Dov Cohen , calcalist.co.il.

Even if the area of ​​urban renewal still has some inherent uncertainty, it is now possible for those active in the field to enjoy at least certainty regarding the validity of TAMA 38 (the national outline plan for the protection and strengthening of buildings), following the decision issued earlier this week by the Ministry of Housing and Construction. It will be extended for three years, until October 2022, after which a new plan will probably be implemented, which is apparently quite different.

At a meeting in the office of Minister Yifat Shasha-Biton, all senior planning bodies participated, and agreed on the principles of the future outline to replace the GDPR, which will include far-reaching changes in relation to the original plan. For example, a legislative amendment will be examined to allow partial improvement of the levy to the authorities. Contrary to the current situation in which the promoter of the Tama 38 promoter receives automatic exemption. The rationale behind the move is to allow the local authority to receive a partial improvement levy also from the implementation of the 38-point and / or compound TAMA, and not only in evacuation-construction programs.

It will also examine a transition from a national outline plan (TAMA) to a city building plan (BCA) - which will also increase the power of local authorities to include urban renewal policies in their territory, and better address the need to upgrade infrastructure and public space. .

In addition, it has been agreed that a legislative amendment will be promoted regarding the establishment of a dedicated fund to strengthen buildings against peripheral earthquakes. The funding for the fund will also come, among other things, through urban renewal projects to be implemented in the center of the country and in accordance with pre-defined criteria under the legislation.

For TEMA projects that have already been promoted in planning institutions, it has been determined that these will not be affected, and subsequent transitional provisions will be set defining the time period for submitting new applications. In the coming weeks, the National Council's subcommittee (the Holocaust) is expected to convene and discuss the outline details as well as hear all the relevant parties on the subject.

There is certainty, less time

The move was widely agreed by all government agencies, including the Planning Administration, the Ministry of Finance, the Ministry of Construction and Housing, the Headquarters of the Housing, the Ministry of Justice and the Government for Urban Renewal. This is a real news since around the necessity of the GDPR and the extension of its validity, there has been a fierce debate between the parties operating in the urban renewal over the last period.

Among the developers in the field of urban renewal, the Ministry of Housing announced with mixed feelings: "The decision to extend the program is a necessary and necessary decision, because without a planning uncertainty that means a clear and valid plan, entrepreneurs simply cannot operate in the market," says Eli Ben Shalom, co-CEO of the company Ben Shalom , who initiates and executes many TAMA 38 projects in the cities of Gush Dan and especially Tel Aviv. However, he said, "Until we know what the plan will replace the GDPR and as the alternative plan is not institutionalized and will not be published in the near future, the level of certainty required for proper operation in the urban renewal market will not be accepted.

"Ben Sholom’s extensive experience in TAMA 38 projects taught us that this is a very slow-moving industry. Three years is almost nothing in the real estate world at all, and in the real estate world in particular. Therefore, in our understanding, anyone who does not progress at a fast pace and does not reach an agreement within a year from now - will find himself out of the game. In projects where we have reached a high maturity level, we are working to complete the negotiation process as quickly as possible, so that we can get started and enjoy the relief provided by the GDPR. "

Eli Ben Shalom. Work quickly to enjoy the relief provided by the GDP Photo: Yona Shalay

An enriching program

In Ben Shalom, the understanding is being given to the intention of allowing local authorities to impose promotional levies on entrepreneurs in future projects. According to Uri Tzur, a real estate entrepreneur and VP of Ben Shalom, "this is a legitimate and correct demand from the local authorities. The need for broad thinking and" integrated planning "is important, and such unscheduled action creates many problems, as we saw in Ramat Gan, for example.

"In a multi-year perspective, it can be said with confidence that in the eyes of the local authorities, the TAMA 38 suffers from inherent imbalances. The notion that TAMA 38 does not express and respond to urban needs, while enabling an expeditious path to enrichment of tenants, is reflected in a long line of decisions that have been examined or already implemented by the authorities and aimed at gnawing on the value of the apartment owners. "The plan will be converted from a national plan to a city building plan, and the authorities will levy significant improvements, so that they can finance the implementation of the comprehensive planning. This is also true of the appropriation of land for different public needs."

In summary, what would you recommend to property owners today - run to the municipality and get approved for projects or wait for the alternative plan?

"Sometimes we see TAMA agreements stuck because of widespread preoccupation with relatively minor and minor components. In my opinion, the owners and developers would do well if they looked at the broader picture and with the understanding that on the day after TAMA 38, the rules of the game would change unknowingly. It is important to complete the institutionalization of the agreements and to leave quickly to enjoy the conditions of the existing plan, as long as possible. "

Ben Shalom has been leading and operating in the urban renewal world since its inception and will soon mark 50 years of activity. The contractor-entrepreneurial company specializes in construction in Gush Dan, focusing on the demand areas in Tel Aviv. "Looking at the real estate market in Gush Dan, we recognize that prime housing supply is based on urban renewal," says Tzur. "Moving to a new program can create stagnation in this short-term market, reducing housing supply in demand areas.”.

Uri Tzur."The day after the GDPR, the rules will change forever"

From mental oversight to a planning casualty

Minister of Housing and Construction, Yifat Shasha-Biton, said after the decision was issued that "TAMA 38 failed to fulfill its purpose in the places designated for it, was not realized in cities where there was a high risk of earthquakes and in some of the cities where it became a planning hazard.Therefore, it was decided to discontinue it within three years, during which a new and more relevant plan will be approved, enshrined in legislation and dealing with aspects of planning, regulation, addressing public needs, budgeting for its implementation in peripheral areas that are not economically viable and facilitating bureaucratic processes. "

Planning Director General Dalit Silver also commented: "The issue of urban renewal is the central task of the Planning Administration and so is the State of Israel's strategic plan for years to come. TAMA 38 is inconsistent with this goal and does not even bother with it. A proper planning should be taken into account, which takes into account the overall public interest, while revitalizing the urban fabric and revitalizing the public space and infrastructure - not just in a narrow and narrow view. Remained unprotected against earthquakes in sensitive areas such as Tiberias and Beit Shean. "