mukhtar's office.
Aids and Supports:
In the previous practice, temporary housing or workplace allocation or rental assistance was provided to the owners of the evicted buildings, tenants and in-rem right holders. With the new regulation, in addition to rental aid, the option of "support for construction" has been introduced, and the procedures and principles of such assistance will be determined by the President
Period Determined for Demolition of Risky Buildings:
While the owners were given a period of not less than 60 (sixty) days for the demolition of risky buildings, with the new amendment, the owners are given a maximum of 90 (ninety) days. If the evacuation and demolition procedures are prevented within this period, the building will be demolished with the intervention of administrative authorities. In addition, the costs related to the demolition of the building will be borne jointly by the owners in proportion to their shares as in the previous practice.
Entitlement and Debiting in the New Building:
A difference may occur between the value of the right holder's existing immovable property and the value of the new building, and the right holder may incur debt for this reason. According to the former regulation, when the right holder incurs debt, a mortgage was placed on the independent unit in proportion to the amount of the debt, whereas in the new regulation, an agreement will be concluded with the right holder and the title deed of the new building will not be transferred to the right holder unless the debt is paid within the scope of this agreement.
Pre-emption Right of the Presidency and Its Utilization:
The Ministry of Environment, Urbanization and Climate Change had the right of pre-emption on immovables located in risky areas in the previous regulations. According to the Law, the right of pre-emption will be exercised in the event of the sale of all or part of the immovable to third parties other than the owners, whether or not there is shared ownership. The procedures and principles regarding the exercise of the pre-emption right will be determined by the Presidency.
B. Conclusion
With the amendments made to the Law, the powers of the administration regarding the identification, evacuation and demolition of earthquake-risk buildings have been expanded, and the regulations regarding the immovable properties to be demolished and demolished have been detailed. These amendments are considered as an important step to mitigate the effects of the earthquake and accelerate the renewal of risky buildings.
Moreover, the Law introduces detailed regulations on immovable properties that turn into vacant land after demolition. In this context, while the amendment is of vital importance in terms of encouraging the renovation of risky buildings, it is even more important to ensure fairness in implementation.
The amendments entered into force on November 9, 2023, and only the regulation regarding the licensing of certain entities will enter into force on November 9, 2024, one year after the date of publication.
The Turkish version of the full text of the Law is available
here.
Cerensu Çetin Yenigün, Senior Associate