Minister of Construction and Housing Yitzhak Goldknopf: "Reducing the organizers' salary is an important move for the benefit of apartment owners in urban renewal projects"
The CEO of the Governmental Authority for Urban Renewal, Mr. Elazar Bamberger, addressed the city engineers and managers of the urban renewal administrations across the country in a letter presenting for the first time reasonable salary costs for organizers working in urban renewal projects.
Minister of Construction and Housing, Yitzhak Goldknopf:
We led the decision of the government authority for urban renewal in order to curb the organizers' salary and prevent a situation of unreasonable costs for the apartment owners. The work done on the subject is the beginning of an important path in this issue, as well as the presentation of the regulations in the Knesset Interior Committee in the near future. We at the Ministry of Construction and Housing, together with the Governmental Authority for Urban Renewal will continue to promote urban renewal projects all over the country and will continue to promote decisions that favor the apartment owners.
The activities of the organizers can help the apartment owners in organizing the renewal process and contribute a lot to its promotion, but nevertheless, in the current situation, where there are no rates defined by law or government procedures for this matter, the apartment owners as well as the entrepreneurs are faced with a reality in which organizers demand, in some cases, a salary that constitutes a significant share from the project's revenues, in a way that harms its ability to be implemented, as well as the expected return for the apartment owners from it.
The purpose of the appeal is to inform the apartment owners, through the municipal administrations that currently operate on behalf of the government authority in about 50 local authorities in Israel, of the reasonable costs of these services, as well as to integrate these costs into the calculations that form the basis for the approval of the plans in the planning institution.
Elazar Bamberger, CEO of the Governmental Authority for Urban Renewal:
Publishing the rates to organizers is an important step to prevent unreasonable expenses that are sometimes involved in these services, and that burden the promotion of urban renewal projects. The project belongs exclusively to the apartment owners, and they have the power to prevent the payment of unreasonable wages to any party involved in the project. The success of the move will lead to the expansion of the urban renewal activity in Israel, and to the increase of the expected returns from it for the apartment owners.
The rates regarding the organizers' salary refer to the degree of involvement and responsibility of the organizers in the projects
which they promote and depending on the size of the promoted projects:
- In projects that the organizer accompanies until the entrepreneur is selected, the salary range will be NIS 5,000-12,000
- When the organizer's services also include a competitive procedure for selecting the developer in the tender, the salary range will be
8,000-15,000 NIS - When the organizer accompanies the tenants until they receive the new apartment, the salary range will be -16,000
24,000 - As long as the organizer works to promote the planning and accompanies the tenants until they receive the new apartment, a range
The salary will be NIS 25,000-30,000, plus planning costs
The recommended rates are in relation to projects of the size of about 80 existing housing units, where the Authority's recommendation is to decrease or increase the rates according to the amount of housing units. In a project where there are more than
80 housing units the rate per apartment will decrease and in a project where there are less than 80 housing units the rate per apartment will increase.
Soon, and as a complement to this move, the Governmental Authority for Urban Renewal will bring it to the Interior Committee for approval
In the Knesset regulations that will oblige every entrepreneur to present to the apartment owners the salary costs he has committed to bear for
Organizers, as well as for other service providers to the apartment owners in the project, before signing the agreements
Evacuation-construction. In addition, the authority is working to ensure that the tax benefits for entrepreneurs in urban renewal are calculated accordingly
to the said rates.
How the developer's payment to the organizers affects the apartment owners in the project
Agree with a loyal reader, this is the situation!
The Honorable Minister of Construction and Housing continues to support the worst and worst construction plan ever built in the country - TMA 38, which he still calls "urban renewal". There is no connection between this destructive and dangerous plan and real urban renewal that cares for the public's well-being with diverse public institutions and environmental development.
The entire TMA 38 is based on false statements by the local committee's engineers, includes flawed calculations regarding the earthquake resistance of the existing buildings, is based on faulty laboratory reports, and above all, this demolition plan is promoted falsely and in violation of the law by the municipal legal counsel.