Yehuda Morgenstern, CEO of the Ministry of Construction and Housing said today that, "We are in a world of limited resources, if we had money for everything we would solve many problems in the country.
The previous CEO worked on a report on earthquakes and a solution to urban renewal, which found that there are about 30,000 units that need to be strengthened, when the cost per unit is about NIS 650,000. If you calculate the addition to the buildings, the estimate is a budget of NIS 7 billion - this is far beyond the capacity of my office."
At the Real Estate Center's Urban Renewal Summit, Morgenstern further said, "In the work plan, we increased the budget for strengthening buildings and we will see the result of this step in the future, but when the Treasury and the state make decisions in a world of limited resources, 7 billion is a lot and it is not a decision that is in the hands of my ministry." .
Morgenstern announced that a proposal will soon be submitted to the government that will include billions of shekels for this purpose.
"I don't think that in the seismic periphery the solution is urban renewal without bringing in money (land or taxation). The state needs to put its hand in its pocket and mobilize the entire government for this with a ten-year plan, when one or two billion will be allocated each year for this purpose."
"One of the biggest challenges is the authorities and the infrastructure. There is a clear mismatch between our desire to flood the market with supply and the authorities' desire to bring in more residents. We will bring all the resources to the authorities so that they can accept more residents and we will go towards them."
Ahead of the expected elections in the local authorities, Morgenstern said, "We are entering a year of elections in the local authorities and I expect that this will have an impact on the market. I estimate that there will be fewer agreements, but everything will be done in full coordination to generate motivation among them. We are working to give incentives, but the Treasury is opposed."
"In order to encourage the developers to enter the tenders, we proposed a postponement and spread of the payments, not only to postpone the payment to the contractor but also to the tenants. The contractor will pay 60 percent of the value of the apartment (land) and the rest in a spread and at a lower interest rate. This was true when the state was established and may be true even now. In the meantime We still haven't succeeded in convincing the Treasury. In any case, we hope that the prices will go down and that we won't get to that and it will be easier for the young couples to buy an apartment."
It is possible to bypass the authority of a local committee (Photo: Raz Rogovski)
"A significant program for the periphery"
Attorney Elazar Bamberger, chairman of the Urban Renewal Authority, said that "We are on the verge of promoting a government decision in which we will bring a significant plan for the periphery that follows the same recommendations that we published together with the Ministry of Housing, a report by a government committee, the Ministry of Defense, the Planning Director and all The government actors who formulated the promotion of regeneration in the periphery.
To do what should have been done a long time ago - mapping of all the cities at increased seismic risk in the first stage.
Mapping - identify the construction evacuation complexes that are closest to economics and plan them in a detailed construction evacuation plan and back it up with a government course of money, of a state budget that enables them to be economic."
Bamberger added that the authority concludes a very successful year in the field of urban renewal, even beyond the center of the country.
"Almost 40% of all building permits granted in 2022 were granted in urban renewal. As a government authority that primarily deals with building clearance and promotes the program in every way, we invest incentives of half a billion shekels in issuing building permits for building clearance. Of course, in a changing market and the climate we are in, an increase in interest rates, A massive reduction in demand, a market that is increasingly producing question marks, so it is clear that we cannot wait until next October for the situation we are in today."
"I remind those who have forgotten: the TMA expires in October and it is only until May that it is possible to submit a replacement plan for TMA 38. This thing must come from the government in a very clear statement. What happens on October 1st is another six months from today, it is zero time in my terms real estate, and explain that we are producing a complete alternative that is ripe for immediate implementation alongside the Shaked alternative that everyone understands that the market needs the time to adapt to.
Of all the local authorities with whom we did an inspection for cooperation in the decision that extends the validity of TAMA 38, the overwhelming majority, with a few exceptions, is the desire for the continuity of the program."
Bamberger was asked in connection with the latest settlement law, which contains a number of clauses that angered the local government, for example the waiver of the local government's right of veto on the announcement of Binui evacuation complexes and he replied: "We try to work with the local government in cooperation, this is the king's way. But it cannot be sanctified If a developer comes to us and says, 'I am promoting a plan and the local authority does not allow me because it also owns part of the land,' and we have to submit the plan to a district committee contrary to its position, we will investigate. If it is a planning debate, it is legitimate, but if it is a 'Nada that does not allow us to advance to a district committee, we, based on the authority I have in the law, can sign as the submitters of a plan and submit it to the head of the local authority. Our job is to identify the places where the law granted veto power to a player who is not supposed to receive it and handle it. We must remember that this is a plan that has already received the Authority approval at the beginning of the journey."
The real estate center
Ministry of Construction and Housing