One of the most effective tools for improving and renewing residential neighborhoods and increasing the supply of apartments is urban renewal, or the so called ‘destruction and construction’ process (pinoy binoy). However, the projects often encounter the refusal of tenants to vacate, unfair practices of developers vis-a-vis the same tenants, and lack of proper incentives to facilitate the process. A new law approved this week by the Reform Committee will address this problem precisely.
In the framework of the law, the proper contact between the developer and the tenants will be established. Developers will be obliged to share all their plans with the residents in a unified conference rather than the “divide and conquer” method, and will be required to provide housing solutions to the older tenants, which the state will exempt from tax.
MK Rachel Azaria: “We are changing the entire concept of the destruction and construction process in urban renewal. We are not fighting tenants, we are promoting projects, while making it easier for tenants. “