What is TAMA 38?

National Outline Plan 38, known as TAMA 38 in Hebrew, is a program designed to reinforce existing buildings against earthquakes. Initiated by the government in 2005, the program incentivizes apartment owners of older buildings to strengthen their structures by offering additional building rights and tax benefits.

Most common urban renewal track

TAMA 38 is one of the most common urban renewal programs in Israel. According to government data, in 2021 alone, building permits were issued for 545 TAMA 38 projects, resulting in the strengthening and construction of 13,163 apartments. Unlike evacuation-reconstruction (pinui-binui) projects, which focus on renewing entire complexes, TAMA 38 often applies to single apartment buildings. The program is restricted to buildings constructed before April 1980, which were not built according to Israel’s earthquake standards.

Implementation is facilitated through a contract between the apartment owners and a developer. In return for reinforcing the building, renewing its infrastructure, and often expanding existing apartments, the developer receives additional building rights and can construct new apartments for sale.

Two Tracks of 38 Tracks

There are two main tracks for TAMA 38:

1. TAMA 38/1: Strengthening and Reinforcement
   • In this track, the foundations of an old building are reinforced without demolition.
   • Additional floors and apartments are added to the existing structure.
   • The existing apartments are usually expanded to include a safe room (mamad) and a balcony.
2. TAMA 38/2: Demolition and Reconstruction
   • This track involves completely demolishing the old building and constructing a new one in its place.
   • The original owners receive new, larger apartments, each including a safe room.
   • This is the more familiar track due to its efficiency and comprehensive renewal.

The pros and cons of TAMA 38

Advantages:

• Simplified Process: The program is relatively straightforward, requiring only a permit rather than the prolonged promotion of a city building plan.
• Tax Benefits: Apartment owners are exempt from betterment levies at the permit stage, enabling them to enhance their property value tax-free.
• Improved Living Conditions: Residents benefit from safer, modernized homes with added amenities like safe rooms and balconies.

Challenges:

• Local Authority Policies: Not every older building qualifies for TAMA 38, as local authorities have the autonomy to decide where the program can be implemented.
• Economic Feasibility: In peripheral areas, where property values are lower, the sale of new units may not generate sufficient funds to make the project viable.

The Future of TAMA 38

In the coming years, TAMA 38 is expected to be replaced by new urban renewal programs managed by local authorities. While these programs will maintain the concept of renewing individual buildings, they will allow for more tailored planning. Local authorities will have the discretion to determine where such projects can be implemented and the specific building rights granted, leading to more regionally appropriate solutions.