The government is issuing a new housing program, this time aimed at the haredi (ultra-Orthodox) sector. The government is planning to market 15,000 housing units in haredi communities or on sites with a haredi character over the next three years.
Minister of Construction and Housing Yoav Galant is expected to make this proposal at the upcoming housing cabinet meeting scheduled for next week. The Ministry of Construction and Housing formulated the plan in cooperation with the Haredi Institute for Public Affairs. The haredi population is known to suffer from housing problems. Construction of a new haredi city was previously discussed, with Harish being selected as the site and the plan being designed with special characteristics for the target population. Since the tenders were open to the general public, however, and due to the fact that large buyers group in the haredi sector coordinated their bids in the tender, almost all the bids submitted were disqualified, and the city was eventually not founded as a haredi community.
As of now, there are other plans, such as expansion of the city of Elad, building a city in southern Israel near Arad, and other possibilities. Once the housing cabinet has approved the proposal, a special team will be required for the task to determine where these 15,000 housing units will be marketed.
The main question in the plan is how the land will be marketed, and whether there are valid plans ready for marketing. At the same time, no decision has yet been taken about whether the land will be marketed in the framework of the buyer fixed price plan. Another question is whether the marketing of 15,000 housing units to the haredi sector, unquestionably an important measure, given the distress in this sector, will detract from efforts to increase the supply of land marketed to the general public.
In the proposal being presented to the housing cabinet, three possible solutions are being offered for increasing the supply of housing in the haredi sector: expanding haredi areas and making them denser, building haredi neighborhoods in heterogeneous cities, and building haredi cities or dense haredi neighborhoods next to existing cities. The Ministry of Construction and Housing intends to promote all of these possibilities simultaneously in an effort to market the land as soon as possible.
In order to decide where the plots for these thousands of housing units will be marketed, the decision will task Ministry of Construction and Housing director general Eshel Armoni with selecting a work team to bring recommendations to the housing cabinet about building cities, the special characteristics of construction for haredim, and locating cities in which haredi neighborhoods will be built.
In the framework of the decision, it is also being proposed to allow a marketing tender tailored for the way of life of the haredi population, something that has never been done, while including restrictions on the height of buildings (because haredim do not use elevators on Shabbat), extensive public transportation infrastructure, a large number of public institutions, etc. This decision also requires approval from the Attorney General, due to the binding principle of equality in marketing land by the state. At present, land cannot be marketed for a specific population, and if the government does so, it can expect to face lawsuits and court petitions.
One possible solution to this problem is marketing land to the general public in a way that will clearly signal to the market the government's intention to designate the sites in question for the haredi population, among other things due to its location or the character of the planning. In any case, Israel Land Authority restrictions on marketing land will probably bar the advertising of tenders limited to a specific population group.
"We have devised a proper long-term plan for the haredi sector," Galant said. "The decision we are about to pass concerns a large sector suffering severe housing distress. It is our responsibility to take care of all sectors in Israel, and to adapt housing solutions to the needs of the various groups. We have formulated measures in the plan for the haredi sector for the next 20 years, in which the government will have to build 200,000 housing units for the sector. Up until now, the response to these needs has been partial and sporadic. In the current decision, we are anchoring government policy for the long term a solution for a sector with special housing characteristics."
Haredi Institute for Public Affairs chairman Eli Paley, who helped prepare the plan, said, "The proposed decision marks the beginning of implementation of a long-term strategic plan. It is the first time that the state is providing a solution from a broad perspective for the special characteristics of haredi society. The proposal will pave the way for full cooperation based on trust between the government and the haredi sector."
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016