Have you heard of "Tama"?
January 15, 2018
I'm sure you all have heard the words and seen the signs throughout the country, "Tama 38". If not, then maybe "Pinui Banui" rings a bell? Not quite sure what it means and what it entails. Wanna find out? Keep on reading…
Tama 38 was written up back in 2005 with the purpose of strengthening older apartment buildings. Since Israel happens to be lying on the "Syrian African Rift", Israel is in danger of being affected by earthquakes of extreme magnitudes.By implementing the Tama 38 plans, the Israeli government has seemingly found a solution to strengthen older buildings to withstand these earthquakes, and thus saving lives on the people residing here.
There are two Tama options. Tama option 1, Tama 38, is where a developer comes to an apartment building (must fit the qualifications by the government), or the residents of the apartment building approach a developer, and agree that he will strengthen their building, and in some cases, add an elevator, add parking, extend their apartments, whatever their agreements may be, in exchange for their ownership rights of the roof of the building. "What can a developer do with the owner rights of the building" you may be wondering? Well, with these rights, the developer can build more apartment units, and then sell them for a profit. Ill spare you all the logistics of the conditions, but this is basically the jist. Once they have found their developer match, the residents of the apartment building need 66% of the landlords to sign the contract, and then they proceed to work on getting all the permits passed at the municipality to proceed with this construction.
With the Tama 38 2, also known as "Pinui Binui", the developer tears down the entire apartment building, and rebuilds it. While doing so, they may make the apartments bigger, strengthen the building, redo the sewage, water, and electrical systems, add parking, etc. There arent as many contraints with this option, and can the re-building can be more flexible, therfore better pleasing the apartment owners. Also, the developer will compensate the rent for all the landlords as they will need to find other living arrangements throughout the construction process. The building will require 88% of the apartment owners to agree to this, which is a higher perncentage than the above Tama option.
All in all, though this process can take a long time, in the long run the landlords and the developer both benefit from it. All of what the developer does to the building is at no cost to the landlord, other than having to pay a high Arnona price at the end result, however, the property value will certainly go up once it is all completed.
Want to purchase an apartment that can qualify for the Tama 38, or is in the process of proceeding with the Tama 38? Be sure to contact us at Alon Central to see what we have to suggest!!