Israel Offers Up to 50% Debt Forgiveness for Public Housing Tenants
Translated & summarized from Davar by baba
Israel's Ministry of Housing has opened a portal for public housing tenants to settle debts, offering conditional forgiveness of up to 50% of new debt and installment plans for the remainder. The initiative, led by Minister Chaim Ketz, aims to help approximately 23,000 tenants manage their financial obligations. Old debts incurred before October 2019 will be fully forgiven under certain conditions. The program requires tenants to remain in public housing and adhere to payment plans, with applications accepted until December 31, 2026.
The story in 6 lines · by baba
- Israel's Ministry of Housing offers up to 50% debt forgiveness for public housing tenants.
- The program applies to new and mixed debts accumulated until September, with old debts fully forgiven.
- Approximately 23,000 tenants are expected to benefit, with NIS 300 million in debt potentially erased.
- Minister Chaim Ketz stated the goal is to help vulnerable populations and allow them to start anew.
- The debt settlement requires tenants to remain in public housing and meet payment obligations.
- Applications are accepted through housing companies until December 31, 2026.
Israel's Ministry of Housing has launched a new initiative allowing public housing tenants to settle their debts, potentially erasing up to 50% of new debt. The program, spearheaded by Minister of Housing Chaim Ketz, aims to help residents return to regular rent payments and prevent further debt accumulation. It is available to tenants residing in public housing managed by four companies: Amidar, Amigour, Chalemish, and Shikmona.
The debt settlement plan applies to new debts incurred since October 2019, or mixed debts with components before and after that date, accumulated up to the end of September. Under the arrangement, eligible tenants can receive conditional forgiveness of up to half of their new debt, with the remaining balance payable in installments. Importantly, no interest or linkage will accrue on the debt during the settlement period.
Minister Ketz stated that the program is expected to forgive approximately NIS 300 million in debt for around 23,000 tenants. He emphasized the state's need to collect what it is owed but also to distinguish between those who refuse to pay and those facing genuine hardship, with the goal of assisting vulnerable populations and allowing them to start anew.
For old debts accrued before October 2019, the ministry announced that these will be fully forgiven under specific conditions. For mixed debts, the old component will be conditionally forgiven upon signing, contingent on full adherence to the settlement terms, while the new debt component will be handled according to its amount. The forgiveness is not automatic and requires the tenant to still reside in public housing, complete the settlement period, and meet all payment obligations, including current rent and agreed-upon debt repayment installments.
The debt settlement process is managed through the housing companies, not directly by the Ministry of Housing. Applications can be submitted via the managing companies until December 31, 2026. Further details and application procedures are available on the Ministry of Construction and Housing website.
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