The new affordable housing program gives priority to locals


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Today, the Israeli Land Council, which manages Israeli state administration policy, approved a plan proposed by Construction and Housing Minister Zeev Elkin called “Target Price 2.1”. The main goal of the plan is that land for housing at a reduced price will be sold only in cities where the average price per meter of housing is up to 20,000 NIS and in cities with a socio-economic profile of four or lower according to the Central Bureau of Statistics.

The new method proposed by the Ministry of Construction and Housing is the determination of the price per built meter, which will be stated in the tender documentation. Based on the determined price, a discount of 20% of the apartment price is realized, up to 300,000 NIS. Contractors participating in the tender will compete for the highest price of land.

Unlike previous programs, there will be no annual quota for the sale of housing units. The number of housing units designated for those registered with the Ministry of Construction and Housing with the right to subsidized housing (according to the same definitions as in the Customer Price Program) will be 60% of apartments built in areas of high demand. In areas where the value of the country’s dunes (a quarter of a hectare) is lower than 100,000 NIS, in areas of national priority and in minority settlements, the share of housing units designated for those entitled to state-subsidized housing will be up to 65%. In addition, one in every 30 units is intended for people with disabilities who are confined in their home.

The new method gives priority to the allocation of “locals”, ie all those who have lived in the previous three years or in four of the previous ten years under the jurisdiction of the local government in which the project will be built: 25% at national level, 35% in national priority area B, and 50% in areas with national priority A. In minority settlements of up to 30,000 inhabitants, 50% of the housing units built will be allocated to local residents. The Israeli state administration will have the power to increase these percentages to as much as 75%. In the Haifa area and in the north, the allocation for the local population will be a fixed 75%. In settlements with less than 10,000 inhabitants, it will be possible to obtain a 100% allocation to local residents.

In addition, those who are eligible for state-subsidized housing and who buy homes in areas with national priority (ie areas declared by the Israeli government to do so and where various incentives are available to attract residents and businesses) will receive a fixed grant of 40,000 NIS.

“At an unprecedented rate, we have submitted an affordable housing program for approval, after learning lessons from previous experience and removing regulatory barriers to land sales. The new target pricing plan focuses resources on people who will benefit from a significant first home, for people with disabilities and giving higher percentages to locals, ”Elkin said.

Published by Globes, business news in Israel – en.globes.co.il – September 9, 2021

© Copyright Globes Itonut (1983) Ltd. 2021


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