The Jerusalem Post annual conference: 7 Israeli ministers will meet you there!
Knesset Interior Committee approves fast-track housing bill
By
July 24, 2014 17:40
World Bank ranks Israel 140th out of 189 countries in building and construction bureaucracy index; new measure aims to bring down overinflated price of housing.
As well as their regular classes, the stables now offer equestrian Tai Chi and Qi Gong.

Gilo 370. (photo credit:reuters)

The Knesset Interior Committee approved a bill on Wednesday evening to promote housing projects in priority areas through a new fast-track committee.

The bill would create a Committee for the Preferred Housing Program, called the “vatmal” in its Hebrew abbreviation, which over the course of four years would be able to approve programs for tens of thousands of housing units, and is intended to reduce the cumbersome bureaucracy of the building process.



Be the first to know - Join our Facebook page.


The committee itself will handle the procedural hurdles for housing projects that include more than 750 units designated by the Housing Cabinet as “national housing projects.”

Any such projects will have to designate 30% of the units for long-term rental, half of which will be under price supervision and half of which will sold at market prices.

While the bill aims to quickly reduce the cumbersome bureaucracy associated with housing for big projects, it will not help smaller projects around the country. The World Bank ranks Israel 140th out of 189 countries in its building and construction bureaucracy index.

The vatmal is one of a handful of measures the government is pursuing to bring down the overinflated price of housing, which has nearly doubled in the past seven years. One such initiative involves a series of “umbrella agreements” in towns around the country, which would also fast-track building by providing government funds for necessary infrastructure up front, and reducing the burden on local authorities.

Another measure, “price targeting,” involves adding a requirement for contractors bidding on land to compete on the basis of lowering final sale prices.

Finally, Finance Minister Yair Lapid’s plan for exempting some young couples buying their first homes from value-added tax – a plan economists have derided as costly, populist and ineffective – is expected to go into effect in September.
Relevant to your professional network? Please share on Linkedin

Tags:
  • Knesset
  • Yair Lapid
  • business
  • israel housing prices
  • Prev Article
    Bill increasing jail time for murderers passes early vote
    Israel Prison
    The Negev desert may soon be traversed by a rail line to Eilat
    Jerusalem deputy mayor arranging for capital residents to buy southern products
    Next Article
    Share this article via
    from around the web
    Related Content
    Riot
    August 31, 2014
    Rioting resumes throughout east Jerusalem Saturday night

    By DANIEL K. EISENBUD

    Top Stories
    Israel Weather
    • 7 - 20
      Beer Sheva
      8 - 19
      Tel Aviv - Yafo
    • 10 - 17
      Jerusalem
      10 - 18
      Haifa
    • 12 - 25
      Elat
      7 - 23
      Tiberias