Urban Renewal: A Step-by-Step Guide

Urban renewal is a process in which cities and neighborhoods are updated, revitalized, and developed to adapt to modern needs and the characteristics of their residents and surroundings. The process varies from place to place, and its goal is to improve the quality of life in the existing environment in general, and in a new apartment in particular, by incorporating suitable infrastructure and significantly higher property values.

The urban renewal process brings with it many advantages and challenges, as follows:

Improving quality of life: Participating in an urban renewal project leads to an improved quality of life, both in terms of a new, modern apartment that includes a balcony, a safe room, and high-end finishes in luxurious buildings with designed lobbies and common areas, and by significantly upgrading the public space through improved infrastructure, densification, and the creation of green spaces and public institutions for the benefit of neighborhood residents.

The experience and integration process: Participating in the construction of a new home and building allows residents to take an active role and be involved in the process, by coming together as a large group for a common goal. In this way, you can influence and express your opinion regarding various details of the project.

Potential challenges: Large-scale renewal projects create significant challenges, such as improving transportation infrastructure, planning public spaces, integrating into the urban fabric, and upgrading existing sewage and power line infrastructure. The complexity of these projects is one of the main factors in initiating them, which is why they require experience and professionalism when dealing with key stakeholders to approve and launch the project. It is a long and difficult process, but ultimately, it is very rewarding for all involved.

Additional social interaction: Establishing "evacuate and build" (Pinui Binui) complexes requires the consolidation of several adjacent buildings to ensure feasibility and viability. Participating in the process provides an opportunity to meet other residents in the neighborhood, form new friendships, and feel part of a larger community.

Process guidance: Partnering in the organization and approval stages of the project allows you, as a client, to understand your rights and the benefits you are entitled to, as well as to grasp the overall planning for the complex and public areas. It also provides the ability to influence the overall design to better meet the needs you wish to improve in the project.

How does it work? Here are the main stages:

1. Selecting a representative committee – The residents of the complex select a representative committee to act on their behalf in choosing a residents' attorney.
2. Selecting a developer – The residents' attorney, with the participation of the representative committee, reviews all proposals accordingly, obtains the residents' approval, and issues a "notice of selection" to the chosen developer.
3. Residents' attorney fee agreement – to be paid by the selected developer.
4. Initial engagement between the two legal counsels (developer and residents) to draft an initial binding agreement, leading to a final stage where all terms are agreed upon. Appointment of a residents' inspector – to be selected by the residents/representative committee – with fees paid by the developer.
5. Developer's signature on a binding agreement – an urban renewal project requires a "required majority," meaning 67% of the signatures of the rights holders in the complex, to advance the project from a planning perspective.
6. We will provide you with funding for independent legal counsel of your choosing; these resources will assist and accompany you throughout the process. The agreement will include, with full transparency, all terms and rights to which you are entitled, the new apartment plans, the specifications you will receive, as well as all appendices to the agreement.
7. Funding and Expenses: An urban renewal project is fully funded by the developer. As part of the process, Damari will provide you, at its own expense, with a comprehensive package of services and solutions:

• Full rent for the entire construction period, as determined by an agreed-upon appraiser funded by Damari.
• Funding for legal fees and an engineering inspector, to be selected by the apartment owners to represent you throughout all stages of the transaction.
• Assistance in locating an alternative apartment for the duration of the construction period.
• Funding for moving services and expenses associated with relocating to the alternative apartment and moving back.
• Assistance in organizing the move to the alternative apartment and back to your new home for populations in need (the elderly, people with disabilities, etc.).
• Personal and close support from the Damari service department throughout all stages of the process.

Note : It is important to know that other payments not directly resulting from the transaction, such as taxes, payments, and levies incurred prior to the engagement (municipal debts, Israel Land Authority capitalization fees, etc., as well as ongoing payments or debts) regarding the existing apartments until their handover to the developer or until their evacuation, shall be borne and paid by the residents.

Please note that there is a ceiling for exemptions from betterment tax, purchase tax, and the like. Furthermore, no exemption will be granted if the property is defined as business inventory, all as detailed in the Real Estate Taxation Law (Betterment and Purchase), 1963, and subject to additional conditions as specified in the law.

8. Construction Phase : We build and renovate using professionals who are experts in their fields. The company also works in collaboration with senior consultants – architects, engineers, project managers, and site managers. The professionalism of the process is a shared interest for you and us – and we will ensure we realize your dream of a new apartment in a new building, according to our company's highest standards.
9. Receiving the Key : The big moment arrives, and you receive a new apartment and return to the same, now-renewed environment. At the end of the renewal process, you will receive a large, new apartment with a rich, high-end standard, a spacious balcony, a secure room (Mamad), a storage unit, and parking. You will enjoy a new, spacious, and prestigious building, including elevators, built according to standards for protection against safety hazards and earthquakes.
10. Upgrading the Space and Environment The neighborhood is undergoing a significant transformation. Apartments and buildings are being renewed, and the living environment is getting a fresh look: green spaces, parking lots, access roads, new infrastructure, lighting, gardens, and public areas that upgrade the area in an innovative and progressive way. All this and more will contribute to a significant improvement in your quality of life and will attract a new, high-quality population to your revitalized neighborhood. Renew with all the advantages:

• Replacing an old property with a new, larger apartment equipped with rich, high-quality specifications
• Financial security – For many residents of older neighborhoods, the renewal process is a solution and the only way to improve their quality of life and financial security, by receiving a new property that is significantly more valuable than the one they currently live in.
• Full advance guarantee under the Sale Law, based on the value of the new property you will receive
• You get a safer apartment in a building that meets all safety standards
• The neighborhood you live in is getting a facelift and being upgraded with new infrastructure
• Signing an agreement with neutral legal counsel of your choice
• No moving costs from the old apartment and back to the new home
• No rent expenses during the transition period
• Your apartment is being built by Y.H. Dimri, a robust development company with financial strength and a proven reputation for quality
• Construction is managed by a professional and skilled team of engineers, architects, and project managers
• Throughout every stage of the process – you are not alone! At the start of the process, we will assign you a project manager who will accompany you through every step and be available for any questions – even while you are staying in your temporary apartment.