Public Housing Tenants With Debt Can Get Half Forgiven
Translated & summarized from Bizportal by baba
Israel's Ministry of Construction and Housing has launched a program allowing public housing tenants with rent debt to have up to half of their "new" debt forgiven. Applications are open until December 31, 2026, and require tenants to make installment payments on the remaining balance while continuing to pay current rent. The program covers debts accrued up to September 30, 2026, and aims to help residents struggling with long-term financial difficulties. The ministry estimates that collecting half the debt and ensuring future payments is more effective than pursuing the full amount, which is often unrecoverable.
The story in 6 lines · by baba
- Public housing tenants can have up to half of their rent debt forgiven.
- Applications for the debt forgiveness program are open until December 31, 2026.
- Forgiveness is conditional on making installment payments and paying current rent on time.
- The program covers debts accrued up to September 30, 2026.
- The initiative is managed by the Ministry of Construction and Housing and its managing companies.
- Eligible tenants will pay the remaining debt in installments.
Tenants in public housing who have accumulated rent debt can now apply to have up to half of their outstanding balance forgiven. The Ministry of Construction and Housing launched the program this week, which was announced in the summer. Applications are being processed through the companies managing public housing, such as Amidar and Amigour, and the window for applications remains open until December 31, 2026. Eligible tenants will receive forgiveness for up to half of their "new" debt, with the remainder to be paid in installments. However, this forgiveness is conditional on the tenant adhering to the agreement's terms, which include making the agreed-upon installment payments and continuing to pay their regular monthly rent and associated fees on time.
The program applies to current public housing residents and covers debts accrued up to September 30, 2026. Any debt incurred from October 1, 2026, onward is not eligible for forgiveness. The forgiveness applies specifically to the "new" portion of the debt, defined as debt accumulated within the last seven years, ending September 30, 2026. Tenants with older, "legacy" debts are still eligible, but the forgiveness only covers the recent portion. The amount of forgiveness is determined by the debt's size and ceilings set by the ministry, while the repayment plan for the remaining balance is also tiered.
For example, a tenant with NIS 20,000 in new debt could have up to NIS 10,000 forgiven, provided it falls within the established limits. The remaining NIS 10,000 would be spread over monthly payments added to their regular rent. Successful completion of these payments would make the forgiveness permanent, while failure to comply could result in the debt reverting to its full amount. The initiative, developed by the Ministry of Construction and Housing and the Ministry of Finance's Accountant General, aims to address long-standing debt issues, acknowledging that collecting full amounts from struggling tenants is often unfeasible. The condition of continued timely payments is designed to prevent further debt accumulation.
