Legal Basis: Law No. 6306 Article 5/2 | Implementation Regulation Article 16/2

For millions of citizens who own shanty houses, which they have built or bought over the years but do not have a title deed for, urban transformation is both an opportunity and a great source of uncertainty. “I don’t have a title deed, can I receive rent assistance? Do I have the same rights as a regular homeowner?” questions are among the most frequently asked by this segment. Article 5/2 of Law No. 6306 and Article 16/2 of the Implementation Regulation have granted shanty house owners the right to rent assistance; however, the conditions, payment method, and amount of this right differ from those of a regular titled property owner. This article addresses what rights shanty house owners have in urban transformation, what distinguishes them from regular property owners, how rent assistance is calculated, and important points to consider when applying, based on the current legislation and practices of 2026. (Law Art. 5/2 — Reg. Art. 16/2)

What is a Shanty House? Why is its Legal Status Critical?

A gecekondu is a structure built without a license or permission on land belonging to someone else or on public land. A gecekondu has two fundamental characteristics: there is no land title or it belongs to someone else; a building permit has not been obtained. These two characteristics remove its owner from the status of a “normal titled owner” under Law No. 6306.

However, Article 5/2 of the Law and Article 16/2 of the Regulation provide for a support mechanism specific to gecekondu owners. This mechanism is not the same as the monthly rent assistance granted to titled owners; it is a rent support based on the actual reality of gecekondu ownership and operating under different conditions. (Law Art. 5/2 — Reg. Art. 16/2)

Which Gecekondu Owners Can Benefit from Rent Assistance?

The Regulation has limited the rent support granted to gecekondu owners with a geographical condition: Only gecekondu owners located in a risky area can benefit from this support. (Law Art. 5/2 — Reg. Art. 16/2)

The importance of this distinction stems from the following: The determination of a risky structure applies to titled independent sections. Since an untitled gecekondu is not registered in the land registry as an independent section, it is not subject to the normal risky structure determination process. Gecekondus can enter the process by the inclusion of an entire area in transformation within the scope of a risky area declaration. Therefore, the owner of a gecekondu that falls solely within the scope of a risky structure cannot benefit from the support under this article; to benefit from the support, the gecekondu must be located within the boundaries of a risky area declared by a Presidential Decree.

On the other hand, while the Regulation states that the relevant institutions can provide rent support to squatter owners in risky areas, it also reveals that this support is not mandatory but discretionary. In other words, the Presidency, Municipality, or TOKİ, which implements the application, has the discretion to decide whether or not to provide rent assistance to squatter owners. (Y. Md. 16/2)

How Does Rent Assistance for Squatter Owners Differ from That for Regular Owners?

The comparative table of these two groups clearly shows the difference:

How Much Will Be Paid to the Shanty House Owner?

Shanty house owners are paid two months’ rent assistance in a lump sum. (Reg. Art. 16/2)

This calculation is based on the amount of monthly rent assistance paid to titled property owners. A concrete example with current figures for 2026 is as follows:

This amount is calculated to be the same as the relocation assistance paid to tenants without title; since both are paid as a one-time sum, equivalent to double the owner’s monthly amount. From this perspective, the shantytown owner receives the equivalent of the tenant’s one-time relocation assistance, not the titled owner’s 18 months of rent assistance.

Reason Why Shantytown Owners Receive Less Support Than Titled Owners

The titled owner is the person defined by the Law as the primary rights holder; as the legal owner of the land share, they both lose their property and gain the right to an apartment in the new structure. The shantytown owner, on the other hand, claims rights over a structure they actually inhabit; however, this claim does not arise from a legal title registration, but from long-term de facto use. (Art. 5/2 of the Law)

Therefore, the Law has considered the squatter not for the 18 months of monthly rent assistance received by the registered owner, but within the scope of a shorter-term and one-off support. The actual ownership rights issue of the squatter — that is, whether they will be allocated a place in the new structure to be built after the transformation — is independent of rent assistance and is determined by a separate legal process. (Law Art. 5/2 — Reg. Art. 5)

Can a Squatter Receive Rent Assistance Without a Risky Area Designation?

No. Article 16/2 of the Regulation explicitly uses the phrase “squatters in a risky area.” If an unregistered squatter property is in a location not declared as a risky area, the relevant institutions do not have the authority to provide rent support. (Reg. Art. 16/2)

In this case, the squatter’s options are as follows: to wait for the area to be declared a risky area in the future; or to correspond with the Municipality or Ministry for a risky area application. The process of declaring a risky area can also be initiated ex officio by the Presidency without the request of rights holders. (Law Art. 2/d)

Proof of Squatter Ownership: Required Documents for Application

Unlike a registered owner, a squatter has an additional burden of proof, documenting both the existence of the squatter property and their own use of it. The following documents are typically requested for the application:

Identity document; declaration document of risky area stating that the structure is located in a risky area; evidence of actual use of the structure — electricity, water, natural gas bills or address registration document from the Directorate of Population; if possible, a document obtained from the municipality regarding the structure — tax registration, unauthorized structure detection, numbering certificate, etc.; invoice for the last 3 months prior to evacuation, proving the date of residency; Ziraat Bank current TL account passbook or IBAN information.

A title deed cannot be requested from the owner of a gecekondu; however, some institutions may also request a copy of the title deed from gecekondu owners who have a shared title deed or a land title deed. In this case, since the land title deed belongs to a third party, the gecekondu owner only submits documents of actual use. (Reg. Art. 16/2)

Where to Apply?

The institution to which the gecekondu owner will apply is the same as the institution managing the risky area. If the Urban Transformation Presidency is carrying out the application, then to the Presidency; if TOKİ is carrying it out, then to TOKİ; if the Municipality is carrying it out, then the application should be made to the relevant municipality. In Istanbul, since the Urban Transformation Presidency has delegated authority to district municipalities, applications must be made to the district municipality. (Reg. Art. 16/2)

Additionally, applications can be made via the e-Government Gateway through the “Urban Transformation Project Rent Assistance Application” screen; however, since the set of documents to be uploaded to the system for gecekondu owners’ applications may differ from those of titled property owners, a physical application might be safer.

Gecekondu Owner’s Entitlement After Transformation

Beyond the issue of rent assistance, the question that most concerns the squatter owner is this: Will I be able to get an apartment in the new building to be constructed after the transformation?

The answer to this question is shaped by the status of the land on which the shanty is built and by Article 5, Paragraph 2 of the Law. (Law Art. 5/2) The basic rule is:

For squatter owners on public land, the Law can offer the opportunity to acquire housing or a workplace with one hundred percent credit through TOKİ or the Administration. Squatter owners on private land, however, must either reach an agreement with the landowner or pursue legal avenues. The one hundred percent credit support that can be provided to squatter owners also depends on whether that person is poor or low-income. The Ministry can allocate housing for individuals in this group within the framework of special protocols. (Law Art. 5/2 — Regulation Art. 5)

Since this issue of entitlement does not directly fall within the scope of rent assistance, it also requires separate legal consultation.

Can a Squatter Owner Use Interest-Subsidized Credit?

Yes. Within the framework of Article 7/6 of Law No. 6306, squatter owners can also benefit from interest-subsidized urban transformation credit if they are located in a structure within a risky area. Like tenants who have resided in a risky structure for at least one year, squatter owners can apply through banks with Ministry protocols. (Law Art. 7/6)

The rule that rent assistance and interest support cannot be used simultaneously also applies to squatter owners. (Regulation Art. 16/7)

Can a Squatter Owner Benefit from the ‘Half from Us’ Campaign?

The “Half of it is from Us” campaign (Istanbul only, until December 31, 2026) is fundamentally a support mechanism targeting owners of independent units with title deeds. Whether shantytown owners can benefit from this campaign depends on whether the risky area implementation where the shantytown is located is carried out within the scope of “Half of it is from Us”. In this regard, it is recommended that the relevant unit of the district municipality or the Urban Transformation Presidency provide direct information.

Practical Advice

Learn the boundaries of risky areas. Confirm which risky area declaration your shantytown falls under, either from the official website of the Urban Transformation Presidency or through the local headman’s office (muhtar). If you are not within a risky area, the right to rent assistance does not arise under this article. (Reg. Art. 16/2)

Prepare your residency documents in advance. The most important proof for an owner of a building without a title deed are documents proving residency. Before evacuation, keep your utility bills from the last 3 months, address registration documents, and if possible, official letters from the municipality regarding the structure.

Don’t miss the application period. For shantytown owners too, a one-year application period is peremptory (leads to forfeiture of rights). The application must be made within 12 months from the date of evacuation. (Reg. Art. 16/4)

Open a Ziraat Bank account in advance. Payments are only made to a Ziraat Bank IBAN; keep the account open before applying.

Do not request rent assistance and interest support simultaneously. For shantytown owners too, these two supports cannot be used simultaneously; the choice must be made before applying. (Reg. Art. 16/7)

Summary Table of Eligibility Groups

Why is Expert Legal Support Necessary?

The urban transformation process for a slum owner is based on a much more complex legal framework than that for a deeded owner. As 2M Law Office, the most common problems faced by slum owners during the urban transformation consultancy process we conduct throughout Istanbul, especially in Tuzla, are as follows:

Uncertainty regarding the determination of the risky area boundary and whether this boundary includes the parcel where the shanty is located. The relevant institution’s refusal to provide rent assistance despite the property being within the area boundary. Legal assessment of whether the shanty owner can benefit from housing rights after urban transformation, in addition to rent assistance. Management of the landowner’s claims over the shanty.

For the resolution of such legal issues, the support of an urban transformation lawyer ensures both the correct application for rent assistance and effective representation in housing rights negotiations after transformation. 2M Hukuk Avukatlık Ofisi, serving as an Istanbul urban transformation lawyer and Tuzla lawyer, provides the necessary urban transformation consultancy to ensure shanty owners do not suffer rights loss during the process.

Conclusion

In accordance with Article 5/2 of Law No. 6306 and Article 16/2 of its Implementing Regulation, shanty owners located in risky areas can also benefit from urban transformation rent assistance; however, this assistance is provided as a one-time payment of a two-month amount, unlike the 18-month monthly payment for registered owners. The assistance is discretionary; meaning the relevant institution has the power of discretion. The burden of proof for documenting shanty ownership is heavier than that for registered owners, and applications can only be made for structures within the scope of risky areas. (L. Art. 5/2 — R. Art. 16/2)