The Urban Renewal Guide

Urban renewal is a process aimed at revitalizing urban areas by promoting growth and development. It involves upgrading and enhancing existing structures, either by reinforcing and densifying them or by demolishing old buildings and replacing them with new ones. This process is typically initiated by private or public entities and requires agreement from existing property owners, as they hold the land rights necessary for project realization. 

1. Demolition and reconstruction: In this scenario, the current structure is demolished to make way for a new, contemporary building through one of two potential processes:

• Evacuation-construction (Pinui-Binui) -Demolition and reconstruction of the existing building: This comprehensive neighborhood revitalization plan encompasses multiple buildings, public spaces, commercial premises, green areas, and transportation infrastructure. It necessitates a two-thirds majority agreement from all tenants and typically spans 8 to 15 years for planning and execution.
• Construction-evacuation-construction (Binui-Pinui- Binui) - Like evacuation-construction, this approach involves constructing new buildings on available land for existing tenants before progressing to the demolition and construction of new structures for new occupants.

2. Building reinforcement against earthquakes and expansions: This strategy enables various engineering interventions to fortify the structure, add new floors atop existing buildings, and extend current apartments, all at zero expense to tenants.

     Two primary pathways are available:

• NOP 38/1: This plan, aimed at thickening and strengthening buildings, falls under the jurisdiction of the local planning and construction committee. It bypasses the need for an IBA (Israel Building Act) approval, often resulting in quicker implementation. The project requires approval from 66% of property owners and typically leads to a substantial increase in apartment values.

• NOP 38/2 - Demolition and reconstruction: In this scenario, the local committee holds the authority to approve the plan. However, as it involves a more intricate process of demolishing and rebuilding, the requisite majority is 80% of property owners. Anticipated completion time spans 3-5 years. Property owners in this case receive a new apartment with MMD (Maximum Maintenance Defect), inclusive of environmental enhancements to communal areas, thereby experiencing a substantial rise in apartment value.

The Urban Building Scheme, known as TABA, is a legally binding document designed to outline and regulate land use, designations, and building rights within a specific area. It comprises two key components:

• Graphic Part: This section includes a detailed map of the area divided into lots, land designations for each lot, infrastructure such as roads, and specifications for building lines.
  
  
• Regulations: These define the land designations (e.g., residential, parks, public buildings), construction allowances, building nature, and, if needed, architectural uniformity requirements.

The disparities between these two types of projects become apparent in their respective stages of execution:

1. During the pre-organization stage, - NOP 38 projects require organizing and obtaining agreement from apartment owners within a single building. Conversely, in building evacuation projects like "Pinui-Binui," this stage involves a longer and more complex process as it entails organizing and securing agreement among apartment owners across multiple buildings.

2. The planning phase and obtaining approvals -differ between TAMA 38 and construction evacuation (Pinui-Binui) projects. In NOP 38, the planning process is relatively short as building permits are already derived from the national outline plan. Conversely, construction evacuation projects require a longer, more complex planning procedure, including approval of a detailed plan encompassing broader planning and environmental aspects affecting the entire neighborhood. Even after detailed plan approval, an additional procedure is needed for the building permit.

3. During project implementation - in NOP 38 projects for strengthening and thickening, tenants typically remain in their apartments during construction. However, in NOP 38 projects involving demolition and rebuilding, and construction evacuation projects, tenants relocate to rented accommodation until construction is completed.

Buildings eligible for the earthquake strengthening program are those that obtained a building permit before 1980. These buildings can undergo strengthening procedures and receive additional building rights (MMD) for apartments of at least 12 square meters, provided there are at least four apartments in the building. NOP 38 projects encompass building upgrades, façade renovations, and improvements to common areas. To assess the feasibility of your building, consulting with a qualified engineer is essential to evaluate the building's durability and determine suitable strengthening methods. Additionally, municipal policies should be reviewed with the local authority to identify areas designated for urban renewal under the structural strengthening track.

Urban renewal projects not only enhance your property but also elevate your overall quality of life while providing security. By participating in urban renewal, you exchange your old apartment for a new or renovated one, fortified against earthquakes and equipped with additional building rights (MMD), essential in today's security landscape. Depending on the chosen route, your apartment may be expanded, with added spaces like balconies, parking, and storage areas. Furthermore, urban renewal revitalizes old neighborhoods, enhancing their aesthetics and functionality by introducing public and green spaces, community facilities, and more. These improvements often spark a sense of rejuvenation among residents, fostering a vibrant and thriving community.

Ashtrom Residence understands that building evacuation projects are intricate and time-consuming endeavors. That's why we're dedicated to providing you with comprehensive professional assistance at every stage of the project:

• Presentation of the project by the developer
  
  
• Facilitating agreement on the transaction's framework between tenants and the developer
  
  
• Appointment of tenants' representation and legal counsel to advocate on their behalf
  
  
• Analysis and execution of a construction evacuation agreement, including offering collateral to residents
  
  
• Preparation of a new Urban city scheme (TABA) for additional rights
  
  
• Construction and approval before the local and district committee
  
  
• Completion of agreement signing by all tenants
  
  
• Preparation of a plan to obtain a building permit from the local committee
  
  
• Signing bank documents and receiving guarantees for the value of the new apartment
  
  
• Evacuation of tenants and relocation to alternative housing until construction completion - including rent and transportation expenses
  
  
• Demolition of existing buildings and construction of new residential structures to high standards, complying with the latest regulations.