Law proposal on new housing finance is in the General Assembly of the Turkish Grand National Assembly

The first issue of the Bill of Law Amending the Law on the Regulation of Public Finance and Debt Management of the New Housing Finance Program was accepted.

With the proposal, the general framework of the New Housing Financing Program is determined, the limits of the contributions within the scope of the program and penalty decisions are drawn up.

Accordingly, the installments will be contributed in order to facilitate real persons’ housing finance installment payments. For this, cash resources will be transferred to the relevant banks through a public bank to be determined by the President. The total principal amount of housing finance, which can be contributed within a year, will not exceed 220 billion liras.

Contribution will be made to those who will buy houses from projects that have not been sold before and are in the property of contractors, and projects that have not started or are still in production. In terms of housing projects that have not started yet or that are still in production, the financing to be provided for the houses whose ownership will be transferred to the contractors will also be paid in this context. Real estate developers and owners of land shares around the construction contract in return for the land share will also be considered as contractors.

The portion of the installment exceeding 30 percent of the household income will be covered by the Treasury.

Contributions; It will be provided for housing financing for real persons, which are charged by banks with sufficient solvency and demand contribution.

A measure equal to the portion of the financing installment price exceeding 30 percent of the household income of the real person in the first three years will be transferred to the budget of the Ministry of Treasury and Finance as a contribution from the appropriation scheme to be put for this purpose. The President will be authorized to determine the 30 percent rate in the middle of 30 percent to 50 percent, and to reduce the 3-year period to one year.

A 5 percent contribution share over the sale price of the house will be collected from the contractor’s account or the financing amount and transferred to the non-permanent accounts in the banks providing the financing. These amounts will be used for the payments of financing installments up to one year. Within the framework of the style and originals to be determined by the President; Some or all of this price can be deducted from the financing principal amount in advance, and the one-year period can be extended up to three years. The collected price cannot be claimed back by the contractors under any circumstances.

Reimbursement of contributions

According to the regulation, the designated public bank will notify the Ministry with a summary list of the total contribution price for the current month, within the first five working days of each month. The Ministry will transfer the requested contribution price to the bank on the first business day following the 15th of the notified month. The transfer day of this contribution and the installment payments of the financing will be determined on a one-to-one basis by the banks.

The repayment amounts of the contributions will be calculated with the easy interest method over the interest rate of the financing until the repayments start. If the banks exercise their right to recourse the repayment prices to the beneficiaries, no additional interest rate will be applied after the start of the repayments.

Regardless of whether the repayments are made by the beneficiaries, the banks providing the financing will be responsible for the full and timely transfer to the Ministry. In case the repayments are not made in full and on time by the banks providing the financing, the contribution repayments will be collected by the relevant tax office from the bank providing the financing, together with the delay increase to be calculated. In this context, in the event that the enforcement proceedings of the financings are initiated, the repayments to be calculated will be transferred to the designated bank to be given to the Ministry within 30 days at the latest after the start of the enforcement proceedings by the banks providing the financing.

In the repayment plan to be created for those whose installment price exceeds 30 percent of their household income but do not want to benefit from the financing contribution, the principal and interest rate/profit share price to be received in the relevant month can be deferred by adding them to the remaining principal.

In the event that these financings are requested to be closed before their maturity, in addition to the closing conditions specified in other legislation, if there is a deferred principal and interest rate / profit share amount, they can be closed by paying all of them. The prohibitive and restrictive decisions in other laws pertaining to this calculation method will not be applied.

The immovable is not assignable for a period of 5 years.

The acquired immovables, upon the request of the bank providing the financing, cannot be staged or transferred, and cannot be subject to a sale promise, with a five-year deadline from the date of financing, except in cases of unregistered acquisition.

In case the execution proceedings are initiated due to the default of the debtor, the period, assignment and sales promise cannot be mentioned, and upon the request of the bank providing the financing, it will be cancelled.

In the event that the valuation report prepared for the housing subject to the financing to be provided is false or contrary to reality, the administrative fine to be imposed on the real estate appraiser or real estate appraisal firm that prepared the report, according to the Capital Markets Law, will be applied by increasing the prices 10 times. This price cannot be less than ten percent of the sale price of the house subject to financing.

The bank providing the housing finance will be responsible for the determination of the entitlement of the contribution to be transferred and the accurate and full calculation of the contribution, within the framework of the submitted documents.

In case it is determined that the real individuals who will benefit from the contributions make false or deceptive statements; The contributions made will be withdrawn and an administrative fine of 5 percent of the used financing amount will be applied.

Penalty for misrepresentation

If it is determined that they have made false or deceptive statements to the contractors, an administrative fine of 25 percent of the declared sales price of the housing subject to financing will be imposed.

The price, maturity, interest rate / profit share of the financing to be provided by the banks, the maximum sales price of the houses to be financed, the scope of the real persons who will benefit from the contributions; to determine the subjects such as housing ownership, household income, household income increase coefficient and housing ownership of other persons in the household, and to differentiate the financing qualifications on the basis of provinces, to use the source to be transferred as a contribution, to terminate the contribution, to the contribution repayments, to the interest calculation method of the contribution repayments, The President shall be authorized to determine the terms and conditions of the maturity of these payments, the issues of collective payment before the due date, the procedures and principles regarding the implementation and control, to eliminate the hesitations that may arise regarding the implementation, and to determine other matters pertaining to the processes to be carried out.

Housing finances within this scope can be used until December 31, 2023, and the President will be authorized to extend this period until December 31, 2024.