National Outline Plan

TAMA 38 is a national program in Israel designed to strengthen older buildings against earthquakes and improve their overall quality. Instead of demolishing and rebuilding the entire structure, TAMA 38 focuses on renovating and adding to existing apartments and buildings.

Types of TAMA 38

• TAMA 38/1 (Strengthening and Additions – The most common type): This involves reinforcing the building’s structure, often adding a MAMAD – ממ”ד – security room to each apartment, a balcony, and an elevator. The existing apartments are typically renovated, and additional floors or wings may be built.
• TAMA 38/2 (Demolition and Rebuilding): While still under the TAMA 38 framework, this option is essentially a “Pinuy Binuy” within TAMA 38. The building is completely demolished and replaced with a new, larger structure. This is less common than TAMA 38/1 when people refer to “TAMA 38” generally.

How TAMA 38/1 Works

• Agreement: Residents of an old building are approached by and sign a contract with a developer.
• Renovation & Construction: The developer carries out the structural reinforcement, adds new features (like elevators, balconies, and safe rooms), and renovates the common areas. They also construct additional new apartments (e.g., penthouse units or units on new floors) that they can sell to cover their costs and make a profit.
• Resident Benefit: Original residents receive an upgraded, safer, and more valuable apartment, typically without direct construction costs

Timeline & Challenges

TAMA 38/1 projects can take 2-5 years from the initial agreement to completion. Delays can arise from:

• Municipal Regulations: Obtaining necessary permits and approvals from municipal planning committees.
• Resident Consent: It requires a high percentage of resident agreement (typically 60-80%, depending on the specific project and law, as outlined in the Planning and Building Law). Disagreements among residents can stall or halt a project.
• Developer Issues: Project viability can be affected by changes in the real estate market or the developer’s financial stability.
• Construction Complexity: Renovating an occupied building while adding new elements presents unique engineering and logistical challenges.

Expected Impact of a TAMA 38 project

The Apartment Owner:

• Receives a safer, renovated, and more modern apartment with added features (e.g., MAMAD, balcony, elevator).
• Benefits from a significant increase in their property’s value due to the upgrades and increased living space.
• Note: While direct construction costs are covered by the developer, owners should anticipate higher ongoing expenses such as increased Arnona (municipal property tax) due to the larger size and higher value of their apartment, and potentially higher Va’ad Bayit (building management fees) for improved common areas and an elevator.

A Renter:

• Generally, renters do not need to leave the building during TAMA 38/1 construction, though they may experience noise and inconvenience.
• After completion, their rent may increase due to the apartment’s enhanced features and the building’s higher value.

The Developer:

• Profits from the sale of the newly constructed apartments on added floors (e.g., penthouse units etc.)
• They may also profit from the renovation of existing units if that is part of the agreement.

The City/Community:

• Enhances public safety by strengthening buildings against earthquakes.
• Contributes to urban renewal and the modernization of older neighborhoods without requiring full demolition.
• Increases the housing supply within existing urban areas.

Summary

TAMA 38 offers a mutually beneficial solution for strengthening and upgrading older buildings, improving safety, and increasing property values, while also providing new housing units. While it involves a commitment of time and some inconvenience, the tangible benefits to both residents and the urban landscape are substantial.