Public Housing (Purchase Rights) Bill, 5786-2025

This bill seeks to revive the Public Housing (Purchase Rights) Law of 1998, which expired in 2023. The law allows public housing tenants to purchase the apartment they reside in at a subsidized price. Who is eligible to purchase an apartment? An eligible tenant is someone who has lived in public housing for at least five years and does not own, nor does their relative, any other apartment or real estate valued at more than 767,785 NIS. Additionally, spouses, children, or parents of a soldier who fell in battle or a victim of hostilities are eligible if they lived with the eligible person in the public housing unit for at least three years prior to their death or move to a nursing facility, provided they also do not own other real estate exceeding the aforementioned amount. What is the right of a continuing tenant? If the eligible person passes away or moves to a nursing facility, their spouse, children, or parents (who lived with them in the apartment for at least three years) may purchase the apartment. If there are multiple continuing tenants, the spouse receives priority; if none, the children; and if none, other continuing tenants. They are also subject to the condition of not owning another apartment. How is the apartment price determined? The price will be set by a government appraiser. A conditional grant will be deducted from the base price. The maximum grant is 90% of the base price in national priority areas and 82.5% in other areas. The grant amount depends on the number of people in the apartment and the length of residency. For example, a single tenant in a national priority area will receive a 25% grant, while a tenant with two or more children in another area will receive 60%. Seniority adds an additional discount percentage, up to 6.25% per year for a non-disabled tenant and up to 2.75% per year for a disabled tenant. There is an option to increase the discount for certain disabled persons through an exceptions committee. If the base price exceeds 1,186,388 NIS, the conditional grant will be calculated only on the amount exceeding that sum. What is a conditional grant? The conditional grant becomes a full grant only after five years from the contract signing date, provided the apartment was used by the eligible person or their heirs. If the conditions are not met, the grant must be repaid. The state will register a mortgage or a cautionary note on the apartment to secure the repayment of the grant. Are there restrictions on purchasing the apartment? The law will not apply to an eligible person who has reached mandatory retirement age and has no spouse or children, unless their spouse or children continue to live with them. The law also will not apply to apartments that a public housing company intends to demolish for reconstruction, provided a construction plan was submitted within one year and reasonable alternative housing was guaranteed for the tenant. In cases of urban renewal (Pinui-Binui), the tenant will be entitled to purchase a new apartment of the same value and size. What happens with building rights? Anyone who purchased a public housing apartment will have the right to use the building's construction rights, even after selling the apartment, without needing the consent of the apartment's rights holder. The purchased apartment may be expanded by up to 30% of its original area, but not more than 40 square meters. Establishment of a public housing fund: Funds received from the sale of public housing apartments will be deposited into a dedicated fund at the Ministry of Construction and Housing. The fund's money will be used exclusively for increasing the public housing stock.

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