What TAMA 38 was
TAMA 38 is a national outline plan from 2005 for strengthening existing buildings against earthquakes. It allowed apartment owners in buildings built before 1980 to receive strengthening, a safe room (mamad) and renovation without paying, with the developer financing the works by building new apartments on the roof or in place of the building. The building rights were set in the plan itself, and the project was approved by a building permit, without a new plan.
TAMA 38/1: strengthening and expansion
The existing building is strengthened and receives a safe room, sometimes a lift, an extension and a facade renovation. The developer adds floors. The residents usually continue to live in the building during the works.
TAMA 38/2: demolition and construction
The building is demolished and rebuilt, with more apartments. The apartment owners receive a new apartment, and the developer pays rent during the construction period.
The expiry and the timetable
TAMA 38 was not cancelled by law. The National Planning and Building Council set an end date for it, and postponed it several times:
1 October 2023
The formal end date set by the National Council. Cities that did not meet the conditions received an extension, and following the war a further extension.
29 August 2024
The plan ended in cities that did not submit a replacement plan, including Tel Aviv-Yafo, Bnei Brak and Bat Yam, with transitional provisions for applications submitted by 31 December 2024.
18 May 2026
The final date in cities that submitted a replacement plan, or the date the replacement plan was approved, if that came earlier.
The situation today
New applications under TAMA 38 cannot be submitted in any city. Permit applications submitted before the end date in the city, under the transitional provisions set for it, continue to be considered under it.
The project cannot continue on this track. It can usually be moved to building renewal, but the rights, the levies and the timetables are different, and the agreement may need to be updated. The agreement you signed is not cancelled automatically: check with the residents' lawyer what it provides for the case in which the permit is not obtained.
In a transaction under the Strengthening Law (חוק החיזוק), 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. Check with the lawyer the deadlines in your transaction, and the payment to the developer that the 2025 regulations may require.
The majority required
The majority in TAMA 38 projects is set in the Strengthening Law, and it also applies to building renewal, according to the type of work:
| Type of work | Majority | Section |
|---|---|---|
| Change to the common property for strengthening | A majority of the apartment owners | Section 3 |
| Extending apartments | 60% of the apartment owners | Section 4 |
| Strengthening and building new apartments (38/1) | Two thirds of the apartments and of the common property | Section 5 |
| Demolition and reconstruction (38/2) | Two thirds, under the 2023 amendment. Previously four fifths | Section 5A |
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
When the majority has been obtained and an apartment owner objects, the majority applies to the Superintendent of Land Registration (a government body, not the residents' supervisor), who may approve the works. The consent of each apartment owner is given in writing and verified by a lawyer Strengthening Law, section 7.
Older apartment owners
The Strengthening Law protects older apartment owners and people confined to their homes: the Superintendent will not approve the works if they were not offered alternative housing for the period of the works, and a person with a disability requires adapted housing. The 2023 amendment lowered the protection age from 80 to 75, and in demolition and reconstruction older apartment owners were given protections similar to those in pinui-binui (evacuate and rebuild).
Taxes and levies
- Betterment levy: in TAMA 38, strengthening (38/1) was exempt from betterment levy. In demolition and construction (38/2) the exemption applied to some of the rights, and a reduced levy applied to the rest. In building renewal a reduced levy applies.
- TAMA 38/1: consideration in the form of construction services, such as strengthening, a lift, parking and an extension of up to 25 sq m, is exempt from land appreciation tax (mas shevach). Consideration in money is taxable.
- TAMA 38/2: an exemption on the new apartment, up to the area of the old apartment plus 25 sq m or up to a value ceiling set in the law, whichever is higher. The 2023 amendment extended the exemption, subject to conditions, also to an apartment owner who receives two apartments.
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
What replaced TAMA 38
The main track for a single building is building renewal under the Shaked plan: a plan approved by the local planning committee, with rights set according to the municipality's policy. For large buildings or compounds, the track is pinui-binui. Many cities have approved local urban renewal plans, which set what is allowed in each neighbourhood.
Frequently asked questions
Is it still possible to do TAMA 38?
Not with a new application. The formal end date of TAMA 38 was 1 October 2023, but the plan was extended. In some cities, including Tel Aviv-Yafo, Bnei Brak and Bat Yam, it ended on 29 August 2024, and in cities that submitted a replacement plan, on 18 May 2026 at the latest. Permit applications submitted before the end date in the city, under the transitional provisions set for it, continue to be considered under TAMA 38. For new projects, the parallel track is building renewal under the Shaked plan.
What is the difference between TAMA 38/1 and TAMA 38/2?
In TAMA 38/1 the existing building is strengthened and receives a safe room (mamad), sometimes a lift and an extension, and the developer adds floors. The residents usually continue to live in the building during the works. In TAMA 38/2 the building is demolished and rebuilt, and the residents move to a rented apartment. The names 38/1 and 38/2 come from the numbers of the amendments to the plan, and in professional usage they denote the two tracks: strengthening and addition, and demolition and construction.
We signed for TAMA 38 before it expired. What now?
If a permit application was submitted before the end date in your city, under the transitional provisions set for it, it continues to be considered under TAMA 38. If not, the project must move to another track, usually building renewal, and the agreement with the developer may need to be updated. Check with the residents' lawyer the status of the application and what the agreement says. The agreement is not cancelled automatically, but if the project has not progressed within the deadlines in the law, any apartment owner may cancel it.
This is a summary only. Every case should be reviewed individually with a lawyer who specialises in the field.
Is your project stuck because of the expiry?
We will check the status of the application, the agreement and the possible tracks going forward.