Israel's Finance Ministry Demands Payment for Gaza Border Caravans

The Israeli government is demanding payment from Gaza border communities for hundreds of mobile homes, originally provided as temporary housing for residents displaced by the October 7th Hamas attacks. An attempt to sell these units to the affected communities failed when the Finance Ministry imposed a condition prohibiting the use of government grants for the purchase, requiring independent funding totaling tens of millions of shekels.

Following the failed sale attempt, responsibility for the caravans has shifted to the Settlement Division of the World Zionist Organization. This division is now developing a plan to offer the units for rent, prioritizing Gaza border communities, while retaining ownership. If demand is insufficient, the Settlement Division may relocate the surplus units to other geographical areas at its discretion.

The Settlement Division, though not a government body, is state-funded and acts as an executive arm for the Ministry of Settlement and National Missions, headed by Minister Orit Strock. The division has played a significant role in rehabilitating the Gaza border region, assisting the "Tkuma" administration in acquiring these caravans and establishing temporary neighborhoods for evacuees.

The "Tkuma" administration had purchased approximately 680 mobile homes at a cost of about 1.1 billion shekels for temporary housing. A call for proposals was issued for the remaining 560 units (after 120 were purchased by host communities), with the government offering them at a 50% discount from the purchase price, averaging around 350,000 shekels per unit.

However, a unique clause from the Finance Ministry stipulated that only independent funds could be used for the purchase, barring the use of any government support, including from "Tkuma." This condition effectively halted bids from communities, such as Eshkol Regional Council, which had planned to purchase about 150 units for an estimated 52 million shekels to house returning residents and accommodate new volunteers.

The government argues that the discounted price encourages demographic growth and that the caravans will be relocated if there is no demand in the Gaza border region. The Settlement Division stated that the management of these units will follow government policy, with rentals allocated through transparent calls for proposals and professional criteria coordinated with relevant ministries.