Important Modifications to Zoning, Construction Supervision, and Urban Transformation Regulations

The Law No. 7534 on Amending the Village Law and Certain Other Laws (“Amendment Law”), bringing important modifications to zoning, construction supervision, urban transformation, and environmental regulations, was enacted on 5 November 2024.

The amendments to Article 5 of the Law on Building Inspection by the Amendment Law will enter into force on 12 June 2025.

The other amendments stipulated by the Amendment Law entered into force by publication on 12 December 2024.

We present below certain key modifications introduced with the Amendment Law for your information.

1. Amendments Within the Scope of Demolition Process Redarding Unauthorized Structures

As is well known, The Law No. 775 on Slum Housing (“Slum Law”) regulated transformation activities due to unauthorized construction (“slumisation”) also falls under the scope of “urban transformation” in addition to the Law No. 6306 on the Transformation of Areas Under Disaster Risk (“Law No. 6306”), which concerns the transformation activities in areas under the risk of disaster. The Slum Law, on the other hand, regulated for the demolition of unauthorized structures (“slums”) on lands and plots owned by the Treasury, special provincial administrations, special-budgeted administrations, or those areas under State control and disposal without any proprietary or personal rights based on ownership, easement, lease, or allocation in order to prevent slum reconstruction.

» In parallel with the above applications, the provision of law stating that unauthorized structures shall be “immediately demolished by municipal and State law enforcement without need for decision-making” was previously annulled by the decision of the Constitutional Court dated 22 February 2024, and with file number 2023/191 and decision number 2024/58, on the grounds of the right of legal recourse. In this scope, the Amendment Law clarifies the demolition procedure and the authorities to resolve the demolition of unauthorized structures, providing the Housing Development Administration (tr. Toplu Konut İdaresi Başkanlığı (TOKİ)), municipalities, and special provincial administrations with such authority to decide on demolition.

» In accordance with the regulations introduced by the Amendment Law, the demolition decision will be notified to the relevant parties within seven (7) days via registered mail with acknowledgment of receipt, and if the parties could not be notified, the decision will be notified by posting the demolition decision on the related structure with a copy delivered to the local headman (tr. muhtar). The date of posting the demolition decision on the structure will be considered the date of notification. Municipalities or special provincial administrations shall carry out the decided demolition within fifteen (15) days from the date of notification.

» Amendment Law stipulates that local administrative authorities (provincial governors (tr. vali) or district governors (tr. kaymakam)) shall be responsible for ensuring security during demolition.

2. Certain Amendments to Authorisations for Planning and Implementing Zoning Applications

Certain planning and approval authorities related to zoning and construction granted to the Ministry of Environment, Urbanization, and Climate Change (“Ministry”) under the Presidential Decree No. 1 on the Organisation of Presidency have previously been annulled by the Constitutional Court’s decision dated 26 October 2023 and file number 2018/188 and decision number 2023/180, on the grounds of the principle of legality. As a result, such duties and powers of the Ministry have been regulated in the Zoning Law No. 3194 (“Zoning Law”) which covers zoning applications such as subdivision, consolidation, renunciation for road, and property type classification.

»  As the Urban Transformation Presidency has been authorized to “prepare” maps, plans, projects, land, and plot readjustments, and consolidations within the scope of application of the Law No. 6306 with the recent legal amendment, the Ministry has been authorized to “approve” these applications.

»  Additional Article 5 added to Law No. 6306 granted the Urban Transformation Presidency with authority to carry out preparatory actions related to urban transformation and development areas within the scope of Article 73 of the Municipal Law No. 5393 and renewal areas within the scope of Law No. 5366 on the Preservation by Renewal and the Use of Deteriorated Historical and Cultural Properties.

3. Method of “Transfer of Zoning Rights” for Public and Common Service Areas

Pursuant to Article 13 of the Zoning Law, lands subject to private ownership allocated for public and common service areas (e.g., schools, hospitals, municipal service areas, official institution areas) uses in the implementation zoning plan may be acquired for public use through methods such as the following:

(i)  Expropriation;

(ii)  Deduction of sufficient area (not in excess of 45% of the previous surface area of the land and plot subject to readjustment) as “development readjustment share” (tr. düzenleme ortaklık payı) in return for increase in value due to land and plot readjustments according to the zoning plan;

(iii)  Dedication of necessary areas from Treasury or publicly owned areas.

Amendment Law has introduced “transfer of zoning rights” as a framework method in the Zoning Law, in addition to special provisions in laws such as the Law No. 2863 on the Protection of Cultural and Natural Properties and the Forest Law No. 6831 or in zoning plans.

The Amendment Law provides that areas not acquired by public through the other certain methods due to reasons such as earlier readjustment development share deductions, or exceeding the readjustment development share limit may be acquired through zoning plan adjustments (“transfer of zoning rights”) without compensation.

Transfer of zoning rights aims to prevent restrictions and difficulties arising /can arise from building restrictions (regarding construction permit, occupancy permit) on parcels subject to private ownership that are entirely or partially located in public and common service areas.

The construction rights subject to the transfer of zoning rights shall be determined by the Ministry and local administrations authorised to approve zoning plans (as appropriate), provided such rights do not exceed the construction right based on the floor area ratio of the nearest neighboring parcel or block, with the possibility of an increase by a maximum of 30%. The value of the zoning rights subject to transfer shall be determined not less than the average of values determined by at least two licensed real estate valuation institutions by a valuation commission to be established by the relevant administration according to the principles specified in Expropriation Law No. 2942, and the rights corresponding to this value shall be transferred to the areas planned by a zoning plan decision.

As a result of the regulation of transfer of zoning rights as a new method, provisions of Article 18 of the Zoning Law regarding development readjustment share were adjusted to allow recourse to the transfer of zoning rights (among other methods in Article 13) in cases where the development readjustment share cannot be obtained to allocate common and public service areas.

4. VAT Exemption to Urban Transformation Presidency

With the amendment to the Value Added Tax Law No. 3065, land and plot deliveries by the Urban Transformation Presidency were exempted from value added tax (VAT).

5. Certain Important Modifications to the Law on Construction Supervision

»  Solar energy power plant (SPP) and wind energy power plant (WPP) projects have been excluded from the scope of the Law on Construction Supervision No. 4708.

»  However, with such amendment to Article 1 defining the scope of the law, these projects will so forth be supervised by architects and engineers under technical responsibility regarding their compliance with regulations, the zoning plan, construction permit and its annexed study and projects, standards, and technical specifications.

»  Modifications to the Law on Construction Supervision have also introduced tiered increases in supervision service fees based on building construction area, as well as certain specific amendments concerning supervision service agreements and the responsibilities of supervising institutions.

6. Parcel-Based Function Change and Implementation of Value Increase Share

Zoning Law restrictedzoning plan amendments that increase population, construction density, number of floors and height of buildings. Prior to Amendment Law, parcel-based function changes (transitions between functions such as commerce, tourism) were not permitted. With the Amendment Law, parcel-based function changes are so forth possible at the request of all property owners, except for conversion to residential use.

It should be reminded, the Zoning Law provision requiring the deduction of entire value difference resulting from “block-based” zoning plan (and function) changes as a value increase share was previously annulled with the Constitutional Court’s decision dated 18 May 2023 and file number 2020/42, decision number 2023/99. Accordingly, the Amendment Law has determined the value increase share as 90% for both parcel-based function amendments as well as block-based zoning plan (and function) amendments.

However, a value increase share will not be deducted for plan changes increasing the floor area ratio up to 20% in areas and buildings within the scope of the Law No. 6306.

These amendments aim to promptly correct restrictions to development rights on private property and acquire value increase shares for public benefit.

7. Exemption from Permission for National Geographic Data Responsibility Matrix

Under the Law on Amending Certain Laws Regarding Geographic Information Systems No. 7221, permission of the Ministry is required to collect, produce, and share data from the National Geographic Data Responsibility Matrix.

With the Amendment Law, legal entities authorized for licensed electricity and natural gas distribution by the Energy Market Regulatory Authority (EMRA) have been exempted from the requirement of permission for activities within their licensed scope.

8. Amendments Regarding the Turkish Environment Agency

The Turkish Environment Agency operating a national deposit management system in line with the Ministry’s environmental strategies and policies, now, may so forth subscribe into established companies, in addition to its prior authority to establish trade companies, when carrying out its activities under the zero-waste approach.

9. Conclusion

The Amendment Law aims to adopt practical applications with legal objectives, in both disaster-focused and socially oriented urban transformation activities.

Regulations enacted with a general scope, such as “transfer of zoning rights,” are expected to be clarified in accordance with the principles of legality and certainty, with an emphasis on acceleration in the field of zoning law through citizen and stakeholder cooperation.