Jerusalem Mayor Nir Barkat today announced a new affordable housing plan for the capital with the objective of lowering the price of apartments by 20% from their market value. The plan will apply to all areas of the city and its target population is students and young couples, based on criteria set by the municipality.
Under the Jerusalem Municipality's plan, contractors will set aside 20% of a new project's apartments to be less than 100 square meters in size, and sold for 20% less than the market value of corresponding apartments.
Eligibility criteria will include at least one of the spouses being younger than 41 and that they do not already own an apartment. The benefit will amount to NIS 200,000-300,000 toward purchasing an apartment.
Barkat called the plan "the beginning of a revolution." He said, Jerusalem is a pioneering city in Israel in developing a model to address affordable housing that is formulated on similar models throughout the world. The plan offers affordable housing solutions for young families - a segment of the population with great potential to contribute to the city. We have an interest in making sure that the young population stays in Jerusalem as they are the oxygen for Jerusalem’s future. I have no doubt that this revolution, together with cultural, educational, and economic reforms that we have initiated will have a prominent role in halting the negative migration from Jerusalem."
Barkat set up a special unit, the Unit for Promoting Urban Renewal and Affordable Housing at the Jerusalem Development Authority, to oversee the program. The unit will have a NIS 1 million budget and will develop practical tools for planning and marketing affordable apartments, as well as pricing models for affordable rental apartments, starting at NIS 2,200.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2010
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