Urban Renewal: How to deal with a reluctant tenant who stuns the project?

At the beginning of the road prior to the implementation of the Tama 38/1 project, the consent of most apartment owners is sufficient, but in the end, the agreement of all the apartment owners is required, and as there is no consent from the minority, a claim can be made to the Land Registry Supervisor to require the minority as well.

Urban Renewal: How to deal with a reluctant tenant who stuns the project?

The Urban Renewal Project, also known as CMA 38, consists of many stages, some of which are very important when it comes to project realization prospects. One of the first concerns tenants' consent: To move the project from the planning stage to the approval and execution stage, the consent of most apartment owners in the building is required. So how can tenants and attorneys handle cases where some tenants' refusal may jeopardize the entire project? This is what we are talking about in a video article with attorney Ilan Crater, who specializes in real estate law.

Tam questions: How to deal with apartment owners' opposition to the Tama project

By Attorney Ilan Crater

The Government Plan, Tama 38/1, aims to strengthen old buildings against the danger of earthquakes. According to the plan, apartment owners will allow developers who wish to build additional apartments in the building, in exchange for strengthening the building free of charge and without any charges, including appreciation tax, improvement levy and fees. Lawyer.
Apart from strengthening the building, the apartment owners will receive additional benefits such as renovating and renovating the building, lift installation, adding space and a balcony for every apartment and infrastructure replacement.

These changes in the building usually increase the value of the apartments by hundreds of thousands of shekels.

Why oppose the TAM?

The deal offered by the developers to the homeowners seems to be particularly lucrative, and indeed many are interested in promoting such ventures. However, despite everything, quite a few condominium owners are reluctant to take part in the project and even object to it.

Why should one object to what seems so worthwhile to him? A number of common arguments are based on such objections. In the face of these allegations, the attorney representing the interest of most tenants should negotiate and find possible solutions for the opponents.

Here are typical arguments used by the opponents, and answers that the lawyer can offer:

"I am not ready to live on a construction site and suffer from noise and dirt nuisance during the long construction period. I require to finance a rental outside the building"
Answer: By law, elderly or ill-health homeowners will indeed receive alternative housing-funded apartments during the construction period. However, since such a move would render the venture financially unprofitable for the developer, those who do not meet these conditions will not receive this benefit except in exceptional cases.

"My apartment is rented. If you start construction, the tenants will leave the apartment and I will lose the rent."
Answer: It is indeed unpleasant to live in a renovated building and it is possible that the tenants may leave the apartment. The solution is to reduce rents for the construction period. And even if the existing tenants refuse, experience shows that you can always find someone who will be happy to pay attractive rent, even at the cost of living on a "construction site".

This answer will usually lead to a further claim:
"Why would I lose rent over the construction period?"
Answer: In the long run, the loss of rents will be eliminated by sixty compared to the expected earnings in light of the significant increase in the value of dwellings due to the additions. The rate of rent you receive for the apartment will also increase as a result of the increase of the apartment and other additions.

"The developer needs to fund my rent difference"
Answer: The principle underlying urban renewal projects is to maintain equality among all apartment owners. If one owner receives any benefit, everyone will be entitled to the same benefit. The financial significance of compensating all apartment owners for the loss in rent (which according to the principle of equality will also be given to those who do not rent their apartment) is enormous, and in most cases is not worthwhile for the developer.

(Photo Archive: Skylance)

TAMA 38 KKL-JNF Project KKL Givatayim Real Estate Demolition and Construction Real Estate (Photo: Skylance, PR)

Compromise to earn

Insisting on certain requirements, which means economic feasibility for the entrepreneur, can lead to his retirement from the venture and a great difficulty in finding another entrepreneur who will agree to these conditions. This is particularly relevant in light of recent publications regarding a trend to cancel the 38/1 TAMA projects, which means that apartment owners may remain bald from here on out.

Even in ventures where condominiums, balconies or parking spaces will not be secured for reasons of economic insecurity for the entrepreneur, it is worth negotiating and reaching a compromise, with the understanding that even the most minimal proceeds, which offer renovation and renovation, will significantly increase the quality of life and value. The apartments.

Attorney and Notary Ilan Crater specializes in real estate, urban renewal - TAMA 38 and eviction of construction - and representation in courts.
Phone: 077-9971229
The article is courtesy of Zap Legal
The information presented in the article does not constitute or replace legal advice and does not constitute a recommendation for taking proceedings or avoiding proceedings. Anyone who relies on the information contained in the article does so at his own risk