Globes, Attorney Mira Bornstein, 20.05.2020

Recently, recommendations for legislative amendments in the area of urban renewal were published by the team for the removal of barriers to urban renewal. Some are very important, but some recommendations are missing.

Unification of Laws: It is best to unite one of the main laws dealing with urban renewal: the Government Renewal Law, the Evacuation and Construction Law (encouraging evacuation and construction projects) and the Urban Renewal Law (Agreements for organizing transactions).

These laws have different definitions that create contradictions and lack of clarity. For example, the PA law includes: a construction evacuation project, an urban renewal project, a construction evacuation construction project, an evacuation complex, an evacuation complex in a taxation track, a construction evacuation plan. The law encourages construction evacuation ventures include: a construction evacuation cluster or a cluster (which is a building for the construction of a construction evacuation complex), a construction evacuation compound (which is declared area), a construction evacuation deal (for construction in accordance with the construction evacuation plan), a construction evacuation plan (for construction in the construction evacuation complex) ).

A person from the locality (and sometimes a professional) who looks at these laws will find it difficult to understand the definitions, and anyone who reads a single law does not necessarily know that there are other laws dealing with the field and thus does not face the full picture.

Safe under the Sales Law (Dwellings): It is proposed to determine that the value of the bail apartment will be estimated by an appraiser near before the evacuation, and not in accordance with the accompanying bank's Report 0, which was carried out long before the evacuation, and denotes values ​​that do not match market prices. It is also proposed to address the taxation issue in the event of a bank guarantee being exercised.

Improvement levy: The proposed amendment does not resolve the uncertainty. Determining a 25% surcharge rate does not allow for a very significant figure in the economic calculation of the project, on the basis of which construction rights and proceeds will be offered to the owner. It is therefore proposed to set definite amounts for levy, similar to other development levies stipulated in municipal by-laws, so that both the planning authority and the developer can make real calculations and not the ones that collapse in the face of the final assessment.

Expiry Milestones: It is suggested not to interfere with unnecessary intervention in contract schedules. Everyone in the field knows that the contract schedules are very difficult to implement in the planning reality, and not necessarily due to the entrepreneur's incompetence. Temporary contract revocation provision does not necessarily serve the apartment owners because the parties generally agree to extend the dates, so flexibility and the possibility of announcing cancellation must be left and no cancellations made.

Dispute Resolution: It is proposed to set up a tribunal to resolve disputes between both parties to a signed contract and to defiant tenants and the like, to shorten the lengthy time involved in conducting legal proceedings.

Tenants Protected by Tenant Protection Law: Tenant Protection Law lists eviction grounds against protected tenants, including the desire of the leased owner to demolish the building to erect a new building and on condition that he has a building permit. This condition requires the developer to pay all fees and charges (including improvement), prior to taking any proceedings against the protected tenant. In urban renewal projects, it is proposed to settle for a committee decision to grant a permit, contingent on the payment of fees and levies.

When can a claim be lodged against a reluctant tenant: Section 2 of the Law on Encouraging Construction Evacuation Projects deals with the matter, but the terms for filing a claim are unclear. According to the section, a privileged majority of the apartment owners in the "construction evacuation group" who agreed to cut a construction evacuation deal is required, and therefore the definition of "construction evacuation group", which refers to the definition of "construction evacuation complex", refers to the area declared by the Renewal Authority Law. Only at the end of this concatenation can (perhaps) the reader understand that a declaration of the complex is required by the authority's law, which also refers to the Land Taxation Law.

It is therefore proposed to specify in the section itself clearly the conditions for filing a claim.

Legal representation: The proposed trust mechanism by which the entrepreneur will transfer the tenant's attorney's fees to the trustee and the latter will transfer to the attorney unnecessary and not applicable. One of the basic rules of evacuation of construction is that the developer pays the renters the rent, so it is unnecessary. In addition, the question is who will be the trustee? Who will pay his wages? What will happen if there is a dispute? And above all, there is an unnecessary injury to the lawyer, who has been working for many years, and when the long-awaited moment arrives and is entitled to payment, there is no additional and unnecessary hurdle.

Fees: The length of time that an attorney handles a construction evacuation project can take an average of 10 years or more, and his salary is conditional on the realization of the project, and even after many years of work, he will not receive any wages. "Owner's D" as derived from the sale of the developer's apartments.

It is an unnecessary and neglected intervention that violates the lawyer's right to receive proper wages for his long-term work, because it is not in any case what determines the amount of apartments the developer will build and their prices.

Mira Bornstein / Photo: PR