Court Rules TAMA 38 Urban Renewal Only for Buildings with Residential Permits
A Tel Aviv District Court judge has ruled that eligibility for TAMA 38, Israel's urban renewal program, requires a building to have an existing construction permit for residential use. Judge Limor Bibi stated that simply planning for residential use or actually using a building for housing is insufficient. While this ruling is not binding precedent, it could pave the way for a definitive decision by the Supreme Court.
TAMA 38, Article 11, allows local planning committees to permit construction additions for existing residential buildings if they are reinforced, following expert opinions and specific guidelines. The central question before the court was whether a residential construction permit was necessary, or if the building's zoning plan or actual use sufficed.
Judge Bibi interpreted the term 'intended' within the planning program. She explained that when referring to a building, 'intended' relates to the final designation and use determined by the construction permit, not just the zoning plan for the land. This interpretation aligns with the overall objectives and incentives of TAMA 38.
The ruling came as Bibi rejected an appeal by Fine Sheva company against a planning committee's decision to deny urban renewal status to its building on Reshif Street in Tel Aviv's Neve Sha'anan neighborhood. The committee had determined the building was not intended for residential purposes under TAMA 38 because its permit was for industrial use, despite the plot being zoned for housing. The company was ordered to pay 20,000 shekels in expenses.
