Due to increasing construction costs and incoming demands, arrangements were made in urban transformation loans. The upper limit and interest support for loans to be given to citizens whose houses will be transformed has increased for the second time this year. The retrofit loan increased from 160 thousand lira to 240 thousand lira, and the conversion loan increased from 400 thousand lira to 600 thousand lira. Interest support was also increased from 400 basis points to 600 basis points.
An important regulation came into effect to accelerate the urban transformation mobilization throughout the country. Limit and interest support has increased in conversion loans used by citizens who will renovate their risky home or workplace. The Ministry of Environment, Urbanization and Climate Change, which increased its support in February this year, took the second step, taking into account the increasing construction costs and demands from the citizens. According to the regulation published in the Official Gazette the previous day, the supports to be given in the new period are as follows:
HERE IS THE NEW PERIOD
Housing construction and acquisition loans and workplace construction loans were increased from 400 thousand liras to 600 thousand liras. The business acquisition loan was 250 thousand liras.
For those who want to strengthen their house instead of demolishing it, the retrofit loan has increased from 160 thousand liras to 240 thousand liras.
In addition to the credit limits, the interest support provided by the government has also increased. The interest rate (annual) for reinforcement and housing construction and acquisition loans was increased from 400 basis points to 600 basis points, and for workplace construction and acquisition loans from 300 basis points to 450 basis points. Thus, the interest support rate of the Ministry increased to 0.50 points per month for reinforcement and housing loans, and 0.38 points per month for workplace loans. In other words, when a 1.5 percent monthly conversion loan is used by the citizen, 0.50 percent of it will be covered by the ministry.
The maximum maturity for interest-supported housing loans is 10 years, and 7 years for business loans. Loan borrowers can pay their payments in equal installments, as well as a grace period of up to 2 years.
In the past, the total loan amount to be provided with interest support on behalf of a beneficiary was 2 million TL, and it was increased to 3 million TL with the regulation.
HOW TO GET A CONVERSION CREDIT?
1- First, a risk assessment should be made for the residence or workplace. You should learn the status of your building by applying to the inspection institutions authorized by the Ministry of Environment, Urbanization and Climate Change.
2- If the building is risky after detection, the transformation process begins. The owners are given 60 days to demolish the buildings. During this period, it will be checked whether the risky buildings are demolished or not, and if they are not demolished, an additional period of less than 30 days is given. After that, electricity, water, natural gas are cut off and destruction takes place.
3- In order to benefit from the loan support, the building must be evacuated by agreement.
4- The beneficiary citizens are required to sign a construction contract or a construction contract in return for a flat with a contractor company for conversion.
5- Citizens who have entered the new construction process can apply to banks that have signed a protocol with the ministry and have the opportunity to get a loan. However, interest support payments are stopped for loans that are not repaid by the beneficiaries.
Rights holders who want to rebuild their houses, tenants or limited real rights holders who have lived in risky buildings for at least 1 year, and owners whose house is determined to be a risky building and who want to buy a different house can benefit from the loan.
WHAT SUPPORT IS GIVEN?
Other supports other than loans and interest are as follows;
RENTAL: There has been an increase in urban transformation rent aids in the past days. In a risky structure, monthly rental assistance is provided to the owners and to the tenants at once. Although it varies according to the provinces, rental assistance varies between 1,000 lira and 1,500 lira. The aid lasts for 18 months in the risky structure and up to 48 months in the risky area. Tenants, on the other hand, can receive support between 2 thousand liras and 3 thousand liras at once.
FEES: When renovating risky buildings, exemptions are provided from duties such as title deed, notary public and stamp tax.
VAT: If the citizen transforms his house without making an agreement with the contractor, he pays 1 percent VAT instead of 18 percent.
Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.
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