Likud members disinterested: Solutions for landlords and tenants in evacuated areas

The Finance Committee convened yesterday for an urgent discussion initiated by Knesset members Vladimir Beliak, Yanon Azoulayi, Yitzhak Krauzer, Michael Mordechai Biton, and Chava Eti Atiya about "Finding a solution for landlords and tenants of apartments in evacuated areas." This discussion follows the lapse of evacuation and encouragement grants, leaving uncertainties about further state support without legislative extension.

In the proposal for discussion, it was noted that one of the main issues faced by evacuees is the situation of tenants and apartment landlords. While business owners are entitled to compensation for business rent, residents renting apartments in the private market do not receive compensation. The state expects tenants to continue paying rent as they receive grants or full compensation for lost income. However, in practice, there are many contract violations by both tenants and landlords.

It was also noted that many tenants, whose incomes have been significantly damaged, are unable to pay rent. Many residents have been forced out, and their incomes have been reduced by 50%, making it difficult to cover rent costs. Additionally, many tenants whose leases ended during the fighting do not renew their leases, and sometimes the apartments are not vacated due to safety concerns. Even if tenants have moved out, there is no one to sign new contracts.

During the session, MK Naor Shiri (Yesh Atid) emphasized that, "The focus must be on finding solutions for northern residents," criticizing the low attendance of Likud members compared to past debates. MK Vladimir Beliak, also of Yesh Atid lamented the lack of legislative success in regulating the rental market, stressing the urgent need for actionable plans to address the crisis in the North.

These are the main points that emerged from the discussion:

How many Knesset members came from Likud?

Shiri: "The title of the discussion is finding a solution for landlords and tenants of apartments in evacuated areas, with an emphasis on the North. Look at the committee room. This is the attitude of the government representatives toward the residents of the North; there are no people, as if they said we will make a paste copy of what is happening in the North for the committee."

Beliak: "I remember the discussion that took place here about a year and a half ago about the financing of the prime minister's two houses; there were 13 MKs from the Likud here. I have been sitting here for 3 years, and I don't remember seeing 13 MKs from the Likud in any discussion. It's very sad, very miserable, and it's unbearable."

להלן סדרי עדיפויות:23.02.2023 - 13 חברי הכנסת מהליכוד מגיעים לדיון בוועדת הכספים על מימון מעונות ראש הממשלה נתניהו.1.07.2024 - 0 (אפס) חברי הכנסת מהליכוד מגיעים לדיון בוועדת הכספים על בעיות השוכרים והמשכירים ביישובים המפונים בצפון. pic.twitter.com/9BJhCPEIaN

— MK Vladimir Beliak ולדימיר בליאק️ (@VladimirBeliak) July 1, 2024

He then presented the issue: "This rental market is broken even in routine times. We tried to regulate it within the framework of the last budget arrangements law, but this also failed in a state of eviction. It affects both the renters and the landlords, and everyone gets hurt in their own way. I want us to come out with conclusions and an operative plan on how we solve this problem, because the North has been neglected by this government, and I think a solution can be found."

Efrat Oren, assistant head of legal advice at the Tax Authority, continued: "We thought that the state had given a response when, on the one hand, grants were given, and we continued to pay employers the wages, and we thought the circle was closed. We understand that this is a more complex and ongoing event with implications for the rental market, and we are in discussions with the Treasury."

Assaf Wexler, from the Budget Division at the Finance Ministry, said, "There is an event here that is very complex from a legal, economic, and financial point of view, involving areas where the evacuees arrive and everything related to that. In the end, the state provided the initial solution for the hotels, and the state does consider it appropriate that those who receive compensation from the state will pay the person from whom they rent and will continue to reach a settlement with them. 

“We understand that there are other complex issues here, and we are looking into it,” he said. “We have held several meetings within the government to examine all the questions and consequences of these matters. I cannot talk about them yet, but these are discussions that happen all the time."

"My parents, who are 80 years old, rely on this as an additional income for their pension," he shared.

Ofir Yehezkely, MP and Deputy Mayor of Kiryat Shmona, said, "I want to give you brief examples of the situation in Kiryat Shmona. The first example is my parents, who are 80 years old, immigrated in 1952, slept in Mebara, and accumulated NIS 1. Over the years, they bought a small apartment in Kiryat Shmona, which they rent every month for NIS 2,800, which is another income for their pension. What is happening today is that the tenant's lease has expired and he does not extend it, so their income has automatically been affected. 

Yehezkely shared a second example: “A single mother with children is in a hotel and is not entitled to eviction grants. Her salary was cut in half because most of the residents of Kiryat Shmona were taken out of the state of emergency, and as soon as you are in a state of emergency, your salary is hit by at least 50%. Now all the stories told to employers are you will pay and get back.

“There is a gap between what is happening above and what is happening on the ground,” he said. “The same mother whose salary was affected, the State of Israel says she should continue to pay the same rent. Anyone who is considered a business can go to the Tax Authority, to the compensation fund, and request reimbursement for loss of income. So even in this case, [the authorities should] recognize it as a loss of income, allow them to submit a request for compensation, and check them, but for those who are really injured, allow them to receive the compensation."

Sheli Dedia, an evacuee from the Shlomi settlement in the North, said: "We have been evacuated to the Dan Hotel in Jerusalem for about nine months. We have a significant problem with a lot of parents who are single parents, people who have paid rent and actually do not live in the house, when the landlord requires them to pay rent. I speak on behalf of the community. This is an issue from which both the lessor and the lessee lose. Many people have contacted me that they don't know what to do; they pay both the lessee and are in a hotel and have no money."

Former MK Nira Shefak, a resident of Kfar Gaza, said: "We have many problems with the issue of evacuees and displaced persons. My notebook is full of public appeals that are not answered. They set a date by which we have to pay rent every time, but no landlords are willing to rent in this situation. Summer is a hot season in the apartment market. Landlords say they are ready to rent for six months or a year, and they told us very clearly that if there are no extensions, we will bear the burden. 

“We are the evacuees from the red settlements,” Shefak said. “We are being evacuated to Ruha, and the date is about November, and no one is willing to rent until November because it is a dead season and we receive less money. In this season, some of us rent for a year knowing that we will join the sponge. We arrive in January and March and no one has given us a solution to this matter. No one has come to the tenant who is asking for NIS 7,000 for an apartment and told him to give him NIS 13,000 only if he extends the contract,” she said.

“Rent in the Center costs a lot of money. When the rent paid to evacuees is 200 NIS per person per day, you will find an apartment for 6,000 NIS in Tel Aviv? There is none. And who are they hurting? The weak populations. I want to know how to arrange this mechanism for the evacuees."

MK Beliak summarized the meeting: "This discussion is important and it is an issue that affects quite a few people, their lives, and their livelihoods. I am very sorry that the members of the coalition chose to be absent from this discussion. 

“I will ask the chairman of the committee to hold another discussion on this issue within two weeks, and I am asking the government ministries to come up with solutions. I would be happy if in two weeks we could place on the Knesset table not only the minutes of the discussion but also the solution we reached."