The Ministry of Construction and Housing and the new Amidar company signed today (Thursday) an update to the urban renewal agreement.
The agreement establishes a new model of activity, which enables the realization of projects through their sale and the possibility of collaborations with entrepreneurs from the private sector.
The signing of the activity model update is intended to support the operational phase of the urban renewal processes promoted by the Ministry of Construction and Housing and Amidar in public housing buildings, in favor of upgrading the old housing stock, renewing the tenants' living environment, while investing most of the public housing project space.
In September 2016, Amidar signed an urban renewal agreement with the state, according to which Amidar will serve as the executive arm of the Ministry of Construction and Housing in these projects (evacuation-construction and NPA 38). According to the principles of the previous agreement, Amidar will promote urban renewal projects. , Continued execution and ending with the occupancy of the tenants and the sale of the new apartments independently as an "entrepreneur".
The agreement referred to the promotion of projects in buildings with at least 50% public housing apartments, in such a way that 70% of the profits were earmarked for the "Periphery Fund", for the purpose of strengthening buildings against earthquakes and promoting urban renewal projects in the periphery.
After an in-depth examination and upon completion of the planning phase of the renewal projects promoted by Amidar, the company's board of directors and the Ministry of Construction and Housing decided on how to implement the projects promoted by Amidar as an entrepreneur - for sale or cooperation with private sector companies. From the possibility of full initiation by the company and accordingly the agreement with the state was updated.
The main amendments to the Urban Renewal Agreement:
•
Sale and collaboration - Option to sell projects and / or promote them through collaboration with entrepreneurial companies.
Compensation mechanism -
for small projects (up to 150 outgoing housing units) - the full compensation, less expenses, will be paid to Amidar, while allocating the profits to public housing (50% for strengthening buildings in the periphery; 25% for maintaining public housing apartments; 25% for public housing projects) In large projects (over 150 outgoing housing units) - increasing the state's share in favor of the housing and housing sector, with an emphasis on the periphery, to 80% of the project's profit.
The agreement was signed in the presence of: Amidar Company Chairman, Yair Zilberstein, CEO of the Ministry of Construction and Housing, Aviad Friedman, Amidar CEO, Yigal Aharoni and VP of Properties and Companies, Nathaniel Lapidot.
Aviad Friedman, Director General of the Ministry of Construction and Housing:
"An important agreement was signed today for the tenants of public housing. The agreement allows projects to be realized through their sale or through collaborations with companies and developers in the private sector."
Promoting urban renewal in public housing will greatly contribute to the public housing system, renew the residents' living environment and upgrade their quality of life.
All this in parallel with the investment of the profits of the projects in public housing in the peripheral areas.
So this whole move means a contribution to public housing and the tenants. "
Chairman of Amidar, Yair Zilberstein:
"Changing the model of activity in the field of entrepreneurship and urban renewal will enable more efficient and correct implementation of the projects.
"This is a significant area of activity that promotes a number of goals, the most important of which is to improve the quality of life of public housing tenants with the improvement of apartments, improving living space and living environment, while creating resources for reinvestment in public housing in peripheral cities."
Nathaniel Lapidot, senior director of property and companies at the Ministry of Construction and Housing:
"The new agreement leverages Amidar's capabilities and strengths, while actually allowing it to sell the projects it is leading at their optimum point - which will bring the most profit to public housing."
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