Pinui Binui and TAMA 38 in English: A Guide for Apartment Owners and Olim in Israel

Updated July 2026. This guide explains Israel's urban renewal tracks in plain English for apartment owners who do not read Hebrew fluently: olim, foreign owners and second-generation heirs. It is general information, not legal advice - before signing anything, consult a lawyer who represents the residents.

What is happening to your building?

If you own an apartment in an Israeli building from the 1950s-1980s, sooner or later somebody will knock on the door with an offer: a developer wants to demolish the building and build a taller one, or to reinforce and extend it. In exchange for your consent, you receive a new or upgraded apartment - usually larger, with an elevator, a protected room (mamad) and parking - at no direct cost to you. The developer profits by selling the additional apartments the new zoning allows.

This is not a scam and not a gift. It is a regulated market called urban renewal (hitchadshut ironit), supervised by a dedicated Government Authority for Urban Renewal, with specific laws about how many owners must agree, what guarantees you must receive, and who pays for the professionals who protect you. Understanding the rules is what separates owners who sign a good deal from owners who wait a decade for a project that never happens.

The two main tracks

Pinui-Binui (evacuate and rebuild)

The heavyweight track: an entire compound of buildings is demolished and rebuilt at higher density. Owners move to rented apartments (rent paid by the developer) for the construction years, then return to new apartments in the new towers. Pinui-binui deals usually give the largest apartment upgrades, but they take the longest - the national average is around a decade from first signature to keys, and the planning-approval stage alone can run 2-5 years.

TAMA 38 and its successors

TAMA 38 was a national plan that let developers reinforce a single building against earthquakes (TAMA 38/1) or demolish and rebuild it (TAMA 38/2) in exchange for extra building rights. The national plan expired for most purposes in late 2024, but thousands of projects approved under it are still moving, and several municipalities received extensions into 2026. Its replacement is a patchwork of municipal plans (often called the Shaked alternative framework), so the practical question for a single building today is: what does OUR city's local committee currently approve? A residents-side lawyer or the municipal renewal administration can answer that in one meeting.

TAMA 38 itself expired for new applications (finally in May 2026 in the extending cities). What replaced it is a patchwork of municipal renewal plans - our Hebrew page on the TAMA 38 alternatives tracks the current state.

The consent thresholds (the numbers that decide everything)

Israeli law does not require 100% agreement. The key thresholds, as updated by the 2023-2024 legislation:

• 66% of apartment owners in a compound is enough to advance a pinui-binui project.
• 67% (two thirds) is enough to file a lawsuit against a refusing owner (a "sarvan"). Courts can and do order compensation or force the sale of a holdout's obligations when the refusal is unreasonable.
• 80% of owners holding 75% of the common property is the special majority for a demolish-and-rebuild deal in a single building.

These percentages are exactly why organized buildings move and disorganized buildings stall. Knowing in real time how many owners have signed - and which apartments are stuck on missing paperwork rather than actual refusal - is most of the game.

Your rights as an owner (the short list)

• A new or upgraded apartment, typically with more floor area, a mamad, a balcony and an elevator. The exact addition is a negotiation, not a law - which is why the residents need their own appraiser.
• Rent during construction in pinui-binui and TAMA 38/2, paid by the developer, plus moving costs.
• Bank guarantees (sale-law guarantees) that protect the value of your new apartment if the developer fails.
• A lawyer chosen by the residents and paid by the developer. This is the single most misunderstood right. You do not use the developer's lawyer. The owners choose their own counsel, and the law makes the developer fund it.
• Special arrangements for elderly owners (over 70), including options to receive an alternative apartment or cash arrangements instead of waiting years for the rebuild.
• Tax relief: a personal exemption usually covers the apartment swap in these deals, with edge cases (very high-value apartments, multiple units, recent purchases) that require specific advice from a tax professional.

What is different when you live abroad or made aliyah recently

Foreign owners and olim stand on equal legal footing with every other owner: your signature counts the same, and the thresholds above apply to you identically. In practice, three things need attention:

• Power of attorney. If you are abroad, you will sign documents through a POA - typically executed at an Israeli consulate or with an apostille. Prepare it early; chasing signatures across time zones is the classic reason a building stalls at 64%.
• Staying informed. Building committees run on Hebrew WhatsApp groups. If you cannot follow them, you are the owner the committee "could not reach" - which delays everyone, including you. Ask the committee for an English channel, or use a tool that shows the project status in English (see below).
• Inheritance paperwork. Many stalled apartments belong to heirs who never completed the Israeli probate process. If you inherited the apartment, regularizing the registration (Tabu) early can be the difference between joining the deal and blocking it.

Following your building's project in English

Nadlan's free building project room works fully in English. The whole building shares one private space: every apartment's consent status is painted on a 3D model of the building, a 10-stage progress bar shows where the project stands (with typical durations for each stage), documents are tracked per apartment, and the committee posts updates everyone sees. Switch the interface with one link - Hebrew for the neighbors, English for you.

• Open the project room in English (with a live demo) - free for residents and committees.
• Run the free feasibility check in English - enter the address, floors and consent state, and get a first AI orientation of the likely track and next steps.

The process at a glance

1. First organizing - a residents assembly, a protocol, a full list of owners (1-3 months).
2. Electing a committee - 3-5 neighbors with a written mandate (1-2 months).
3. Collecting signatures - transparent tracking toward 66/67/80% (6-18 months).
4. Hiring professionals - residents-side lawyer and appraiser, developer-funded (2-4 months).
5. Choosing a developer - a tender comparing track record, financial strength and guarantees (4-8 months).
6. Planning approval - the committees; the big variable (2-5 years).
7. Building permit - final specifications and apartment selection (1-2 years).
8. Moving out - developer-funded rent (1-3 months).
9. Construction - with a residents-side supervisor (2-4 years).
10. Delivery and registration - occupancy permit, handover, warranty year, Tabu registration (6-18 months).

The durations are national averages, not promises. The honest overall expectation for pinui-binui is roughly a decade.

Red flags before you sign

• Anyone pressuring you to sign "just a preliminary document" before the building has its own lawyer. Preliminary documents can bind you.
• A developer-supplied lawyer presented as "representing everyone." The residents choose their own counsel; the developer pays.
• No talk of bank guarantees, or guarantees from a company rather than a bank.
• Promises of specific apartment sizes before an appraiser has examined the economics.
• A signature count nobody can verify. Ask to SEE the consent status - a transparent building is a protected building.

What you pay (and what you never should)

In a properly structured deal, the apartment owner pays essentially nothing out of pocket: the developer funds the residents' lawyer, the appraiser, the supervisor, the rent during construction, moving costs and the construction itself. What owners DO sometimes encounter: a small betterment-levy exposure in specific municipal situations (your lawyer will flag it), tax edge cases for unusually valuable apartments or investors with multiple units, and upgrade costs if you personally choose finishes above the standard specification. If anyone asks you for a signing fee, an "organizer fee" deducted from your apartment, or a percentage of your compensation, treat it as a red flag and get independent advice before continuing.

Quick reference: five Hebrew terms you will hear

• Diyur chalufi - the substitute housing (rent) the developer pays while your building is down.
• Sarvan - a refusing owner. After 67% consent, unreasonable refusal can be litigated.
• Nesach Tabu - the land-registry extract proving your ownership; the first document every committee will ask you for.
• Mamad - the reinforced safe room every new apartment includes.
• Minhelet - the municipal urban-renewal administration; a free, official address for city-specific questions.

Frequently asked questions

Do I have to sign?

No, and a considered refusal is legitimate. But once two thirds of the owners have signed, a refusal that a court finds unreasonable can expose you to a lawsuit for the damage the delay causes your neighbors. If you have concerns, raise them through the residents' lawyer - the earlier, the more leverage you have.

Who pays for all the professionals?

The developer funds the residents' lawyer, the residents' appraiser and the construction supervisor. Choosing them, however, is the residents' right - never delegate that choice to the developer.

What happens to my mortgage?

The deal is structured so your existing mortgage rolls onto the new apartment, coordinated between the banks and the lawyers. It is routine, but disclose the mortgage to the residents' lawyer early.

I inherited an apartment with my siblings. Can we sign?

Yes, but every registered owner (or their legal representative) must sign. If probate was never completed in Israel, start that process now - it is the most common single cause of stuck apartments.

Where do I verify official information?

The Government Authority for Urban Renewal publishes guides, the declared-compounds registry and a free advice service for owners on gov.il. Municipal renewal administrations (minhelet) answer city-specific questions.

This page is general information for orientation only and is verified against the primary official sources: the legislation, the Government Authority for Urban Renewal and gov.il publications. It is not legal or tax advice. Before signing any document, consult an independent lawyer representing the residents.