Owners in old buildings hear three terms: TAMA 38, the Shaked alternative and pinui-binui. All concern urban renewal, but they differ in scope, approval route and what owners receive.
TAMA 38
TAMA 38 was a national outline plan for reinforcing buildings against earthquakes, with two tracks: reinforcement plus additional construction (38/1), and demolition and reconstruction of a single building (38/2). The plan has come to an end, and permits under it are limited to projects that met the set deadlines or to authorities that extended it under conditions. If you have a TAMA project already in process, check its status with the local authority.
The Shaked alternative
The Shaked alternative is the route designed to replace TAMA 38 for single buildings. Under it, the local authority may approve additional building rights for demolition and reconstruction, according to its policy and neighbourhood planning. Unlike TAMA 38, the scope of rights is not uniformly fixed in advance and depends on the local committee’s decisions, so check your municipality’s policy.
Pinui-binui
Pinui-binui is a broader project, usually covering a compound of several buildings and a new plan for the whole area: demolishing the existing buildings and constructing new ones, sometimes with public spaces, roads and parks. The process is longer but allows the neighbourhood to be redesigned.
The main differences
- Scope: a single building in TAMA and Shaked, a compound in pinui-binui.
- Approval: pinui-binui requires a detailed plan; in the Shaked alternative rights follow local authority decisions.
- Timing: pinui-binui usually takes longer at the planning stage.
- Majority: different rules apply to each track. On pinui-binui see required majority.
What suits your building?
It depends on location, plot size, applicable plans and municipal policy. Start with a planning and legal review before committing to a developer or a track.
Next steps
Every pinui-binui project is different: the building, the developer, the plan and the owners themselves. At Paz Israel & Co. we represent apartment owners in urban renewal projects, review the offer and the agreement and support the owners’ committee throughout. See our pinui-binui and urban renewal page, or contact us to arrange a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information about Israeli law as of the time of writing and is not legal advice.