Government budget approved: Cities expected to renew under state auspices

Following the approval of the government budget, the Governmental Authority for Urban Renewal announced Wednesday morning the expansion of framework agreements for urban renewal, presently implemented in 12 local authorities across Israel. The authority will allocate a budget of NIS 120 million ($32.4 m.) to facilitate agreements with seven additional local authorities: Kiryat Gat, Holon, Petah Tikva, Ramla, Or Yehuda, Yehud, and Ashkelon. 

Framework agreements are established between the governmental authority for urban renewal and local authorities possessing extensive planning stock but encountering challenges in issuing building permits due to insufficient infrastructure development funds. These agreements introduce a competitive mechanism among signatory local authorities, encouraging expedited building permit issuance within urban renewal complexes. As a local authority issues more permits, it secures a larger budget share from the authority’s dedicated fund, supporting infrastructure development for urban renewal projects within its jurisdiction.

The initial framework agreements were inked in August 2021 between the Governmental Authority for Urban Renewal and the cities of Jerusalem, Lod, Bat Yam, Kiryat Ono, Haifa, Netanya, Givatayim, Ramat Gan, Ashdod, Beit Shemesh, Hadera, and Kiryat Yam. Each authority establishes a steering committee co-chaired by the mayor and the director-general of the authority to oversee the progress of realizable complexes and expedite their realization. The incentives provided through these agreements have significantly boosted the number of housing units receiving building permits since their signing.

“The signing of the agreements will enable the renewal of thousands of housing units in these municipalities”

Construction and Housing Minister Yitzhak Goldknopf stated, "Increasing the budget and expanding the circle of cities with which we will sign the framework agreements for urban renewal is essential to the field of urban renewal, especially in light of the heightened needs of city residents during times of conflict. 

“The future of cities and old neighborhoods lies in urban renewal, and these agreements have already proven effective in removing a major barrier to project advancement by providing infrastructure development funds,” he said. “They will result in increased apartment supply, particularly in high-demand areas, benefiting both existing and incoming residents."

Elazar Bamberger, Director-General of the Governmental Authority for Urban Renewal, commented, "The scale and pace of building permit issuance in local authorities that have signed framework agreements with us have unequivocally demonstrated their importance and effectiveness. It's time to extend this initiative to another group of local authorities, which also harbor implementable plans. 

“The funding allocated to these authorities will incentivize building permit issuance, addressing the challenge of advancing quality regeneration plans due to inadequate budgets for necessary infrastructure and public facilities for both existing and new residents,” he said. “Signing these agreements will pave the way for the renewal of thousands of housing units in these cities."