The Ministry's Powers in Urban Transformation

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What is the Ministry's Authority in Urban Transformation?

In urban transformation, the Ministry's powers refer to the planning, implementation, supervision, coordination, and intervention authorities granted to the administration for the purpose of creating healthy, safe, and legally compliant living environments in areas at risk of disaster and in properties containing risky structures. When "Ministry" is mentioned here, it is generally understood to mean the Ministry of Environment, Urbanization, and Climate Change . However, in the current system, the Urban Transformation Presidency, established in 2023, is also a separate administrative entity with its own budget and public legal personality, affiliated with the Ministry, and plays a central role in urban transformation applications.

The primary purpose of Law No. 6306 is to determine the procedures for improvement, demolition, and renewal in areas at risk of disaster and on plots and lands containing risky structures, in order to create healthy and safe living environments in accordance with engineering and architectural standards. This purpose constitutes the legal justification for granting very broad powers to the Ministry and the Urban Transformation Presidency. However, these powers are not unlimited; they are limited by the principles of public interest, property rights, proportionality, legal certainty, procedural safeguards, and judicial review.

The Ministry's powers in urban transformation extend over a very wide range of areas, from determining risky areas and reserve building areas to identifying risky buildings, from zoning plans and urban design projects to evacuation and demolition procedures, from purchase and expropriation to agreements with property owners, from rental assistance and interest subsidies to share sales and title deed transactions.

The Distinction Between the Ministry and the Urban Transformation Directorate

One of the most frequently misunderstood issues in urban transformation projects is the distinction between the responsibilities of the Ministry and the Urban Transformation Presidency. With the regulation dated October 16, 2023, the Urban Transformation Presidency was established; it was defined as a public legal entity with a special budget, affiliated with the Ministry, and headquartered in Ankara. The Presidency consists of a central and regional organization; the regional organization comprises the urban transformation directorates established in each province.

The duties and powers of the Presidency include carrying out the tasks and exercising the powers granted by Law No. 6306, preparing legislation regarding the transformation of structures and areas at risk of disaster, conducting preparatory procedures for the declaration of urban transformation and development areas within the scope of Article 73 of the Municipalities Law No. 5393, and performing other duties assigned by the Minister. Therefore, in current practice, many processes are carried out directly by the Urban Transformation Presidency and provincial urban transformation directorates rather than the Ministry's central organization.

This distinction is crucial in practice. When a property owner, contractor, or municipality encounters a transaction, they must first determine whether it was initiated by the Ministry, the Urban Transformation Presidency, the provincial urban transformation directorate, or the municipality. The statute of limitations, the competent court, the administrative appeals authority, and the strategy for suspending execution are all shaped by this determination.

The Ministry's Authority in the Risk Area Determination Process

A risky area refers to an area that poses a risk of loss of life and property due to its soil structure or the buildings on it. Declaring an area at risk can affect a wider region, neighborhood, building block, or a complex area rather than just a single building. This decision directly impacts property rights, zoning plans, parceling procedures, eviction and demolition processes, determination of ownership rights, and project financing.

In the process of identifying risky areas, the Ministry and the Presidency can prepare technical reports based on criteria such as area boundaries, building status, disaster risk, infrastructure deficiencies, violations of zoning regulations, and implementation integrity. The final decision on risky areas is made by Presidential decree under the Law No. 6306. However, the preparation process, technical file, proposal, and implementation phases of the decision are carried out under the coordination of the Ministry/Presidency.

Since designating an area as a high-risk zone has serious consequences, the Ministry must exercise this authority based on public interest and technical grounds. Declaring an area a high-risk zone solely for economic gain or project development may lead to claims of illegality. When filing a lawsuit against a high-risk zone designation, the technical basis of the decision, the proportionality of the zone boundaries, the public interest, its impact on property rights, and urban planning principles should all be examined together.

Authority to Designate Reserve Development Areas

Reserve building areas are designated areas for use in applications to be carried out in accordance with Law No. 6306. These areas may be determined by the Ministry, either upon the request of TOKİ (Housing Development Administration of Turkey) or the relevant administration, or on its own initiative. In the current regulation text, the definition of a reserve building area refers to areas designated for use in applications within the scope of the Law.

The Ministry's authority to designate reserve building areas is one of the most strategic powers in urban transformation law. This is because declaring an area a reserve building area can affect the zoning regime of an existing property, its project use, ownership structure, zoning plan changes, the possibility of purchase or expropriation, and new settlement/alternative housing policies.

The designation of a reserve development area does not automatically transfer the title deed to the administration. However, the property may now become subject to applications under Law No. 6306. Therefore, the basis, boundaries, purpose, status of existing owners, and impact on property rights through the planned projects and designs of the reserve development area decision must be carefully examined.

Authorities in the Risky Building Identification Process

Identifying risky buildings is one of the most common starting points for urban transformation. A risky building is one that has reached the end of its economic lifespan or is determined, based on scientific and technical data, to be at risk of collapse or severe damage. Risky building assessments do not have to be carried out directly by Ministry personnel; institutions and organizations licensed by the Ministry/Presidency can prepare risky building assessment reports.

The Ministry and the Urban Transformation Presidency have the authority to manage licensing, inspection, report review, appeal processes, correction of erroneous reports, and overall coordination of the risky building process in this area. The official website of the Urban Transformation Presidency also provides information and lists of institutions and organizations authorized to identify risky buildings.

Once a building is definitively identified as risky, the evacuation and demolition process begins. This point creates significant legal consequences for owners, tenants, holders of limited real rights, contractors, and the municipality. The Ministry and the Presidency coordinate the process to ensure its proper execution, the removal of the risky building for public safety, and the continuation of post-demolition procedures on the plot in accordance with Law No. 6306.

Powers in the Evacuation and Demolition Process

Once a building is definitively identified as risky, it must be evacuated and demolished. At this stage, the Ministry/Presidency, urban transformation directorates, and the relevant municipality can play a joint role. Building owners are given a deadline for demolition. If the owners fail to demolish the building within the given time, the administration can initiate the demolition process, and the demolition costs can be collected from the owners in proportion to their shares.

With the regulatory changes made in 2026, the removal of the "risky building" annotation from the land registry after the demolition of a risky building and the inclusion of a statement in the property's declarations section indicating that it falls under the scope of Law No. 6306 have been more clearly regulated. This regulation is important because it ensures that the works and transactions to be carried out on the parcel that becomes a vacant lot after demolition are also conducted within the scope of the Law.

The Ministry and the Presidency ensure not only that the demolition takes place but also that the legal status after the demolition is correctly maintained. Therefore, the interpretation that "the risky building has been removed, the Law no longer applies" is not always accurate. Even if the risky building designation is removed, stating that the parcel falls under the scope of Law No. 6306 is important for subsequent owner decisions, share sales, building permits, and implementation procedures.

Planning and Development Authorities

In urban transformation, one of the Ministry's strongest powers is planning authority. In risky areas, reserve building areas, and parcels containing risky buildings, processes such as zoning plans, plan amendments, urban design projects, parceling, consolidation, subdivision, relinquishment, creation, and transfer of development rights may come into play.

The purpose of the Implementing Regulation of Law No. 6306 is to determine the procedures and principles regarding the implementation phases, such as planning, valuation of properties to be transformed, agreements with rights holders, and assistance to be provided. This shows that the Ministry and the Presidency have a central role not only in demolition but also in the new construction and planning process after the transformation.

When exercising planning authority, the Ministry/Presidency must act in accordance with the public interest, urban planning principles, the balance between social and technical infrastructure, property rights, and the principle of proportionality. Decisions regarding increased building density, changes in function, road and green space arrangements, social infrastructure decisions, or high-density construction may be subject to annulment proceedings if they contradict planning principles.

Ownership and Valuation Rights

In urban transformation projects, the Ministry and the Presidency are also authorized in the ownership and valuation processes. In area-based applications such as risky areas or reserve building areas, the value of existing properties, the value of the housing or workplaces to be given to the rights holders, loan amounts, exchange, purchase, and the sharing of new independent units form the basis of the administrative application.

This authority directly affects the economic rights of the property owners. If the value of the property is determined to be too low, the owner may not receive the compensation they are entitled to from the project. If the balance between the value of the new independent unit and the value of the existing property is incorrectly established, a dispute over debt or reimbursement may arise.

Transparency, objective valuation, accurate examination of comparable sales, and consideration of existing use and development rights are necessary in the ownership assessments conducted by the Ministry/Presidency. Owners must carefully review valuation reports, ownership lists, and debt schedules; if there are any erroneous findings, they must file an objection or pursue legal action within the prescribed time limit.

Ownership Decisions and Powers in the Share Sale Process

Under Law No. 6306, it is possible to sell the land shares of owners who do not agree with a decision made by a simple majority of shareholders in proportion to their shares. This process can be carried out by the Ministry/Presidency, urban transformation directorates, or administrations to which authority has been delegated. Sources from the Urban Transformation Presidency also state that the shares of owners who do not agree with a decision made by a simple majority can be sold to other shareholders who have reached an agreement through an auction process.

The sale of land shares is one of the areas where the Ministry/Presidency's authority most severely impacts the property rights of the landowner. This is because a landowner who does not participate in the decision may face the risk of losing their share of the land after certain procedures are followed. Therefore, the Ministry/Presidency or the authorized administration must meticulously carry out the processes of calling the meeting, calculating the simple majority, submitting the offer, preparing the valuation report, setting the auction date, determining the sale price, and registering the title deed.

The most common disputes in share sales are: incorrect calculation of the simple majority, exclusion of heirs, insufficient power of attorney, undervaluation of the valuation report, irregular notification, and incomplete sales files. If these irregularities exist, the owner can consider administrative appeals, annulment lawsuits, requests for suspension of execution, and, if the conditions are met, cancellation and registration of the title deed or compensation.

Purchase, Exchange and Expropriation Powers

The Ministry and the Urban Transformation Directorate may use tools such as purchasing or exchanging properties, transferring development rights, expropriation, and, if necessary, expedited expropriation in transformation projects. These powers are particularly important in the application of risky area and reserve building area regulations.

The duties of urban transformation directorates include separating and merging jointly owned properties, making land and plot arrangements, transferring development rights, carrying out expropriation, and, when necessary, conducting expedited expropriation procedures, within the scope of the tasks assigned in the transformation applications carried out by the Ministry under Law No. 6306.

The exercise of these powers has serious consequences for property owners. An owner who accepts a purchase or exchange offer may enter a process that could lead to a transfer of title. In the case of expropriation, the owner loses their property, and the process of determining the price begins. In expedited expropriation, the price is determined quickly by the court, allowing the administration to seize the property sooner. Therefore, property owners must carefully examine the offers, minutes, valuations, and expropriation decisions.

Rent assistance, interest subsidies, and financial aid

In urban transformation, the Ministry/Presidency intervenes in the process not only through coercive administrative procedures but also through financial support mechanisms. In applications concerning risky buildings, risky areas, or reserve building areas, owners, tenants, or holders of limited real rights may be provided with rental assistance, relocation assistance, interest subsidies, or loan support under certain conditions.

These supports constitute the social aspect of urban transformation. Because the evacuation and demolition of risky buildings creates a significant economic burden, especially for low-income property owners and tenants. Rent assistance or interest subsidies make the transformation process acceptable and feasible.

However, financial support provided by the Ministry/Presidency is not an automatic right. Application period, eviction date, owner/tenant status, address registration, risky building certificate, lease agreement, and other documents are important. If the application is rejected, administrative appeal and legal action can be considered.

The Role of the Ministry in Tax, Fee and Charge Exemptions

Certain tax, fee, and charge exemptions apply to conversion transactions under Law No. 6306. These include land registry fees, notary fees, stamp duty, municipal fees, revolving fund fees, and some financial burdens related to loan transactions.

The Ministry/Presidency establishes the basis for the exemption application with documents and administrative letters showing whether the transaction falls within the scope of Law No. 6306. The land registry office, notary public, municipality, or tax office often requests a letter indicating the scope of the transformation, a risky building certificate, information on reserve/risky areas, or a letter from the relevant administration.

If the exemption is not applied, the owner or contractor can apply for a refund of the unjustly collected fees and taxes. In this case, Ministry/Presidency documents are among the most important evidence proving that the transaction falls within the scope of the transformation.

Supervisory and Coordination Authority

Urban transformation requires the collaboration of numerous institutions. The Ministry/Presidency can facilitate coordination among municipalities, land registry offices, TOKİ (Housing Development Administration of Turkey), provincial special administrations, licensed institutions, building inspection organizations, valuation companies, banks, and other public institutions.

The duties of the Urban Transformation Directorate include ensuring cooperation and coordination with public institutions and organizations, universities, local governments, civil society organizations, the private sector, and international organizations. Furthermore, it is stipulated that public institutions and organizations will share digital and non-digital data and inventory information that can be used in urban transformation upon request by the Directorate.

This coordination authority aims to prevent transformation projects from being carried out in a fragmented, contradictory, and institutionally disconnected manner. However, data sharing and coordination must also be observed in terms of personal data protection, property rights, transparency, and the right to information.

Limits of the Ministry's Powers

Although the Ministry and the Urban Transformation Presidency have very broad powers, these powers are not unlimited. Every administrative action must comply with the law in terms of authority, form, reason, subject matter, and purpose. The action must be based on public interest, have a legal basis, be proportionate, and protect the fundamental procedural safeguards of those involved.

For example, the decision to designate an area as risky must be based on technical grounds. The declaration of a reserve building area must be in accordance with the purpose of Law No. 6306. A genuine simple majority must be formed for the sale of shares, and owners who do not agree with the decision must be notified in accordance with the offer procedure. Expropriation must be based on genuine public interest and fair compensation must be paid. Applications for rental assistance should not be arbitrarily rejected. Zoning plans must conform to urban planning principles and the balance of socio-technical infrastructure.

If these limits are exceeded, the Ministry/Presidency's actions can be challenged in administrative courts for annulment. A stay of execution can be requested if the implementation of the action would cause irreparable harm. If damage has occurred due to the unlawful action, a full judicial review lawsuit and claims for compensation may also arise.

Legal Remedies Against Ministry Actions

If the actions taken by the Ministry or the Urban Transformation Presidency are administrative in nature, an annulment lawsuit can be filed against these actions in administrative courts. Time limits may vary depending on the nature of the action in question. For actions falling under Law No. 6306, special time limits and, in some cases, expedited judicial procedures may apply.

The main transactions that could be subject to litigation are as follows:

Risk area decision,

The decision regarding the reserve development area,

Administrative procedures related to the identification of risky buildings,

Evacuation and demolition operations,

Administrative procedures related to the owner's decision and the sale of shares,

Ownership and valuation decisions,

Rent assistance or interest subsidy rejection procedures,

Zoning plan and parceling procedures,

Expropriation and expedited expropriation procedures,

Rejection of fee/charge exemption,

Administrative procedures in a purchase or exchange process.

Before filing a lawsuit, the action must be correctly identified. Is it a Ministry decision, a Presidency decision, an urban transformation directorate decision, a municipality decision, or a Presidential decree? Incorrectly identifying the wrong action or defendant can weaken the legal process.

What should property owners pay attention to during the Ministry process?

In an urban transformation project being carried out under the authority of the Ministry/Presidency, property owners should not remain passive. First, the status of the property must be determined: is it a risky building, a risky area, a reserve building area, or simply a plot of land after the demolition of a risky building under Law No. 6306?

Secondly, all documents must be collected. The land registry record, risk assessment report, demolition permit, owner's decision minutes, notifications, valuation report, zoning plan, entitlement list, rental assistance application, and any sales/expropriation documents should be examined.

Thirdly, deadlines must be followed. In urban transformation projects, the deadlines for lawsuits and appeals are often short. Notifications, announcements, e-Government notifications, neighborhood announcements, or publications in the Official Gazette can be important in terms of determining the start of the deadline.

Fourthly, technical support should be obtained. Cases involving risky areas, reserve building areas, valuation, zoning plans, share sales, and expropriation processes are technically complex. Not only legal objections but also reports from urban planners, civil engineers, surveyors, or real estate appraisers may be required.

Conclusion

In urban transformation, the Ministry's powers are central to the system established by Law No. 6306. The Ministry of Environment, Urbanization and Climate Change and its affiliated Urban Transformation Presidency have authority in a very broad area including risky areas, reserve building areas, risky buildings, planning, evacuation-demolition, ownership rights, valuation, share sales, expropriation, rental assistance, interest subsidies, fee exemptions, and inter-institutional coordination.

With the establishment of the Urban Transformation Directorate in 2023, the institutional structure of urban transformation practices was strengthened; the Directorate was given important tasks such as carrying out the duties and exercising the powers granted by Law No. 6306, preparing legislation regarding the transformation of structures and areas under disaster risk, and conducting preparatory procedures in the relevant area declaration processes.

However, broad authority does not mean unlimited intervention. Ministry and Presidency actions must comply with the principles of public interest, technical justification, proportionality, property rights, transparency, and judicial review at every stage. If a decision regarding a risky area or reserve development area is not based on technical data, if the simple majority procedure was not followed in the owner's decision, if the sale of shares was made at a low market value, if the expropriation does not serve a genuine public interest, or if the zoning plan is contrary to urban planning principles, these actions become subject to judicial review.

In conclusion, the Ministry's powers in urban transformation are essential tools for reducing disaster risk and ensuring safe construction. However, these tools must be used correctly. Property owners, contractors, and rights holders should carefully examine every action originating from the Ministry or the Urban Transformation Presidency in terms of authority, duration, notification, technical justification, valuation, title deed effect, and legal recourse. When the urban transformation process is managed correctly, a reasonable balance is struck between public interest and property rights; if managed incorrectly, the risky building problem can turn into lengthy administrative lawsuits, title deed disputes, expropriation disputes, and compensation claims.