Home Lottery Winners Sue Over Canceled Apartments After Four-Year Wait

Approximately 184 families who won the right to purchase subsidized apartments in the "Keter Ha'Ramma" project in Ramat Beit Shemesh are suing the Ministry of Construction and Housing and the Israel Land Authority (ILA) after their wins were canceled. The families, who won the lottery in 2022, have been waiting for four years for their apartments, only to be informed in June 2026 that their contracts were canceled due to a dispute between the state and the developer, Shapir-Nativ.

The lawsuit, filed in the Jerusalem District Court, seeks clarity on how the cancellation affects the families' future, their rights, and the timeline for a decision. The petitioners argue that the state has failed to manage the project and has not kept them informed about the ongoing legal and administrative battles between the developer and the government, which began as early as 2022. They claim they only learned about the dispute late in the process and received individual cancellation notices in late June 2026.

The project, which was meant to include 836 housing units with 60% offered at reduced prices, has been mired in delays. The developer, Shapir, filed a NIS 800 million lawsuit against the Ministry of Construction and Housing and the ILA in April 2025, alleging the state breached its commitments. The state, however, claims the developer is the one who violated the agreement. In July 2026, the developer also informed some free-market buyers of canceled sales agreements.

The winning families are demanding that the Ministry of Construction and Housing and the ILA commit to a timeline for a decision on the project's future within 30 days. They also seek confirmation of their status as lottery winners, ensuring their rights are preserved. This case is seen as a test for the legal standing of winners in subsidized housing programs who have not yet selected their specific apartments.