---

What is the role of the municipality in urban transformation?

The powers of municipalities in urban transformation vary depending on the legal basis under which the transformation is carried out. In Türkiye, when urban transformation is mentioned, the Law No. 6306 on the Transformation of Areas Under Disaster Risk usually comes to mind. However, municipalities have significant duties and powers not only under Law No. 6306, but also under Article 73 of the Municipalities Law No. 5393, the Zoning Law No. 3194, the Planned Areas Zoning Regulation, and other relevant legislation.

Therefore, it is not possible to answer the question "What can a municipality do in urban transformation?" with a single sentence. In some cases, the municipality may be the authority directly carrying out the transformation project. In other cases, it is the authority that monitors evacuation and demolition processes in the risky building process. In some cases, it is the authority that issues building permits and occupancy permits. In some projects, zoning plans, parceling, fee exemptions, road relinquishments, infrastructure connections, and inspection processes are carried out through the municipality. In areas with metropolitan municipalities, the division of authority between the metropolitan municipality and the district municipality should be evaluated separately.

The purpose of Law No. 6306 is to ensure the creation of healthy and safe living environments in areas at risk of disaster and in properties containing risky structures. To achieve this goal, the law grants various powers to the Ministry, the Urban Transformation Presidency, TOKİ (Housing Development Administration), municipalities, and other administrations. In return, Article 73 of Law No. 5393 on Municipalities allows municipalities to declare urban transformation and development project areas and to implement projects in these areas. Metropolitan municipalities are authorized to declare urban transformation and development project areas within their boundaries and adjacent areas; district municipalities may also implement projects within their own boundaries if deemed appropriate by the metropolitan municipal council.

Therefore, the municipality's authority must be determined separately in each specific case. Is the property a risky building, a risky area, a reserve building area, or an urban transformation and development project area under the municipal law? Is the transformation being carried out by private legal entities, the municipality, the Urban Transformation Directorate, or TOKİ (Housing Development Administration of Turkey)? Which authority will issue the permit? To whom will the application for share sale be submitted? From whom will the fee exemption be requested? The answers to these questions determine the municipality's authority.

Powers of the Municipality under Law No. 6306

In urban transformation projects under Law No. 6306, municipalities are often involved in the process as "administrators." However, this does not mean that every municipality has unlimited authority in every process. Law No. 6306 and its Implementing Regulation establish a system centered around the Ministry and the Urban Transformation Presidency; municipalities, on the other hand, may act as implementers, supervisors, licensing bodies, administrators responsible for demolition processes, or as administrations to which authority has been delegated in specific areas.

In the process of identifying risky buildings, one of the most visible powers of the municipality is in the evacuation and demolition phase. After the identification of a risky building is finalized, the building owners are given a certain period of time to evacuate and demolish the building. The regulation stipulates that if the evacuation and demolition of risky buildings cannot be carried out, the administration will report information and documents regarding these buildings to the directorate at certain intervals, and in cases where the owners do not demolish the building, the owners will be held responsible for the evacuation and demolition costs incurred or commissioned by the Presidency or the Administration, in proportion to their shares.

This authority demonstrates the municipality's significant role in public safety. The continued use of a building that has been definitively deemed a risky structure poses a risk to life and property for owners, tenants, and those in the surrounding area. At this stage, the municipality is not merely a passive correspondence body; it can assume responsibility for the actual execution of the evacuation and demolition process, the disconnection of infrastructure subscriptions, the safe demolition, and the entry of post-demolition information into the system.

However, the municipality cannot act as an authority that arbitrarily determines the status of a building as risky. The determination of a building as risky is based on a technical report and an inspection by authorized organizations. The municipality fulfills its duties as stipulated by law and regulations in this process; however, it cannot act in a way that eliminates the property owners' rights to object and sue.

The Municipality's Powers in the Demolition Process of Risky Buildings

The demolition process for risky buildings is one of the areas where municipalities exercise their authority most concretely in urban transformation. After a building is definitively identified as risky, owners are given a deadline to demolish it. In practice, owners are initially given time to demolish risky buildings; if demolition does not occur within this period, an extension is granted, followed by demolition by the administration. The removal of the risky building annotation from the land registry and the addition of a statement indicating that the property falls under the scope of Law No. 6306, following the demolition of the risky building, have also been clarified with recent regulatory changes.

The municipality's powers in the demolition process can be summarized under the following headings:

Obtaining confirmation of the risky building status

Property owners are notified of the eviction and demolition

Checking whether the demolition has taken place at the end of the given period,

If necessary, correspondence will be made with the relevant institutions to interrupt infrastructure services

If the owners do not carry out the demolition, the demolition process will be initiated by the administration

Collection of demolition costs from property owners in proportion to their shares

Entering information about the demolished building into the system,

Correspondence regarding title deed and zoning procedures after demolition.

The municipality must act in accordance with the law when exercising these powers. Demolition cannot be carried out before a building is definitively deemed risky. Owners must be properly notified. Demolition must be carried out safely. Neighboring plots, public areas, infrastructure lines, and environmental safety must be considered. Otherwise, the municipality may face legal and administrative liability.

Authority to Issue Building Permits

In urban transformation projects, after an old, risky building is demolished, a building permit is required before construction of a new building can begin. A building permit is one of the most important zoning authorities of a municipality. According to the Zoning Law No. 3194, construction without a permit is generally not possible. Applications for a building permit are made based on the title deed or a document equivalent to a title deed, along with architectural, structural, electrical, mechanical, and other technical projects. Buildings must comply with the law, zoning plan, regulations, permit, and its annexes.

In urban transformation projects, the municipality's authority to issue building permits is not limited to document verification. The municipality also inspects the new building's compliance with the zoning plan, plan notes, setback distances, floor height, floor area ratio calculations, parking requirements, fire regulations, earthquake regulations, building inspection systems, and other technical regulations.

For both property owners and contractors, a building permit is a critical threshold. This is because the delivery period in contracts often starts from the date of the building permit. If the contractor cannot obtain a permit, they cannot start construction. The permit project also reveals whether the independent units promised to the property owners can actually be built. Therefore, if the municipality approves an illegal or incomplete project during the permit process, it may lead to permit cancellation, construction stoppage, property owner-contractor disputes, and administrative liability in the future.

Authority to Issue Building Occupancy Permits

In urban transformation projects, another important authority of the municipality is the power to issue occupancy permits. An occupancy permit is a document certifying that the new building has been completed in accordance with the building permit and its annexes, and that there are no legal impediments to its use. Under the Zoning Law No. 3194 system, when a building is fully or partially completed, an occupancy permit must be obtained from the municipality or governorship that issued the permit before it can be used.

In urban transformation projects, occupancy permits are of great importance. This is because, from the owner's perspective, the actual handover is not simply the transfer of keys. The independent unit must be completed in accordance with the building permit, project plans, technical specifications, common area layouts, and relevant legislation. Before issuing an occupancy permit, the municipality checks the building's compliance with the permit's attached projects, the completion of common areas, technical documents, building inspection processes, and the opinions of relevant institutions.

If the municipality issues an occupancy permit for a building that is inconsistent with or incomplete according to the permit, legal problems arise. Conversely, if the municipality unfairly refuses to issue an occupancy permit even though the building has been completed in accordance with the permit, the owner or contractor can pursue administrative appeals and legal action. Therefore, the municipality's authority to issue occupancy permits is important both for supervision and for enabling property owners to legally use their new independent units.

Municipality's Zoning Plan and Planning Authorities

In urban transformation projects, one of the most strategic powers of the municipality is the authority to create and implement zoning plans. Transformation projects are often carried out according to the existing zoning plan conditions. However, in some areas, changes to the zoning plan, parceling, consolidation, subdivision, road dedications, regulation of public areas, or decisions regarding social facilities may be necessary.

In the general urban planning system, municipalities are responsible for the preparation, amendment, public display, and evaluation of objections to master and implementation zoning plans within their respective jurisdictions. In areas with metropolitan municipalities, the distinction between metropolitan and district municipalities should also be considered in terms of master and implementation zoning plans.

Article 73 of the Municipalities Law No. 5393 also grants municipalities the authority to designate urban transformation and development project areas and to carry out planning in these areas. Metropolitan municipalities are authorized to prepare zoning plans, parceling plans, building construction permits, occupancy permits at all scales, and to exercise the powers granted to municipalities in the Zoning Law No. 3194 regarding urban transformation and development projects to be carried out by metropolitan municipalities.

This provision is particularly important because, in urban transformation projects under Article 73 of Law No. 5393, the municipality can become not only the authority that issues permits but also the authority that plans and implements the project. However, this authority must be exercised within a balance of public interest, urban planning principles, planning guidelines, and property rights. The municipality cannot designate transformation areas solely for the purpose of generating revenue, providing advantages to specific individuals, or excessively interfering with property rights.

Powers under Article 73 of the Municipalities Law No. 5393

Article 73 of the Municipalities Law No. 5393 grants municipalities the authority to implement urban transformation and development projects. This authority differs from that of Law No. 6306. Law No. 6306 is primarily based on the concepts of disaster risk, risky buildings, risky areas, and reserve building areas. Article 73 of Law No. 5393, on the other hand, allows municipalities to designate project areas for urban transformation and development purposes and to implement projects in these areas.

Within this scope, municipalities;

It can identify urban transformation and development project areas,

The city council can make a decision,

Within metropolitan boundaries, the metropolitan municipality may be the competent authority

The district municipality can implement the project within its own boundaries if the metropolitan municipal council approves

They can prepare or have prepared zoning plans and land subdivision plans,

It can manage the licensing and building occupancy permit processes

The agreement can play a role in eviction, demolition, and expropriation processes

The municipality may consider properties under its ownership within the scope of the project.

It is observed that within the scope of Article 73 of Law No. 5393, the evacuation, demolition, and expropriation of buildings located in urban transformation and development project areas will be based on agreement, some publicly owned properties may be transferred to municipalities, and there are financial regulations in place in the project areas.

However, the authority granted under Article 73 of Law No. 5393 should not be confused with the authority granted under Law No. 6306. The determination of risky buildings, the designation of risky areas, reserve building areas, the sale of shares with a simple majority under Law No. 6306, and the powers of the Presidency belong to the system of Law No. 6306. In a transformation project carried out under Article 73 of the Municipal Law, municipal and zoning law tools such as municipal council decisions, project area declarations, zoning plans, and expropriation come to the forefront.

The Municipality's Role in the Share Sale Process

Under Law No. 6306, it is possible to sell the shares of owners who do not agree with a decision made by a simple majority of shareholders in proportion to their shares. In this sales process, the municipality may act as the "Administration" or, if authority has been delegated, as the implementing body. The Urban Transformation Presidency's guide to the simple majority sales process states that the shares of owners who did not agree will be sold to other shareholders who have reached an agreement through an auction at a price not less than the market value; if no buyer emerges at the auction, in some cases the relevant administration will activate the purchase mechanism.

The municipality's role in this process varies depending on the specific authority granted. If authority has been delegated, the municipality can review the sales file, check meeting and decision documents, verify whether notifications have been served, and conduct the valuation and tender process. If there is no delegation of authority, these processes can be carried out through the Urban Transformation Directorate or the relevant department.

The sale of shares constitutes a serious interference with property rights, therefore the municipality must exercise extreme caution in this process. If there is no valid simple majority decision, if the meeting notice was irregular, if the offer was not communicated to the owner who did not participate in the decision, if the valuation report is flawed, or if the heirs were not included in the process, the sale of shares may become illegal. If the municipality ignores these deficiencies and proceeds with the transaction, the sale may be subject to a lawsuit for annulment.

The Municipality's Powers Regarding Fees and Charges

In urban transformation, the financial authority of municipalities is also important. Building permits, occupancy permits, zoning procedures, road and sewerage participation fees, project approvals, and various municipal fees can incur significant costs in practice. However, there are certain tax, fee, and charge exemptions under Law No. 6306.

In areas at risk, reserve building areas, and parcels containing risky structures, regulations stipulate that municipalities will not collect fees or charges for new construction areas up to a certain percentage of the existing construction area, when construction is carried out by individuals or private legal entities. Article 16 of the Implementing Regulation stipulates that tax, fee, and charge exemptions under Law No. 6306 shall apply regardless of compliance with zoning regulations, and that there are specific limits regarding municipal fees.

Therefore, when the municipality demands fees and charges for a project within the scope of urban transformation, it must take into account the exemptions in Law No. 6306. If a fee is charged for a transaction that falls within the scope of the exemption, the owner or contractor can apply for a refund. Conversely, the municipality may demand a fee for areas or transactions that are not covered by the exemption. In particular, issues such as existing construction areas, new construction areas, changes in function, and consolidation with vacant plots should be carefully examined in fee calculations.

Municipality's Inspection Authority

In urban transformation projects, the municipality's supervisory authority is not limited solely to the licensing and occupancy permit stages. The municipality is also responsible for monitoring construction that violates zoning regulations, identifying unauthorized constructions, issuing construction suspension reports, implementing necessary administrative sanctions, and ensuring public safety.

The following inspection areas stand out in urban transformation projects:

Whether or not construction was carried out without a permit,

Whether there are any constructions that are contrary to the license and its annexes,

Whether any floors or areas outside the project scope have been created,

Whether the common areas were constructed in accordance with the project,

Whether the setback distance and comparable value calculations have been complied with,

Compliance of parking areas, shelters, fire escapes, elevators and technical areas with regulations,

Whether the building inspection process was carried out properly,

Whether the deficiencies prior to resettlement have been rectified.

The municipality's inspection authority can also be in favor of the property owners. For example, if a contractor is constructing a building that violates the permit or technical specifications, the property owner can apply to the municipality for an inspection. If the municipality fails to conduct the necessary inspection or issues a permit/occupancy certificate illegally, a dispute over administrative responsibility may arise.

The Municipality's Authority to Expropriate and Acquire Real Estate

Municipalities can also play a role in expropriation, purchase, exchange, and property acquisition processes in urban transformation projects. This authority is particularly important in urban transformation and development project areas covered by Article 73 of the Municipalities Law No. 5393. The municipality may wish to acquire properties, enter into agreements, or, if necessary, resort to expropriation for the public good within the project area.

Article 73 of Law No. 5393 envisages an approach based on reaching an agreement in the evacuation, demolition, and expropriation of buildings located in urban transformation and development project areas. However, if an agreement cannot be reached, expropriation processes may be initiated. In this case, Law No. 2942 on Expropriation, property rights, the principle of fair compensation, and administrative judicial review become important.

Under Law No. 6306, mechanisms such as purchase, exchange, expedited expropriation, or share sale may be considered by the Presidency, TOKİ (Housing Development Administration), or the Administration. If the municipality acts as the authorized administration in this process, it must clearly state the basis of the transaction. Is the transaction based on Law No. 6306, Article 73 of Law No. 5393, or Law No. 2942? This distinction is crucial in terms of the statute of limitations, the competent court, and the legal defense.

Municipalities' Infrastructure and Public Service Powers

Urban transformation is not just about renovating buildings. Water, sewage, roads, parking, sidewalks, rainwater drainage, landscaping, parks, social facilities, and transportation connections are also important for the new structure. The municipality is responsible for ensuring the integration of the transformation project with the environment and the city in terms of local public services.

The municipality's powers in this area can be summarized as follows:

Issuance of road level and canal level documents,

Coordination of infrastructure connection permits,

Road abandonments and public space arrangements,

Evaluation of environmental planning and landscape conditions,

Checking parking liabilities,

Monitoring of waste, excavation and demolition waste processes,

Maintaining a balance between public spaces and social amenities.

In urban transformation projects, the municipality should consider not only the building within the plot but also the environmental impact of the project. Increased density leads to increased need for roads, parking, infrastructure, and social facilities. In this respect, the municipality's planning and licensing authority should function as a filter protecting the public interest.

Limits of Municipal Powers

Although municipalities have broad powers in urban transformation, these powers are not unlimited. In all its actions, the municipality is bound by the principles of the Constitution, laws, regulations, zoning plans, public interest, equality, proportionality, and property rights. The municipality cannot issue unlawful permits, facilitate irregular share sales, eliminate property owners' right to object, or disregard the principles of the zoning plan under the pretext of acting for transformation purposes.

The boundaries of municipal authority are particularly important in the following areas:

Demolition cannot be carried out before the building is deemed at risk.

Licenses cannot be issued in violation of zoning plans and regulations.

Occupancy permits cannot be granted for structures that violate building permits.

Share sales cannot be made without a valid simple majority and notification.

Fee exemptions should be applied if the legal conditions are met.

Expropriation must be based on the public interest and the principle of fair compensation.

Plan amendments must comply with urban planning principles and the balance between socio-technical infrastructure.

Owners' rights to sue and object cannot be obstructed.

When these limits are exceeded, municipal actions may be subject to annulment proceedings in administrative courts. Furthermore, if damages have resulted from the unlawful action, a full judicial review lawsuit and claims for compensation may arise.

What kinds of lawsuits can be filed against municipal actions?

The types of lawsuits that can be filed against municipal actions in urban transformation projects vary depending on the nature of the action. Administrative actions taken by the municipality can be subject to annulment lawsuits in administrative courts. For example, administrative actions related to building permits, occupancy permits, demolition orders, zoning plans, parceling, share sales processes, expropriation decisions, or fee collection procedures may give rise to different legal avenues.

The main avenues of legal action are as follows:

Cancellation of the risky building demolition process,

Cancellation of the eviction process,

Cancellation of the building permit,

A lawsuit against the cancellation of the building occupancy permit or the refusal to grant an occupancy permit

Cancellation of the zoning plan amendment,

Cancellation of the parceling process,

Cancellation of the share sale transaction,

A lawsuit for refund or cancellation against fee/charge collection

Cancellation of the expropriation decision,

A full judicial review case for damages arising from an unlawful action by the municipality.

In administrative proceedings under Law No. 6306, the time limits for filing lawsuits may be short due to special provisions. Therefore, property owners should not passively observe municipal proceedings, but carefully monitor the deadlines from the date of notification or learning about them.

What should be considered when filing a complaint against the municipality?

Applications to the municipality regarding urban transformation must be in writing. Verbal applications or telephone calls will not constitute evidence later. When submitting a petition to the municipality, the owner or their representative must clearly state the property's block and parcel information, independent unit number, risky building or transformation status, the legal basis of the request, and the desired action.

Applications that can be made to the municipality may include the following:

Request for information regarding the demolition process of risky buildings

An appeal against the demolition order

Request for review of the license file,

Requesting copies of project and permit documents,

Complaint regarding manufacturing contrary to the license,

Inquiring about the status of the housing application,

Request for exemption from fees,

Request for refund of unjustly collected fees,

Reporting deficiencies in the share sale file,

Objection to the public display of the zoning plan

Objection to the land subdivision process.

In addition to the applications, the following documents must be attached: title deed, power of attorney, risk assessment certificate, decision minutes, contract, photographs, technical report, expert report, or payment receipts. This ensures that the municipality can make its assessment based on concrete documentation when processing the application.

The Most Frequent Problems Regarding the Powers of the Municipality

One of the most frequent problems regarding the authority of municipalities in urban transformation is the confusion of jurisdiction. Property owners often do not know whether the municipality, the Urban Transformation Directorate, the Provincial Directorate of Environment, Urbanization and Climate Change, the metropolitan municipality, or the district municipality has the authority. This confusion can lead to missed application and litigation deadlines.

The second problem arises in the licensing and occupancy permit processes. If the contractor cannot obtain the license, the project is delayed. Even if the license is obtained, if the occupancy permit cannot be obtained, the handover to the owners is incomplete. The municipality must act in accordance with the regulations in the licensing and occupancy permit process; and the owner must follow these documents.

The third problem lies in the demolition process. Demolishing a building before it has been officially declared risky or before official notification has been given may be illegal. Conversely, delaying demolition for a long time, even after a building has been officially declared risky, also creates a risk to life safety.

The fourth issue concerns share sales and simple majority transactions. The municipality or authorized administration must verify whether a simple majority has actually been formed, whether notifications have been served, and whether a valuation report exists.

The fifth issue concerns fees and charges. The fact that municipalities demand fees or charges for transactions exempt under Law No. 6306 leads to refund disputes.

Conclusion

In urban transformation, the municipality's powers are evident at almost every stage of the process. The municipality plays a significant role in the demolition of risky buildings, the issuance of building permits, occupancy permits, zoning plans and parceling procedures, fee and charge exemptions, infrastructure and public services, and in some cases, the sale of shares and expropriation processes. However, these municipal powers vary depending on whether the process is based on Law No. 6306, Article 73 of Law No. 5393 on Municipalities, Law No. 3194 on Zoning, or other legislation.

Article 73 of the Municipalities Law No. 5393 grants municipalities the authority to designate urban transformation and development project areas and to implement projects in these areas. Within the boundaries of metropolitan municipalities and their adjacent areas, this authority belongs to the metropolitan municipalities, and district municipalities may also implement projects within their own boundaries if deemed appropriate by the metropolitan municipal council. In the system governed by Law No. 6306, municipalities often act as administrators in matters such as eviction-demolition, permits, occupancy permits, share sales, and implementation processes; however, some powers are exercised jointly with the Urban Transformation Presidency, the Ministry, TOKİ (Housing Development Administration of Turkey), or provincial directorates.

In conclusion, the municipality is not merely a "licensing authority" in urban transformation. It is also a powerful administrative actor influencing public safety, zoning regulations, building conditions, socio-technical infrastructure balance, construction in accordance with permits, the occupancy process, and in some cases, the implementation of the transformation project itself. However, this power is limited by law. The municipality is obligated to act in accordance with property rights, procedural safeguards, notification rules, zoning plans, fee exemptions, and judicial oversight.

The most accurate approach for property owners, contractors, and other rights holders is to first determine the municipality's capacity to act. Is the transaction carried out under Law No. 6306, Article 73 of Law No. 5393, or Law No. 3194 on Zoning? Is the authorized municipality a metropolitan municipality, a district municipality, or the relevant directorate or the Urban Transformation Presidency? Without accurate answers to these questions, any application or lawsuit may be incomplete.

When the municipality's powers are used correctly in urban transformation, the process proceeds safely, controllably, and in accordance with the law. If the limits of authority are exceeded, procedural rules are violated, or the rights of property owners are not protected, municipal actions may be subject to annulment lawsuits, injunctions, full judicial review lawsuits, fee refunds, or licensing/occupancy permit disputes. Therefore, municipal actions in urban transformation must be carefully monitored at every stage, based on documentation, legislation, and deadlines.