The Haifa Contractors Association opposes the municipality’s intention to collect improvement levies of up to 50 percent in urban renewal projects and says: “Such a decision will thwart the implementation of most urban renewal projects within the city.
Posted on: 3.4.22 23:35
The Haifa City Council is expected to vote on a proposal for an order submitted by city engineer Ariel Waterman, which seeks to determine the amount of the improvement levy in urban renewal projects in the various neighborhoods. The Haifa District Contractors Association defines this as an “earthquake” in the field of urban renewal, no less, and warns that dozens of projects with thousands of housing units could go down the drain.
As first published in “Kalbo – Haifa and the Krayot”, in amendments to legislation in the field of urban renewal under the Arrangements Law, which was enacted in November last year, it was stipulated that the rate of improvement levy collected in condensation or evacuation-construction plans will be 25 percent instead of 50 percent. Local authorities will determine otherwise. The regulation will take effect from May 1, but the city council has the authority to set an improvement levy of 25 percent, 50 percent or a full exemption from the improvement levy for evacuation-construction projects. If the authority does not vote for it by the May 1 deadline, the improvement rate will be 25 percent for the entire city. The rates of the improvement levy will be valid for a period of five years until April 2027.
According to the proposed arrangement, which will be submitted to the Haifa City Council for approval, the areas that will be exempt from the improvement levy are the “Mansfeld” complex in the Sha’ar Ha’aliya neighborhood, Hadar Lower, Ramat Vizhnitz, Wadi Nisnas, the area within the HF / 2218 plan on Kiryat Haim Urban in the condensation route, the Truman complex, the Degania complex, the Warburg complex in western Kiryat Haim, the residential complex in Kiryat Haim East, Statistical Area 111 in Kiryat Shmuel, and the eastern neighborhoods – Halisa, Tel Amal, Neve Yosef and Neve Paz. , Known as “Compound B”, will be exempt from the improvement levy.
Map of the rate of improvement levies in urban renewal programs in the various neighborhoods
The areas on which an improvement levy of 25 percent will be imposed are: Kiryat Eliezer, Kiryat Eliyahu, Kiryat Shprintzak, the area included in the HF / 2222 plan – condensing of the Ramat Shaul – Emil Zola compound, and the coastal neighborhoods – Neve David, Sha’ar Ha’aliya, Ein Hayam and Jezreelia.
A 50 percent improvement levy will be charged in all other neighborhoods not mentioned above. A levy in such a rate will also be levied on the evacuation-construction plan on King Amatziahu Street in the Neve David neighborhood in Phase C – Lot 2000, and on the urban renewal plan for the evacuation-construction of King Solomon.
The proposal for an order reads: “It was decided to divide the city into areas, to examine the selected parameters in each area, and to determine the condition of each area in terms of the parameters examined. And in areas in good condition, a 50 percent levy will be levied on urban renewal programs.
According to Haim Feiglin, chairman of the Haifa District Contractors Association and vice president of the Builders of the Association of Contractors, this is a real scam. Feiglin: “Dozens of projects with thousands of apartments in danger will go down the drain. Both the apartment owners and the developers in the evacuation-construction complexes in the city were based on the municipality’s promises, some of which were also collected in an explicit government decision to grant a full exemption from improvement levies. In light of this, the contracts were made, plans were made and many resources were invested by dozens of architects, engineers and consultants over the years. All of these resources are now in danger of going down the drain. Even without improvement levies, the housing market in Haifa is lagging compared to most districts in the country and is not the peak of economic viability in terms of apartment prices. A decision on 50 percent improvement levies will thwart the implementation of most urban renewal projects within the city limits, with some projects not even being able to bear a 25 percent levy.
“In any case, we will not pay 50 percent of the improvement levies in evacuation-construction projects in Haifa and we will fight this in every planning and even court. I recommend the Haifa Municipality to take an example of proper urban management from Jerusalem and Kiryat Ono, These are important projects. “
The Haifa municipality responded: “No decision has yet been made on the issue. The issue will be brought up for discussion and a decision by the city council.”