urban renewal - TAMA 38 and evacuation of construction (lesson 8)

Question 1

What does the TAMA anchor?

Answer 1

TAMA anchors the goals of urban renewal.

Question 2

What is TAMA 38 / תמ”א 38? (NOP SEBAE)

Answer 2

TAMA 38 is the strengthening of existing buildings/demolition and rebuilding (officially: The National Outline Plan for Strengthening Existing Buildings Against Earthquakes)

Question 3

What is TAMA 35?

Answer 3

TMA 35 talks about the density of residences for the purpose of increasing the amount of open areas.

Question 4

What is TAMA 40?

Answer 4

TMA 40 talks about the utilization of the underground space (not yet implemented) and so on.

Question 5

What are the two essential routes for urban renewal?

Answer 5

Two essential and different routes for urban renewal are:
1. TMA 38 (strengthening of existing buildings/demolition and rebuilding)
2. Building evacuation (initiated by the authority or by a private entrepreneur).

Question 6

What is the authorities’ position on TAMA 38?

Answer 6

TMA 38 - The authorities don’t like this plan because:
1. It is exempt from VAT and fines and leaves the coffers empty.
2. TMA 38 is an addition to what is approved for that lot. That is, if you are allowed to build 100% of the lot area and you only built 80%, you can complete the 20% and add TMA 38 on it.

Question 7

What are the permitted actions under TAMA 38? (6 actions)

Answer 7

Permitted actions under TMA 38 -

1. Construction of an additional wing
2. Expansion of existing apartments (up to 25 square meters per apartment)
3. Obligation to build flats
4. Deviating from building lines
5. Adding floors (up to 2 typical floors)
6. Closing an encroached floor.

The building rights will be In relation to the existing building + additions approved by the TMA, according to the established multiplier.

Question 8

What are 5 conditions regarding TAMA 38? (ReDoNEInOP)

Answer 8

1. Reinforcement request can be refused if it has additional construction rights
2. Documents must be submitted with an application that align with TMA
3. Non-residential buildings and empty lots = different instructions
4. The amendment to the TMA includes an indemnification (beautification?) requirement
5. Obligation to inform the public (possibility of objection, appeal committee, etc.).

Question 9

What are the two routes for construction evacuation (פינוי בינוי), and who is each route financed by?

Answer 9

Construction evacuation - for construction evacuation there are two routes similar to TMA 38.

1. 1st route - Initiative financed by Local Authority; plan must be published to the public; requires 60% agreement on the procedure from the tenants before the work starts.
2. 2nd route - Initiative financed by the private entrepreneur; he will have to build at least 24 housing units in order to get approval for the procedure (entrepreneur does not have financial security in such a procedure since he may go bankrupt if encounters a reluctant tenant)

Question 10

What is the similarity between TAMA 38 and Construction evacuation (פינוי בינוי)?

Answer 10

What they have in common is economic incentives, so both routes are exempt from VAT and the improvement levy.

Question 11

What are the 5 differences between TAMA 38 and the Construction evacuation (פינוי בינוי)? - TA-Bu #Bu Ho Ma Tra

Answer 11

The difference between them is reflected in several parameters:

1. A new TABA (CE) versus a building permit (TAMA 38) - the procedure of Construction Evacuation requires the organization of the tenants, a new TABA, and receiving a detailed plan; the procedure of TAMA 38 only requires a building permit and is relatively quick.
2. Number of buildings - Construction Evacuation if for a larger amount of buildings; TAMA 38 usually about one or two buildings, which significantly affects the processing time
3. Housing during the procedure - in Construction Evacuation, the developer finances an alternative place of residence for the tenants for 3-5 years; in the procedure of TAMA 38, tenants remain living in the building
4. Maintenance fees - in Construction Evacuation, people suddenly move to live in high-rise buildings and have to pay maintenance fees that they are not used to. TMA 38 also has maintenance fees, but they are much lower.
5. Transaction - the tax authorities decided to deal with the Construction Evacuation like two transactions - once you sell the land and then you buy it. In TMA 38, the new apartments are sold to the developer, and in return the tenant receives construction services, and the portion that is due tomorrow he calculates with the tax authorities.

Question 12

What is construction evacuation / פינוי בינוי ? Who declares it, and for how long is it valid?

Answer 12

An urban area where it was decided to demolish the old residential houses, and build new residential buildings under them.

The Ministry of Construction and Housing may declare an area as a construction evacuation complex through a declaration order, valid for up to six years.

Question 13

What are tenant-price apartments / דירות מחיר למשתכן and who decided on this?

Answer 13

Apartments for long-term rent that have a reduced price control and the developer cannot sell them.

The HTML (Committee for Preferred Housing Complexes) decided on this plan to lower housing prices. Following the decision, approximately 20% of all apartments in a new residential building were designated as tenant-price apartments.

Question 14

What is HTML / הותמ”ל ?

Answer 14

The Committee for Preferred Housing Complexes