Renovation (TAMA 38): Residents' Rights During Building Redevelopment

Core Concept

The TAMA 38 program is a national plan for reinforcing residential buildings constructed before 1980 against earthquakes. For residents, it is an opportunity to upgrade their property and living conditions at no cost. The project is carried out by a developer (יזם), who, in exchange for the right to add new apartments to the building, performs a complete renovation or demolishes and rebuilds the structure.

Who is Eligible?

Eligibility for the project is granted to apartment owners in buildings that meet the program's criteria. The main conditions are:

You are the apartment owner (not a tenant) in a building selected for the project.
The building permit for your home was issued before January 1, 1980.
The majority of the building's residents consent to the project (consent from 66% to 80% of apartment owners is required, depending on the project type).

Who is NOT eligible:

Tenants of apartments (although their residency rights are protected during the construction period).
Owners of apartments in buildings constructed after 1980 (with rare exceptions).
Residents of buildings already designated as historical landmarks and not subject to reconstruction.

Your Rights

Your rights as an apartment owner are the primary subject of negotiations with the developer. They must be clearly stipulated in the contract. Typically, residents receive:

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Right / Benefit	Description
New/Upgraded Apartment	In exchange for your old apartment, you receive a fully renovated or new apartment in the newly constructed building.
Increased Area	The apartment is typically enlarged by up to 25 sq.m., including a protected room (MAMAD).
Balcony and Elevator	Addition of a balcony, installation of an elevator (if one was not present), and an upgrade of all common utilities.
Temporary Housing	The developer is obligated to provide you with equivalent rental housing for the entire construction period or pay a monetary equivalent.
Coverage of Expenses	The developer covers moving costs, the residents' legal fees, taxes, and other related expenses.
Bank Guarantees	A key right. You must receive a bank guarantee from the developer that covers the value of your new apartment.

Step-by-Step Guide

Initiation and Developer Selection. Typically, the developer approaches the residents. It is crucial to verify their reliability, experience, and financial stability.
Formation of a Residents' Committee (נציגות דיירים). Select a representative group to conduct negotiations on behalf of all owners.
**Lawyer Selection. This is the most critical step. Residents must hire their own independent lawyer specializing in TAMA 38. The developer pays for their services. Never use the developer's lawyer.
Negotiations and Contract Drafting. Your lawyer negotiates the project terms with the developer: the area of the new apartments, timelines, guarantees, and the amount of rental compensation.
Contract Signing. After all terms are agreed upon, the contract is signed by the majority of residents. This process can take from several months to a year.
Permit Acquisition. The developer submits documents to the municipality to obtain a building permit. This waiting period can last 1-3 years.
Relocation and Construction. Upon receiving the permit, you move into temporary housing. The construction phase typically takes 2-4 years.
Return to the New Apartment. After construction is completed and all approvals are obtained, you return to your new apartment.

Document Checklist

Your primary document is the contract with the developer. Ensure you have copies of all key papers.

Identification Card (Teudat Zehut).
Title Deed (נסח טאבו - Nesach Tabu).
Contract with the developer, signed by your lawyer.
Bank Guarantee (ערבות בנקאית) from the developer.
Temporary housing rental agreement (if applicable).

Pitfalls

Never sign anything without your lawyer. The initial documents offered by the developer may be disadvantageous to you.
Vet the developer. Ensure they have a track record of successfully completed TAMA 38 projects and the necessary financial resources. Ask to see previous projects.
The bank guarantee is your primary protection. It must cover the full value of the new apartment in case of the developer's bankruptcy. Do not enter into the project without this guarantee.
Majority consent. If some residents are opposed, it can delay or completely halt the project. The developer may sue "refusers" (דייר סרבן).
Timelines. Be prepared for the entire process, from the first meeting to receiving the keys, to take 5-8 years or more. Do not believe promises of quick timelines.

Contacts and Links

Information on TAMA 38 projects is local in nature. The primary contacts are your lawyer and the developer's representative.

Municipality: Information on the project's status can be verified at your city's engineering department.
The Governmental Authority for Urban Renewal (הרשות הממשלתית להתחדשות עירונית): General information about the program can be found here, but not about your specific project. Specific links and phone numbers should be obtained from your lawyer, as they change frequently.

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