Eric Mirowski, globes.co.il.

Kiryat Bialik is one of the most prominent cities in the north when it comes to implementing TAMA 38 projects. However, alongside many successful projects, situations were created, in which the developer who signed an agreement with the landlords and received building permits from the local committee, encountered financial difficulties while executing the project and left it in the middle. In Kiryat Bialik, the municipality has 5 projects that were stopped in the middle: two on Dalia Street, one on Palmach Street, one on Weizman Street and one on the Tribes of Israel.

TAMA 38 project in Kiryat Bialik stuck after the entrepreneur went bankrupt / Photo: Kiryat Bialik Municipality spokeswoman

As a result, apartment owners are forced to continue living in a building under construction or, alternatively, to spend substantial amounts for rent, when they have no answer, address and expectation of completion.

In light of this, Mayor Dukorsky, in cooperation with the local committee for planning and construction, announced a decision to require the developers to present certificates indicating the company's financial strength or, alternatively, their bank or personal guarantee.

This decision, Dukorsky believes, will minimize the likelihood that the apartment owners who choose the developer themselves will remain without apartments or a lengthy construction process in case the developer goes bankrupt or disappears.

Dukorsky: "The Legislature did not consider the issue and in the TAMA 38 projects there is no escort by the bank to ensure the completion of the project or the financial guarantee for tenants. I believe that the municipality has a moral responsibility to the residents of the city, so we are exploring creative ways that will protect them from entrepreneurs who are looking for a small profit and disappear when the trouble arises. "