The Construction Ministry and Housing, the Finance Ministry, the Government Authority for Urban Renewal, and the Or Yehuda Municipality have signed a new framework agreement for urban renewal, aimed at accelerating evacuation-reconstruction processes in the city and enabling funding for infrastructure related to the projects.
This agreement is part of a second round involving six municipalities, with a total budget of approximately NIS 120M . The Or Yehuda Municipality will receive funding of NIS 20,000 to NIS 30,000 for each additional housing unit that receives a building permit, an amount designated for the construction of public institutions and infrastructure in response to population growth.
The agreement provides the municipality with budgetary certainty and, in return, obligates it to issue building permits within a short timeframe. According to data from the Authority, about 400 housing units were granted permits in the past year, and there is potential for another 2,720 units as part of approved plans. Future planning includes an additional 12,847 apartments, 6,500 of which will be in the southern neighborhoods.
According to Mayor Liat Shochat: “We are currently promoting about 20 projects that will change the face of the city. This is a move that will allow a high quality of life for long-time residents, along with upgrades to public institutions and infrastructure. I thank Construction Minister Yitzhak Goldknopf and the professional teams at the Authority and the Ministry.”
Hagai Toledano, Head of Community Relations at the Government Authority for Urban Renewal, added: “This is a model that has already proven itself in other cities. The funding, alongside the local authority meeting its deadlines, creates a significant impact on the ground.”
The agreement with Or Yehuda joins the first round of framework agreements signed in April 2022 with 12 local authorities, with a total scope of NIS 440M, under which permits were granted for more than 33,000 housing units across the country.