There are two types of urban renewal projects –<br>1. TAMA 38 (National Outline Plan for Strengthening Existing Buildings Against Earthquakes). TAMA projects are also divided into two types – the strengthening and construction additions track (TAMA 38/1) and the demolition and construction track (TAMA 38/2).<br>2. Construction evacuation in accordance with the Construction Evacuation Law (Encouragement of Construction Evacuation Projects) 2006.<The main differences between the two types of projects are the size of the complex intended for renewal, and the planning process required for their implementation:<br>Evacuation and construction projects are intended for implementation in large complexes that include at least 24 units and an area of ​​no less than 4 dunams, compared to projects in accordance with TAMA 38 that are intended for implementation in a single building (building renewal).<br>From a planning perspective – in building renewal according to TAMA 38, the renewal is carried out at the level of the individual building and the approval of the project is within the authority of the local authority, in contrast to projects carried out according to the Construction and Evacuation Law, which usually require approval from the District Planning and Building Committee.<Therefore, evacuation-construction projects (unlike projects according to TAMA 38) allow for true and extensive renewal, even of an entire neighborhood, and enable the provision of a quality response to apartment owners in the complex for all public needs, education, employment, roads and infrastructure.

Changes will be possible in cases of planning constraints or following the requirements and guidelines of the competent planning authorities.<The agreement defined material changes as those that constitute a change in the floor on which the new apartment will be located, failure to attach parking spaces to the new apartment, reduction of the area of ​​the balconies, or reduction of the area of ​​the new owner’s apartment.<In the aforementioned cases, the owners will be entitled to financial compensation from the developer in the value of the damage caused to their new apartment in accordance with the determination of an appraiser, and up to the right to cancel the agreement in cases of material changes in accordance with the provisions of the evacuation and construction agreement.

Damari is an entrepreneurial company with an executive contracting arm with an unrestricted C5 classification for residential construction. In all of its projects, Damari is also the executive company. <In addition, the company has departments in all areas of construction, including planning, licensing, tenant relations, urban renewal, engineering, supervision, and more.

An “elderly person” according to the provisions of the Reconstruction Evacuation Law is an apartment owner who was 70 years of age or older and had lived in the apartment for at least two years on the date the Reconstruction Evacuation Agreement was signed by the first tenant in the same building in which the elderly person lives.<br>Understanding the difficulties and complexity of the eviction process for elderly apartment owners, provisions were established in the Construction and Eviction Law, according to which the developer must offer the elderly apartment owner at least one additional choice (beyond the option of accepting the consideration apartment) from the following alternatives, so that the apartment owner will choose whether to accept the consideration apartment or the alternative offered by the developer:<br>Moving to a nursing home until the date of vacating the apartment, including additional balance payments up to a value similar to the value of a replacement apartment.<br>Purchase of an alternative apartment that is worth similar to the value of the exchange apartment, which will be delivered to the elderly person until the date of vacating his apartment. Its location will be as close as possible to his apartment – ​​if he so requests. <br>Receipt of a sum of money equal to the value of the consideration apartment, for the purpose of purchasing a replacement apartment by the apartment owner in whole or in part, no later than the date of vacating his apartment.<br>Two apartments whose cumulative value is similar to the value of a replacement apartment.<br>A compensation apartment whose area is smaller than the area of ​​the compensation apartment that the apartment owner was supposed to receive as part of the eviction and construction transaction, plus balance payments, so that the value will be similar to the value of the compensation apartment.<For more information on the rights of the elderly in Pinuy-Binui projects: Special compensation for the elderly in Pinuy-Binui (Zchut) – Kol-Zchut (kolzchut.org.il)

A “refusing” tenant is someone who refuses to sign the construction eviction agreement due to unreasonable circumstances or reasons or extraneous considerations.<br>The law allows for dealing with reluctant tenants by taking legal action, after a qualified majority has been formed among the apartment owners in the building/complex who are interested in advancing the project and have signed the construction evacuation agreement with the developer. With the signing of a “qualified majority” is a majority of the apartment owners who own at least two-thirds (66%) of all the apartments in the complex, and also own at least 60% of the apartments in each condominium in the same complex and more than half of the common property in each condominium in the same cluster adjacent to their apartments;< br>In the context of taking legal proceedings against that recalcitrant tenant, the court is authorized to:< br>Determine that the refusing apartment owner is liable for damages to the other apartment owners in the complex who agree to the transaction.< br>Approve the execution of the transaction by appointing a lawyer or accountant (who is not an apartment owner in the complex) in accordance with the court’s instructions to enter into the agreement on behalf of the apartment owner.

Yes. In accordance with recent legislative updates, owners of multiple apartments in the same Pinui Binui complex are also entitled to an exemption for the Pinui Binui transaction, without limitation on the number of apartments they own in the Pinui Binui complex.

As a general rule, the exemption granted in a construction-elimination transaction is conditional on the fact that for each existing apartment, one new apartment will be received in exchange. That is, an apartment for an apartment. <In the event that two apartments are granted in exchange for one apartment owner, this will entail full taxation of the second apartment. Beyond the financial implications and the taxation aspects involved, receiving two apartments is subject to the developer’s consent, planning constraints, and the stock of apartments in the complex.

First, the rent determined by the appraiser will be in accordance with the rental prices that will be acceptable at the time of eviction – plus an additional 3%.<In the event that an apartment owner is unable to locate an alternative apartment at the rental rate determined by the appraiser, the developer will finance and employ a broker on his behalf to locate apartments in additional nearby neighborhoods (in the Herzliya/Ra’anana/Ramat Hasharon area) and the appraiser will update the rental rates determined, if necessary, up to 15% above the appraiser’s original determination – in a manner that will be suitable for renting an apartment in the apartments located by the broker on behalf of the developer or by the owners themselves.

The basic premise of Pinuy Binuy projects is that the apartment owners will not be charged any expenses in connection with the promotion and implementation of the project.< Therefore, the contract agreements with the owners’ advisors, such as an attorney and/or the inspector on their behalf, are formulated and signed by the representative/apartment owners themselves, and the developer is only the entity that finances the fees of the advisors on their behalf on behalf of the owners.< Of course, the apartment owners in the complex, through the representation elected by all the owners, are the ones who choose the law firm, the inspector and appraiser, and the other professionals who will accompany the owners, without the intervention of the developer and his representatives.< It should be emphasized that this model is in accordance with the guidelines and decisions of the Bar Association and the Ethics Committee of the Bar Association.

In projects that include apartments used for public housing (such as Amidar), the engagement with the developer in the evacuation-construction agreement regarding these apartments is carried out by Amidar itself, and the apartments for which consideration is provided in accordance with the agreement are given and returned to Amidar.<br>The placement of tenants in the apartments for which Amidar will receive the consideration or in other apartments owned by Amidar is done in accordance with the considerations and procedures of Amidar.<However, Amidar residents living in Amidar apartments before the date of eviction will be entitled to payment of rent, finding alternative housing, and transportation costs, as all apartment owners and in accordance with the provisions of the Binui eviction agreement.

property tax< br>Yes. First, in accordance with existing legislation, there is a discount or exemption for those eligible under the law from paying property taxes and an increase in property tax rates for new apartments at the completion of the project. <In addition to what is stipulated by law, during the rental period, the developer will participate in financing the differences in property tax and house committee payments in the alternative apartment for any difference beyond NIS 350 that will be applied to the owner for the costs of property tax and house committee in the rented apartment, compared to what is paid for them in the existing apartment.<br>Management/House Committee Fees<br>The developer will finance, for apartment owners who decide to live in the new apartment at the end of the project, the price increase that will apply to the payment of the housing committee/management fees in the new buildings.<The developer will finance for a period of up to 60 months from the date of delivery for those owners the full difference between the amount paid (if any) today in the existing building and the amount that will be paid in the new building.<Below is a link to the Every Right website regarding eligibility for exemption/discount on property tax payments in new apartments:<Property tax discount on a (new) Tmura apartment in the Pinuy and Binuy (Zchut) project – Kol-Zchut (kolzchut.org.il)<For additional information, guides, and clarification regarding the rights of owners in construction-elimination projects, below is a link to the website of the Government Authority for Urban Renewal:<https://www.gov.il/he/departments/government_authority_for_urban_renewal/govil-landing-page

Damari Regeneration is the leading urban renewal company in Israel, with over 35 years of experience, financial strength and a proven track record of successful projects across the country. We build all projects ourselves, committed to the highest quality construction in Israel. We offer a customized, tenant-focused approach that prioritizes your needs, ensuring a smooth and rewarding urban renewal experience.

The project will be carried out in an evacuation-reconstruction format that includes the demolition of existing buildings and the construction of new, modern buildings that are reinforced against earthquakes according to Israeli standards.

Each apartment owner will have a new apartment built in an area that is 18 square meters larger than their existing apartment. Subject to planning constraints.

Yes, each new apartment will have a sun terrace of approximately 10-12 square meters, in addition to the main apartment area.

The new apartments will feature premium technical specifications, which will not be less than the specifications of the developer’s apartments in the project (except for special apartments of the developer).

Each apartment will have one parking space attached (not in a parking facility).

Yes, a personal storage room of approximately 4-6 square meters will be built for each apartment, subject to planning constraints and approval by the planning authorities.

Each new apartment will have at least 2 air directions. The main air directions of the current apartment will be maintained, as much as possible, in the new apartment.

During the entire project implementation period, rental fees will be paid by Damari Renovation to all apartment owners in the project.

Damari Renovation will bear the costs of transporting the contents of the existing apartment to the replacement apartment and from the replacement apartment to the new apartment at the end of the project.