What is Pinui Binui?
Pinui-binui, literally translated as evacuation-reconstruction, is an urban renewal process in which old buildings are demolished in a defined compound and new buildings are built in their place. In contrast to TAMA 38, which usually involves the renovation of a single building or small-scale projects, pinui-binui is applied to large complexes of several buildings, or more, and sometimes even serves to demolish and rebuild entire neighborhoods. This process is considered more appropriate from a planning point of view – since it is possible to redesign the entire complex, and besides increasing the number of apartments, may include commercial and employment areas, green spaces, educational institutions, etc. It also has an important environmental advantage, since it allows densification in cities, thereby reducing the need for expansion into open spaces. The disadvantage of pinui-binui is the time it takes to get projects off the ground, often more than a decade from the start of the process until the completion of the project.
According to data from the Urban Renewal Authority, in 2021, 42 pinui-binui plans were approved throughout Israel for the construction of 18,482 apartments, of which 14,232 were additional apartments (beyond the number of apartments originally in the complex). According to the data, permits were issued for the construction of 6,995 apartments in 32 pinui-binui complexes.
Pinui Binui tracks
There are two pinui-binui tracks: the local authority track and the taxation track. In the former, the local authority initiates the renewal process in a specified area, prepares the plan, and submits it to the planning institutions. In the second track, also known as the “entrepreneurs track,” the program is initiated in the private market. In both tracks, the director of the Government Authority for Urban Renewal declares the complex an “evacuation-construction complex”, a declaration that grants tax benefits to both project developers and tenants who are expected to improve their apartments.
The process for residents of eligible buildings
Residents who wish to advance a renewal process in their building or compound must come together and elect a representative body that will represent them vis-à-vis the various players in the course. The representative must then appoint a lawyer on behalf of the tenants, who specializes in urban renewal. In the next stage, the representative office, accompanied by the lawyer, conducts a developers’ tender for proposals to advance and carry out the project. After selecting a developer, negotiations are conducted between the developer and the tenants’ attorney on the project plans and financial considerations. During the construction itself, residents vacate their apartments and move into rented apartments, funded by the developer, for a period of several years until the project is completed.
This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.
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