Seven years after the formulation of the standard 21, which is calculated appraiser Standard economic viability of the projects Pinoi-binoi - now wants the state to make its reform in order to allow more projects get under way. The Marker revealed that the Government Appraiser, sympathetic eyes, intends to introduce significant changes to standards, to be approved by the Board of Real Estate Appraisers in the coming months. Among the changes: removing the restriction on the maximum profit of entrepreneurs in projects Pinoi-binoi, currently limited to 25% standard 30%, creating uncertainty in the calculation of betterment levy and examination of the possibility to change the settings of the consideration for the apartments. Exposure to changes in the standard took place last week at a conference on real estate lawyers by the Ministry of deer again.
Standard No. 21, approved in 2012 in the presence of Real Estate Appraisers Board of the Ministry of Justice, was born to make sure of their economic projects Pinoi-binoi - while maintaining the balance of interests between the parties involved in projects of this type: the developers, planning authorities and landlords. The current version dictates the standard 21 homeowners receiving consideration: the big new apartment 25 sqm preceding their apartment building - including extra room, safe room, terrace and parking.
The standard defines entrepreneurs the usual entrepreneurial profit - 25% to 30% expected costs. If the resulting higher income, the assessor may demand higher compensation for homeowners - or who can require changes to the program itself will bring to the compatibility obvious entrepreneurial profit.
"Several years have passed standard certification and look at the situation - seems to be blowing up in," said Eini, also a member of the Council of Real Estate Appraisers, in conversation with The Marker. "The purpose of the standard is to ensure that there is 21 economic feasibility plan Pinoi-binoi while testing appraiser shall ensure a minimum income threshold allows the entrepreneur. Today, it seems that instead of planning lead - economic considerations became the leading consideration in promoting Evacuation".

 According to the eyes, removing the restriction of entrepreneurial profit is not necessarily seeking to generate higher profit developers, but to change the balance of power in the market. It is estimated that one of the main objectives is to increase the device changing economic viability of the projects Pinoi-binoi outside the area demand.

"Planning is the cause should lead to programs of urban renewal, and so long as this is the case - should not interest us some entrepreneur earns provided there is a minimum spacing that produces a feasibility study for the project. Economic projects should be examined in accordance with planning policy determined by local communities and provincial, as would be stationed in bar only minimal entrepreneurial profit - that would ensure viability, without going into the pocket entrepreneur ", but hers.

The minimum standard for the emerging entrepreneurial profit, according to my eyes, is about 20%. This minimum threshold several percentage points higher than the average blink currently require financing banks (15% -17%).

"Upper limit - a controversial intervention"

"Recognizing that it takes Amendment 21 is a statement in itself," says Haim rail link, Chairman of Real Estate Appraisers Association, adding that "This is a standard based on which projects urban renewal rise and fall." As part of a fundamental reversal awaited implications device on the market and from the desire to create a feasibility entrepreneur economic projects Pinoi-binoi - tested restriction removal entrepreneurial income threshold for the maximum in such projects.

Rail, also a member of the Council of Real Estate Appraisers, explains that "today says entrepreneur device must not earn too little, but not too much. If an entrepreneur earns more than 25% to 30%, it may be necessary to reduce the number of floors or apartments plan to earn the less. therefore, as the minimum threshold requirement is perceived as legitimate and important Lhitcnotm of projects, the upper limit is perceived as interference with controversial real estate industry. "

Changing the method of calculating the standard 21 entrepreneurial income is overwhelmingly supported by the professionals with whom we spoke, but for the other principles, opinions are divided - for example with regard to the proceeds received from landlords’ projects Pinoi-binoi. "With regard to changes in the Standard tenants, we examine two schools," said Eini. First, free market, determine the tenants at least get a new apartment for their apartment, but as long as the design is the carrier should be allowed to reach the developer and tenants, negotiations, including income distribution. The second school, which support most of assessors engaged in the field, is that we, as a regulator, should help define minimum receive tenants, as well as the maximum that could require the entrepreneur ", but hers.

According to government appraiser, the issue proceeds concerns about social tenants accompanying many urban renewal projects being built in areas populated by relatively low socio-economic cluster - where the state is required to ensure that the tenants will not be affected owners of urban renewal.

However, the reporter contingent consideration in advance for the apartments can sometimes challenge existing programs and be contrary to planning policy, which asks the state to being in the center of the momentum of urban renewal. Rail link: "When defining the changes that tenants actually raping the entrepreneur program dictated that he would not necessarily want it; instead dictate the developer to add a room, balcony and safe room for each apartment - should give the developer to create and market forces take their course, without the constraints of standard".

"Intolerable density"

Einat Ganon, vice president of Urban Renewal Authority government, said that "the consideration given to tenants, and developers have an impact on the economic viability of the projects Pinoi-binoi, but there are many variables that affect it - as project location, land value and characteristics of the program. Even the expected sales value and construction costs per square meter are not included in the standard, a significant impact on economic viability.

"The impact of the updated device on the market is only in the calculation, while the device updates itself would not cause economic feasibility of projects," emphasizes etiquette. She said re-definition offerings transformations is also significant challenges facing the realization of urban renewal projects: "For example, projects located in a very dense environment, so that a project be undertaken without reaching intolerable overcrowding - tenants will have to settle for a consideration of 12 square meters, for example, instead of 25 square meters as dictated by the existing standard. "

Raul knit president of the Association of Builders of the country, saying that "This project Pinoi-binoi everyone wins: the entrepreneur who enjoys construction projects in areas of demand, the tenant earns a new apartment and larger local authority-paid urban renewal without putting considered in the budget. Drawback to these projects is to increase the density. Therefore, limitation of entrepreneurial profit is necessary and essential - to enable the local authority to limit overcrowding in its territory. abolition of the restrictions on entrepreneurial income make it harder for authorities to approve projects of Pinoi-binoi ".

More telling knit that "if payment for apartment tenants will have an apartment, without the addition, or even for its brevity - there will be no project. It will kill Hfinoi- change. What tenant agrees to enter a project that will benefit him even one square meters - or even 12 square meters, it is obviously too little. "

"Synchronize the calculation of betterment levy"

Some of the changes in question and of efforts to streamline the existing bureaucracy and creating uncertainty in the market, explain my eyes and rail link that method of calculating the levies betterment projects Pinoi-binoi expected to change. "We are considering how to synchronize the calculation of betterment levy between the standard 21 and the local committee, which it spends the demand for payment", says rail link. "It is clear to us that there is now a real difficulty in terms of the project approved by Pinoi-binoi programs based on specific improvement tax - height, determined by the regional committee, may be completely different. This often impairs the feasibility of the project for the developer."

Eyes explains: "We are talking now about a calculation of the standard shall in principle only once close to the date of the deposit, and its update is required only if changes are planning substantial program. Today, on approving programs, many entrepreneurs seek exemption from betterment levy, claiming that on the basis the initial calculation, and will not be exempt from levy - they will not be economically viable project. In my opinion, if at the time of deposit program received consent for the betterment levy and from the desire to create economic uncertainty for entrepreneurs - not may be checked again whether there is or is not worthwhile. "