Three years later, in 1984, Housing Development Administration Law (No: 2985) came into force which allowed for keeping the already established Fund outside the regular budget allocating its comprehensive sources of income which were integrated to the economic activities, aiming at expanded practices in credit provision for housing and housing production. In the same year a new and legal entity, the Housing Development and Public Participation Administration was also established with Law No.2983 to ensure that the system was adequately operating.
Since the Housing Development and Public Participation Administration had to undertake two different functions, in 1990 Housing Development Administration was transformed into a separate entity with Governmental Decree No:412.
The Housing Development Law, numbered 2985, is a framework law, which sets the basic principles, which would give direction to the solution of the housing problem in Turkey whose provisions are particularly relevant in terms of organizational and financial aspects. The basic goal in establishing the Fund was to provide the required public support through revenues earmarked for this purpose and to provide the required services through an administration created for this purpose in order to meet the housing needs at the national scale and to achieve an orderly process of urban development.
Duties of the Housing Development Administration (TOKİ) are as follows:
Since the date of establishment of TOKİ, the priorities through the context of the solutions of housing and urbanization problem have been changed. In this framework, new functions were added to the Housing Development Administration Law numbered 2985 due to changes by law (No:4966) on 06/08/2003. These functions are:
In parallel, under the Law No:5162, dated 05/05/2004 which amends the Housing Development Law;
After November 2002, TOKİ is affiliated with the Ministry of Public Works and Settlement. Then, in accordance with its founding Law, TOKİ is affiliated with the Prime Ministry under the Presidency's approval dated 15/01/2004.
Thus, with the latest legal regulations, crediting and supporting the projects towards preserving the historical construct and rural architecture are added to TOKİ's previously existing duty of renovation of squatter areas, which is one of the origins of modern urbanization.
Again, due to the targets defined with the Government's Emergency Action Plan within the context of adequate housing production and planned urbanization, there had been some re-organizational changes in the duties of the public institutions. In this framework, all the duties and the authority of the Urban Land Office have been transferred to TOKİ, with the Law no: 5273, dated 14/12/2004. Based on this legal arrangement, 64.5 million m2 of land has been passed on TOKİ's immovable portfolio. This Law will integrate the process of land development and housing production and will facilitate to provide efficiency in the aforementioned housing and urbanization implementations.
Hence, as reflected in its mandate, Housing Development Administration (TOKİ) is the single responsible public body within the housing sector in Turkey.
Since 1984, TOKİ has been acting effectively in providing affordable housing for the low and middle-income groups through innovative financial mechanisms. It has provided housing loans to approximately 1,2 million housing units by the end of 2004. Among this number, housing cooperatives have the biggest share. 84% of the housing units that were given credit have been produced by housing cooperatives and housing contractors.
In addition to the loans given to cooperatives, municipalities are also supported by TOKİ loans - facilitating new housing projects on lands they own for the provision of low-cost owner-occupied housing.
The extra reneuve generated from these for-profit projects is essential for the financing of TOKİ's future social housing projects. Filling the gap between short-term capital outlay for construciton and long-term receivables from mortgages, this program generates crucial capital for low and middle-income housing projects. Unitilizing a growing portfolio of inflation-adjusted long-term receivables, TOKİ is creating a solid foundation of revenue that will extend well into the future.