What building renewal is
"Building renewal" is the name commonly used today for a project at the level of the building: strengthening the existing building and adding apartments, or demolishing and rebuilding it, without preparing a plan for the whole neighbourhood. Until recently most of these projects were carried out under TAMA 38, which is no longer open to new applications. Since it expired, the main track is the Shaked plan.
The Shaked plan, also called the Shaked alternative, was approved by the Knesset in June 2022 as Amendment 139 to the Planning and Building Law. The amendment authorises the local planning committee to approve a "plan for the resilience of buildings against earthquakes", which sets the additional building rights for the building Planning and Building Law, section 70A.
| What happens to the building | Strengthening and addition, or demolition and reconstruction |
|---|---|
| Planning basis | A plan approved by the local planning committee, according to the municipality's policy |
| Scope | A single building, or several adjacent plots |
| Betterment levy | One quarter of the betterment, with the option of a reduction |
| Expiry date | None. The track is set in law |
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
Which buildings are suitable
The track is intended for old residential buildings that were not built to the earthquake standard. Under the conditions that were set:
- The building is used for housing, and at least 70% of its built area is lawful residential use.
- The building permit was issued before 1 January 1980. A building that received a permit in 1980-1984 is suitable only if an engineer has determined that it was not built to the standard.
- The building has at least two floors and at least four apartments.
Even when the building meets the conditions, the local planning committee decides whether to approve and to what extent. Many cities have published building renewal policies, and some of them have local plans that restrict the track in certain areas. Checking the municipality's policy is the first step.
How many building rights you can receive
The law sets ceilings. The actual rights are set in the plan for each building, and are usually lower than the ceiling:
| Track | Ceiling on the addition, relative to the existing built area |
|---|---|
| Demolition and reconstruction | Up to 400% |
| Demolition and construction on three or more adjacent plots | Up to 500% |
| Strengthening and addition | Up to 200% |
| An area designated by order of the Minister of the Interior | Up to 450%, 500% or 550% |
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
The area of the safe room (mamad) is included in the ceiling on the addition, and does not come on top of it. Some of the rights may be allocated to public areas, and the committee may decide that approval of the plan will also serve as a building permit.
The majority required
The majority required to carry out works on the common property is set by the Strengthening Law, the Land Law (Strengthening of Condominium Buildings against Earthquakes) (חוק המקרקעין (חיזוק בתים משותפים מפני רעידות אדמה)):
- Strengthening and adding apartments: the Superintendent of Land Registration may approve the works on a claim by the owners of two thirds of the apartments, who hold two thirds of the common property Strengthening Law, section 5.
- Demolition and reconstruction: under the 2023 amendment, two thirds of the apartment owners and of the common property, in a building of at least four apartments with more than two owners. Before the amendment, four fifths were required Strengthening Law, section 5A.
Here too, the Superintendent will not approve works when the objecting owner was not offered alternative housing or security, or when there are older apartment owners or owners with disabilities who were not offered the solutions set out in the law. It is worth checking with the residents' lawyer which majority applies to a particular building, according to the type of work.
In a transaction under the Strengthening Law, every apartment owner may cancel the transaction if, within 18 months, the developer has not contracted with half of the apartment owners, if within three years it has not obtained the required majority, or if within three and a half years it has not submitted a permit application. Cancellation may require a payment to the developer, under the regulations published in 2025.
Betterment levy and taxes
- Betterment levy: one quarter of the betterment, that is, half the usual rate. The city council may reduce it to one eighth, under the conditions in the law. Under the law the levy is imposed on the apartment owner, so the agreement must state that the developer bears it.
- Land appreciation tax (mas shevach) and VAT: the 2023 amendment applied the exemptions that existed in TAMA 38 to this track as well, and in demolition and reconstruction the exemption was extended, subject to conditions, also to an apartment owner who receives two apartments.
Building renewal, pinui-binui (evacuate and rebuild) or TAMA 38
| Building renewal | Pinui-binui | TAMA 38 | |
|---|---|---|---|
| Scope | A single building or several plots | A compound of one or more buildings | A single building |
| Who approves | The local planning committee | Usually the district planning committee | The local planning committee, by permit |
| Duration | Medium | Long | Relatively short |
| Status today | Active, with no expiry date | Active | Expired. Only applications submitted in time |
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
How to start
Check the municipality's policy
At the urban renewal administration or the planning department: what is allowed in your street, and to what extent.
Choose a residents' committee and professionals
A lawyer and a supervisor acting for the residents, before any signing.
Ask several developers for offers
Based on the same requirements. The developers and contractors directory lets you filter by region and field.
Negotiation, signatures and the plan
After the signatures, the developer submits the plan to the local planning committee, and then the permit application, if the plan does not serve as the permit.
Frequently asked questions
What is the Shaked plan?
The Shaked plan, also called the Shaked alternative, is a track established by Amendment 139 to the Planning and Building Law in 2022. It allows the local planning committee to approve a plan for strengthening a building or for demolishing and rebuilding it, with additional building rights. The track was designed to replace TAMA 38, which has expired.
What is the difference between building renewal and TAMA 38?
In TAMA 38 the rights were set in a national plan, and strengthening (38/1) was exempt from betterment levy. In building renewal the local planning committee sets the rights for each building according to its own policy, up to the ceilings in the law, and a reduced betterment levy applies. Unlike TAMA 38, the track has no expiry date.
Is our building suitable for building renewal?
The track is intended mainly for old residential buildings whose building permit was issued before 1980, with at least two floors and four apartments. The decision whether to approve, and to what extent, depends on the policy of the local planning committee in the city.
How long does building renewal take?
Usually less time than pinui-binui, because the plan is approved by the local planning committee and sometimes also serves as the permit. The exact duration depends on the local authority and the scope of the project.
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
Want to know what can be built at your building?
Send us the building's address and the number of apartments, and we will check the possible track and the first steps.