Rent Assistance and Interest-Subsidized Loans in Urban Transformation

Once a building is found to be risky and evacuated, right holders have to live somewhere else until construction is finished. Law No. 6306 provides two forms of support for this period: rent assistance and an interest-subsidized loan. These cannot be used at the same time; the right holder chooses one.

Rent assistance

• Who receives it: Owners, tenants and holders of limited rights in rem in the risky building; the duration and amount differ for each group.
• Duration: Paid monthly to owners for a set period (in practice, up to 18 months); tenants and holders of limited rights in rem receive a shorter or one-off payment.
• Amount: Set by the Ministry each year by province; Istanbul has its own separate rate.
• Conditions: The risky-building finding must be final, the building must be evacuated, and the applicant must have been resident at that address at the time of application.

Application

1. The risky-building report becoming final, and an evacuation record.
2. Applying to the Provincial Directorate of Environment, Urbanization and Climate Change, or through e-Devlet, with the title deed, ID, residence history and bank account details.
3. Payments are deposited monthly once approved.

Interest-subsidized loan

Instead of rent assistance, the Ministry covers part of the interest on a bank loan used to acquire or build a new home. The loan ceiling and the subsidy rate are set periodically. This option is especially relevant when owners are financing construction themselves with their own shares.

Periodic programs

The Ministry occasionally announces additional support programs; for example, a grant-and-loan transformation program for Istanbul was announced after 2023. The scope, amount and application periods of these programs vary; confirm current terms with the Provincial Directorate or the Ministry's announcements.