Revolution in the South: State to Subsidize Ashkelon Projects with 148.5 Million Shekels

The Government Authority for Urban Renewal is set to publish a new call for proposals to subsidize 'pinui-binui' (evacuation and construction) projects in Ashkelon with a budget of approximately 148.5 million shekels.

In accordance with government decision No. 852 of 2023, this initiative is aimed at strengthening the city of Ashkelon. A total of approximately 600 million shekels was earmarked to subsidize these projects. The decision mandates the publication of calls for proposals between 2023 and 2031 to provide grants for 'pinui-binui' projects that do not meet the threshold of economic viability, serving as a substitute for the allocation of additional land.

The urban renewal sector has been gaining momentum in recent years, although according to a report by the State Comptroller, the data does not yet indicate a surge in project completions, and there remains a lack of coordination between various authorities. The current call for proposals invites developers who meet the set criteria to compete for funding to assist in the implementation of projects that lack economic viability without government support.

The selection process is divided into several stages. Initially, the Authority for Urban Renewal examines whether the developer and the project meet the threshold conditions, including the lack of inherent economic viability. The Authority also determines the maximum amount of funding available for each proposed complex, with winners selected based on the criteria detailed in the call, including the actual amount of funding requested.

Under the government decision, a budget of 600 million shekels is intended to be allocated annually from 2026 to 2031 as part of a multi-year grant distribution program. The current call, with a framework of up to 148.5 million shekels, will allow the Authority to select a larger number of winning complexes and accommodate large-scale projects that require significant assistance.

Deputy Director General of the Government Authority for Urban Renewal, Arbel Altshuler, stated:

"The third call for proposals to subsidize projects in Ashkelon is part of a multi-year process and the state's ongoing commitment to strengthen the city and promote urban renewal, including in complexes that require budgetary assistance to reach economic viability under market conditions."

He added: "The two previous calls published by the Authority in recent years have been highly successful, resulting in the selection of winners, with the first building permits expected to be issued in the coming months. Through government assistance, we enable many complexes to reach implementation, thereby ensuring the renewal of the old built fabric while addressing the needs for strengthening and protection, improving residents' quality of life, and increasing the housing supply."