Calcalist, Amitay Gazit, 02.08.2021

The budget of the Ministry of Construction and Housing will increase by NIS 3 billion in the years 2023-2022, so that on average this is an increase of about NIS 1.5 billion for each budget year; According to the agreement reached between the Minister of Construction and Housing, Zeev Elkin , and the Minister of Finance, Avigdor Lieberman, the bulk of the addition will be used to purchase 1,700 new apartments for the public housing stock. The cost of this section is about NIS 2 billion, and it will make it possible to reduce the list of 4,446 eligible people currently waiting for an apartment.

This budget increase has several possible sources, including the Israel Land Authority's income from marketing land for construction, dividends from government companies and even the possibility of issuing bonds, a move that was already implemented in 2018 and allowed Amidar to purchase hundreds of apartments. Those waiting for a queue for a public apartment are entitled to assistance with rent during the waiting period, which is on average NIS 40,000 a year. Assuming that the purchase of the apartments will make it possible to save the payment of rent to 1,700 eligible people over a decade, the cost of purchasing the apartments should offset the cumulative cost of rent, which is about NIS 680 million.

Since 2014, when the Public Housing Law came into force, which allows tenants to purchase the apartment in which they live at a discount of tens of percent, the inventory of apartments has shrunk by about 10,000, because eligible people bought apartments but the state has so far purchased only about 2,800 apartments. 52,000 apartments and the list of those eligible is getting longer.

In addition to public housing the state will fund 60% of the budget required to build 3,000 sheltered housing units in the retirement home. In total, the state will pay NIS 540 million, at the same time the Jewish Agency will invest NIS 450 million for the benefit.

Also in the field of public housing, the Ministry of Construction will begin a pilot in which at least 200 eligible people will move into a long-term rented apartment. As part of the project, apartments for rent in four cities will be located, and they will be rented for a period of 10 years, with the management and maintenance of the apartments being carried out by a developer who will contact the Ministry of Construction and Housing.

In addition, the Urban Renewal Authority, which reports to the Ministry of Construction and Housing, will receive a budget of NIS 600 million intended for agreements with local authorities that will advance building permits at an accelerated pace in construction clearance projects. About half of that amount will come from funds that the Treasury owes to the Urban Renewal Fund and have not been transferred to it, due to a dispute with the Ministry of Construction and Housing.